Bips & Pieces
LATAM Airlines Follows Avianca in Seeking Bankruptcy Protection, Debt Restructuring
LATAM Airlines announced this week that it would seek bankruptcy protection and restructure its debt after a steep fall in regional and global passengers due to coronavirus-related lockdowns left the company struggling to maintain cashflows and pay off maturing debt.
27 May 2020
Philippines gets USD400mn from ADB to Boost Capital Markets, Infrastructure Development
The Asian Development Bank (ADB) has approved a USD400mn loan for the Philippines this week, with the proceeds going towards supporting a range of policy initiatives including the development of domestic capital markets and infrastructure-linked debt.
26 May 2020
BlackRock: Financial Performance Link to Sustainability in Times of Crisis is About People
ESG-tilted portfolios and assets have outperformed their non-sustainable counterparts through much of the recent market turbulence, according to MSCI and other index and data providers. In a recent paper, BlackRock says a positive correlation between ESG and performance appears strongest for firms that prioritise people.
26 May 2020
Jordan Secures USD396mn from IMF to Tackle Rising COVID-19 Costs
The IMF has approved USD396mn in fresh funding for Jordan as the Kingdom looks for additional support to plug a growing fiscal deficit stretched even wider by the coronavirus pandemic.
22 May 2020
Nigeria Opens Subscriptions for NGN150bn Sukuk as Shift to Local Market Funding Accelerates
Nigeria’s debt management office (DMO) has opened the book on a NGN150bn (approx. USD385mn) sukuk, part of the government’s wider efforts to shift back to domestic markets for funding in a bid to help relieve pressure on foreign currency reserves.
22 May 2020
External Financing Risks to Turkish Banking Sector ‘Manageable’ - ING
As Turkey braces for the economic impact of the COVID-19 crisis, the banking sector looks likely to be called to play a larger role in facilitating the government’s stimulus plans. But despite a recent spike in NPLs and foreign exchange pressures, the risks to the country’s banks appear manageable, according to a recent report by Oleksiy Soroka, Senior High Yield Credit Strategist at ING.
22 May 2020
Moody's: G20 Debt Suspension Will Only Marginally Ease Pressures on EM Economies
The decision to suspect debt payment on debt to some of the world’s poorest economies will only marginally ease pressures on financing, according to a recent report from Moody’s Investors Service.
22 May 2020
With Widescale Chinese Debt Forgiveness in Africa Unlikely, Focus Shifts to Vulnerable Debtors
China has signalled its willingness to provide debt service relief alongside the G20 by signing onto the landmark agreement in April, a crucial tailwind for several Sub-Saharan African countries. But with wholesale debt forgiveness unlikely and debt reprofiling renegotiations potentially stretching on much longer than expected, attention is now shifting to some of the region’s more vulnerable…
21 May 2020
Sri Lanka’s Central Bank Says the Government Can and Will Pay its Bills, but Investors Aren’t as Certain
The Sri Lankan government has gone on the defensive to counter market speculation about whether unaffordable debt levels and a rapid erosion of its economic fundamentals in the wake of the COVID-19 pandemic will lead to a default.
21 May 2020
OPEC+ Production Cuts Will Place Additional Strain on Nigeria’s Economy
Adhering to the recently agreed OPEC+ oil production cuts will only deepen Nigeria’s economic problems and exacerbate its difficulties with external finances, according to a recent report by Fitch Ratings. Whilst liquidity provided by multilaterals will help ease some pressures in the short-term, macroeconomic strains will continue.
20 May 2020