Policy & Government
Mexico Growth Outlook Sinks as Focus Shifts to Healthcare, Support for Most Vulnerable
The impact of the COVID-19 pandemic is expected to generate a significant GDP contraction, BBVA analysis indicates, as care and support for the most vulnerable should be given priority over immediate fiscal objectives.
25 Mar 2020
The Gambia Secures USD47.1mn in Credit from IMF
The Gambia has secured a USD47.1mn extended credit facility (ECF) from the International Monetary Fund (IMF) this week, with the proceeds from the funding going towards the development of policies to help contain the spread of COVID-19 and mitigate its economic impact.
24 Mar 2020
UAE Bank to See Asset Quality Weaken – Fitch Ratings
The impact of the coronavirus is being felt by countries and sectors worldwide, but the UAE is particularly sensitive as key sectors like oil & gas and logistics feel the disruption more severely. For the country’s banking sector, the pandemic looks set to place additional pressure on banks’ credit profiles by reducing asset quality, according to a note from Fitch Ratings.
24 Mar 2020
Which SSA Economies are Most Vulnerable to COVID-19?
Africa appears so far – at least according to official statistics – to have contained the spread of COVID-19, with SSA reporting fewer than 300 confirmed cases. But this does not mean the region will be able to ride out the storm and avoid the economic and health impact seen elsewhere.
24 Mar 2020
Indonesia Inks USD300mn Financial Reform Deal with World Bank
The World Bank has approved a USD300mn loan deal with Indonesia that will see the South Asian country fund financial sector reforms.
23 Mar 2020
Do Current Valuations Compensate Investors for Increased Default Risk?
As COVID-19 and the ongoing oil price spat between Riyadh and Moscow continues to wreak havoc on markets across the world, the spreads on high yield assets in both EM and DM have widened significantly. With many companies seeing their revenues take a beating at countries go into lockdown, and with many sovereigns juggling their need for fiscal stimulus with already lopsided public finances, Iain…
23 Mar 2020
Ecuador, Other Frontier Sovereigns Could Follow Lebanon as Spreads Widen
Huge capital outflows from emerging and frontier markets and surging borrowing costs have put a number of sovereigns in the “high risk” zone, but IMF support can provide some consolation.
23 Mar 2020
As Flight to Safety Escalates, Fiscal Stimulus Prospects Vary Widely Across Emerging Markets
Total spread widening for the EMBI Global Index has reached a remarkable 286bp, according to ING, more than the 241bp monthly change seen at the peak of the 2008 crisis. Fiscal injections will be required across the board, but continued access to the debt capital markets will be instrumental for countries to pursue fiscal easing to soften the blow from the economic slowdown.
20 Mar 2020
Latin America’s Governments Rush Through Stimulus Measures to Counter Pandemic Impact
Brazil, Argentina, Peru and Colombia have announced urgent fiscal stimulus measures to compliment monetary policy moves introduced over the past two weeks to sooth markets after a huge spike in volatility.
20 Mar 2020
Central Bank of Kenya Likely to Cut Rates by 25-50bps – Sterling Capital
Ahead of the next Monetary Policy Committee meeting of the Central Bank of Kenya on Monday 23rd March, Sterling Capital predicts a rate cut of 25-50bps.
20 Mar 2020