Bips & Pieces
Multi-Notch Sovereign Downgrades Likely Across Emerging Markets – Fitch
The onset of the coronavirus and a slump in the oil price is leading to a rise in the likelihood of multi-notch sovereign downgrades.
7 Apr 2020
Central Bank of Brazil Prohibits Dividends, Pay Rises for Banks
The National Monetary Council (CMN) of the Central Bank of Brazil has temporarily prohibited pay rises for financial institutions in the country until September 2020. The ban is aimed at ensuring that funds are used to maintain credit and to absorb any future losses that may occur.
6 Apr 2020
MENA PMIs Fall Sharply as Supply Chain Disruption, Output Decline Dampens Sentiment
PMI readings for the UAE, Saudi Arabia and Egypt treaded further into negative territory this week as businesses continue to come to grips with declining sales and supply chain disruptions.
6 Apr 2020
New Development Bank Places RMB5bn ‘Coronabond’ in Interbank Market to Help Finance Chinese Healthcare Initiatives
The New Development Bank (NDB) raised RMB5bn in the Chinese Interbank bond market at the end of last week, with the proceeds going towards financing public health expenditure to help combat coronavirus in several Chinese provinces.
6 Apr 2020
Mexico 2021 Growth Revised Down, Higher Deficit Expected
The finance ministry forced to price in the economic damage from the pandemic into its forecast for an economy that was already in recession.
6 Apr 2020
Akbank Renews USD510mn Syndicated Loan Despite Market Volatility
Akbank has successfully renewed a USD510mn syndicated loan, marking a rare transaction amidst a volatile market backdrop. With a one-year maturity, the loan priced at LIBOR+2.25%, lower than the previous cost of borrowing on the facility in March last year.
3 Apr 2020
Emerging Markets Already Presenting Opportunities Despite Fear of Second Wave of Outflows
The asset class continues to see significant outflows as a flight to safety escalates, with the vast monetary and fiscal stimulus programmes announced by global governments in recent weeks failing to convince markets of brighter near-term prospects. But investment opportunities may become more pronounced sooner than people think, investors say.
3 Apr 2020
African Countries in Talks with IMF for Lifelines to Help Fight Coronavirus
The IMF has approved or is in talks to disburse more than USD450mn in financial assistance for several African countries this week, with a substantial portion of funding going towards balance of payments and budgetary support as the continent’s leaders try to contain the spread of, and economic fallout from, COVID-19.
3 Apr 2020
Mexican Government Announces 17 New Real Estate Projects, Raising Questions About Timing
As a pandemic-induced lockdown looms, Mexico City government finally approved the construction of 17 real estate projects, but is it too little too late for the country's real estate sector?
2 Apr 2020
Emerging Market Debt Renegotiations Start to Pile Up, but Could be Slow to Materialise
Emerging market sovereign spreads widened dramatically throughout the month of March as world governments struggled to contain the economic fallout from COVID-19, with Ecuador, Angola, and Argentina leading losses. Observers say that while debt restructurings are coming thick and fast, the spread of the virus may cause some to be delayed.
2 Apr 2020