Policy & Government
Saudi Banks’ Margins Squeezed by Fed Cut – Fitch
The US Fed’s recent decision to cut interest rates by a further 50bp is placing additional pressure on the margins of Saudi Arabia’s banks, according to a recent report from Fitch Ratings. Following the lead of the Fed, the Saudi Arabian Monetary Authority (SAMA) cut its repo rate on Monday by 50bp, bringing rates in the Kingdom to an all time low of 1%. But the Kingdom’s banks will feel the…
20 Mar 2020
Downgrade of South African Sovereign Now 'Probable' – Nedbank Analysts
As the ongoing COVID-19 pandemic collides with a crash in the oil price and a broader deceleration of growth, the South Africa sovereign looks set to struggle. According to Jones Gondo, Senior Credit Analyst and Nthulleng Mphahlele, Analyst at Nedbank, the risk of the big three rating agencies downgrading South Africa has been significantly heightened.
19 Mar 2020
GCC Countries Race to Introduce Stimulus Measures to Support Economy and Boost Lending
GCC countries led by Saudi Arabia and the United Arab Emirates this week introduced a raft of stimulus measures to support businesses and the banking sector.
19 Mar 2020
Emerging Economies to see Boom in Off-Grid Renewables – Wood Mackenzie
Enormous strides have been made towards developing effective and affordable ways of generating power over the past decade, with technological innovation enhancing the viability of off-grid solutions. For emerging economies, a boom in off-grid energy will likely enhance access to swathes of the population, argues Wood Mackenzie. For state utilities, however, off-grid solutions could be…
18 Mar 2020
Debt Capital Markets Are Crucial to Success of Saudi Vision 2030, but Some Bankers Say it's Underutilised
Vision 2030, Saudi Arabia’s ambitious plan to transform the economy and diversify away from oil production, has seen the country develop the largest project pipeline in the region. But the government’s apparent reluctance to raise funds through the debt capital markets risks undermining Vision 2030, according senior investment bankers based in the region.
18 Mar 2020
Kazakhstan Bucks Trend as Other Central Banks Follow US Fed in Slashing Rates
Central Asian republics have scrambled to raise rates as their currencies plummeted following a double blow from COVID-related market turmoil and a collapse in the oil price.
17 Mar 2020
Do Central Banks Need New Guidelines Around How They Communicate?
The past 20 years has seen central banks assume far more prominence in day-to-day economic discourse and decision-making than many are likely to appreciate, and alongside that huge transformation came an equally significant shift in how these emboldened titans communicate with the market. But when it comes to managing the market’s expectations, arguably the fundamental role central banks play…
17 Mar 2020
Lebanon’s Default Barely Heard Amid Global Markets Rumbling and Tumbling
It came not with a bang, but a whimper. The Middle Eastern country’s failure to pay USD1.2bn on its March bond appears to put the ball in creditors’ court. But as coronavirus-linked turmoil and the collapse of oil prices dominates the headlines, Lebanon seems to be way down the pecking order on the elongating list of investors priorities.
11 Mar 2020
Kenya Roads Board Bond ‘Potential Game Changer in Domestic Debt Investment’ – Sterling Capital
Kenya Roads Board (KRB) is set to issue a KES150bn bond on an annual basis over the next five years. The proceeds of the bond will be used to finance infrastructure development.
11 Mar 2020
Downgrade Would Lead to Exponential Growth in Borrowing Costs – Rand Merchant Bank
The possibility of a Moody’ downgrading the South African sovereign has long been under discussion. But according to Ettienne Le Roux, Chief Economist and Elena Ilkova, Credit Research Analyst at Rand Merchant Bank, a rating downgrade could provoke a much more severe reaction than the simply exclusion of the country’s debt from global indices.
9 Mar 2020