Policy & Government
Nigeria’s Economy Could Contract by 3.4% Unless ‘Radical’ Stimulus Measures are Passed, Finance Minister Says
The Nigerian economy could contract by as much as 3.4% this year unless ‘radical’ stimulus measures are put in place to stem the economic fallout from coronavirus, the country’s Finance Minister said.
7 Apr 2020
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
The End of LIBOR Could Spawn a Heterogeneous Rate Environment, Creating Uncertainty for Banks and CFOs
Despite the considerable momentum in transitioning towards new rates to replace LIBOR ahead of the 2021 phaseout, a forward-looking version of today’s risk-free rates remains elusive, raising the spectre that CFOs and treasurers will have to grapple with a heterogenous and complex bank borrowing environment.
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
Ukraine Passes Historic Land Ownership and Banking Reforms, Paving Way for IMF Aid
Lifting the moratorium on land purchases of farmland in Europe’s agricultural powerhouse has long been seen as a key condition for the Fund’s support and could finally open the door to the European Union for the country.
1 Apr 2020
Loans in Brazil Creep Up as Lockdowns Force Companies to Tap into Credit Markets
Non-earmarked loans increased 1.4% month-on-month in Brazil, while earmarked loans dropped 2.6% in the same period, central bank figures show, with overall loan delinquencies stable at 3% in seasonally adjusted terms.
1 Apr 2020
India Lifts Foreign Portfolio Management Restrictions on Government Securities
The Reserve Bank of India (RBI) has removed restrictions preventing foreign portfolio investors from buying up government securities, a move that may not lead to huge inflows in the current environment – but a crucial step nevertheless in opening up the country’s bond markets.
31 Mar 2020
China’s Banking System Part of the Problem, Not a Solution, to Current Crisis – Rhodium Group
As the epicentre of the coronavirus outbreak, China was the first to suffer its devastating impact as the country went into lockdown and its economy ground to a halt. But will China be able to launch a sustained bounceback, as it did after the 2008 financial crisis? According to Logan Wright, Director and Daniel Hosen, Partner at Rhodium Group, China no longer has the option of launching a…
31 Mar 2020
As Monetary Policy Reaches its Limits, Where Do Policymakers Go Next?
While the magnitude of the challenge facing monetary policy makers has escalated swiftly in recent weeks, the underlying setting – growth driven largely by cheap money, and overreliance on low rates – has been in place for some time, and many market observers have been asking the painful but necessary question: once central banks hit a wall of zero rates, where do we go from there?
31 Mar 2020