Policy & Government
Investors Stoked About Record Levels of Argie Paper Despite Sustainability Concerns
Argentina, like many other emerging markets, is looking to take advantage of the calmer market conditions and a pullback in the US dollar seen in the first weeks of 2017 to borrow up to US$13bn from international lenders and investors. The sum has some observers concerned about the sustainability of its borrowing.
13 Jan 2017
With Political Volatility on the Rise, South Africa’s DCM Prospects Remain Challenged
The past year has not been kind to South Africa, with a recent reprieve from a sovereign credit rating downgrade one of the few pieces of good news to greet analysts, the country’s treasurers, CFOs and capital markets professionals. Despite a brief upswing in activity through Q4, there are reasons to suspect the DCM outlook remains challenged to say the least.
12 Jan 2017
Outlook Bright for Loan Financing in Chile’s Renewables Sector
Chile has been one of the major success stories in Latin America over the past decade. As the economy slowed in the past year amid the commodities slump, the Chilean government is looking to attract local and foreign capital to finance an ambitious programme of sustainable energy projects across the country. The country is well positioned to succeed in this endeavour, analysts believe.
11 Jan 2017
In Indonesia’s JP Morgan, Hints of Turkey, Brazil Retribution for Unfavourable Forecasts Persist
As the risk of emerging market capital outflows continues to increases, EM government have become more sensitive to unfavourable reports by international institutions.
10 Jan 2017
Opinion: The Microeconomic Agenda Finally Moves Forward in Brazil
Brazil has spent too much time discussing macroeconomic policies – exchange rate, interest rate, fiscal policy. It was necessary for a long time, particularly when the country was suffering from stratospheric inflation, lack of fiscal control and grave external imbalance. Great advances have been made since the Real Plan (1994), but the debate over the economic direction of the country continues…
9 Jan 2017
Capital Outflows Threaten China’s Transition to Demand-Driven Model
With official agencies admitting to US$540bn in capital outflows since June, and independent estimates standing at twice that, clouds are gathering over the Chinese economy as it transitions from supply to demand-driven model. But some analysts remain upbeat about the country’s long-term prospects.
6 Jan 2017
Ukraine’s “Too Big To Fail” PrivatBank Nationalized, Beckoning Bail-In Questions
Ukraine’s largest lender PrivatBank is to be taken over by the government as liquidity woes threaten client savings. Among other things, the move raises questions about implementation of the Basel III bail-in measures embedded in the bank’s securities.
20 Dec 2016
The Rise of Fintech and Financial Inclusion go Hand-in-Hand in EMs
Few terms are as divisive in the finance industry as “Fintech.” It instils fear in leaders of traditional FIs, makes bankers weary, confuses the general public and excites tech whizzes and young entrepreneurs. But it could also hold the key for emerging markets.
15 Dec 2016
Investors Await Debt Sale as Kuwait Seeks to Plug US$30bn Budget Hole
Ever since announcing plans for a US$10bn sovereign bond program in July, Kuwait has been courting the international debt markets with promise of a seemingly imminent debt sale. With fiscal deficit widening amid oil price slump, the newly elected government is under pressure to cut spending – and may have to go through with the bond sale sooner rather than later.
13 Dec 2016
EU Visa-Free Regime Closer for Ukraine, as Corruption Gnaws at Economy
After months of deliberations, Europe’s politicians and diplomats finally forged an agreement with Ukraine to pave way for visa-free travel in the EU for its citizens. While for Ukraine’s Western-facing portion of the population, three years after the Maidan protests, the deal is a milestone, the short-term prospects of the Eastern European country remain perilous.
12 Dec 2016