Policy & Government
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
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
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
Ukraine Finally Passes Banking Reforms, Clearing a Path for IMF Bailout
Ukraine passed an amendment to its banking rules this week that would prevent insolvent banks from being returned to their previous owners, potentially unlocking billions of dollars in support from the IMF and other multilateral institutions.
14 May 2020
India Announces Whopping INR20tn Stimulus Package
India’s Finance Minister Nirmala Sitharaman has announced part of a colossal INR20tn (USD265bn) stimulus programme aimed at reviving India's faltering economy, including measures aimed at supporting SMEs and the shadow banking sector.
13 May 2020
Chile Likely to Get USD23.8bn Flexible Credit Line from IMF
IMF Managing Director Kristalina Georgieva is likely to approve Chile’s request for a USD23.8bn flexible credit line from the Fund, it said in a statement.
13 May 2020
Egypt Gets USD2.77bn from IMF as Coronavirus Bites
The International Monetary Fund (IMF) has approved a USD2.77bn loan for Egypt to help finance a rapid rise in healthcare spending linked to containing the spread of coronavirus.
12 May 2020
South Africa Details Rise in Government TB Auctions
The National Treasury announced a step-up in local currency borrowing in the form of South African Government Bills (SAGB) and inflation-linked bonds (ILB). But according to Peter Attard Montalto, Head of Capital Markets Research at Intellidex, additional government borrowing in the mid- to long-term may become unsustainable.
12 May 2020
Saudi Arabia Announces VAT Increase, Suspends Cost of Living Allowances for Public Servants
Saudi Arabia announced additional measures this week to prevent the country’s deficit from spiralling out of control in the wake of a steep drop in the price of oil and a fall-off in economic activity.
11 May 2020