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Coronavirus

External Financing Risks to Turkish Banking Sector ‘Manageable’ - ING

As Turkey braces for the economic impact of the COVID-19 crisis, the banking sector looks likely to be called to play a larger role in facilitating the government’s stimulus plans. But despite a recent spike in NPLs and foreign exchange pressures, the risks to the country’s banks appear manageable, according to a recent report by Oleksiy Soroka, Senior High Yield Credit Strategist at ING.

22 May 2020

Bips & Pieces CEE & Turkey Economics and Markets

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

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

Oil Market is Rallying ‘Much Too Soon’ – ING

Oil markets continued to make a modest recovery this week amidst moves to ease lockdown restrictions in a number of countries worldwide. But a sustained recovery could be some way off, according to Warren Patterson and Wenyu Yao, commodities economists at ING.

19 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

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

RBI to Increase Borrowing, But Unclear How Else Government Will Raise Funds

The Reserve Bank of India (RBI) is upping its borrowing requirements by more than 53% to INR12tn for the financial year, but it's unlikely to be enough to finance the government's ambitious stimulus programme.

12 May 2020

Sustainable Bond Issuance Falls, But Social Bonds on the Rise – Moody’s

Total volumes of sustainable bond issuance are set to fall as the COVID-19 pandemic creates a rocky environment for borrowers, according to Matthew Kuchtyak, AVP-Analyst at Moody’s. Sustainable bond issuance is likely to total USD325bn this year, a downward revision of USD75bn from the USD400bn forecast previously.

11 May 2020

Private Sector Deleveraging Required to Plug EM Current Account Deficits - IIF

As countries worldwide are forced to spend unprecedented amounts to counter the economic and health effects of COVID-19, fiscal and current account deficits are set to rise globally. Rocky market conditions mean most EM sovereigns will struggle to access external funding, however, leaving the local private sector to pick up the slack, according to a recent report from the Institute of…

7 May 2020

Lebanese Political Parties, For Now, Agree to Approach IMF

Lebanon is a step closer on the path towards economic reform, as the government agrees to approach the IMF for support. Hezbollah finally withdrew their opposition to the country requesting funds from the multilateral, which could help the struggling economy, but other political spats risk delyaing the process.

5 May 2020

Gold Prices Surge Due on Pandemic Disruption

The ongoing volatility caused by the COVID-19 pandemic has seen the price of gold become dislocated, as it has avoided becoming victim to the demand shocks that have hit the price of other commodities.

4 May 2020

Fall in SAMA Assets Exceeds Expectations - HSBC

Saudi central bank reserve assets fell by around USD24bn in March, according official data. Accounting for non-reserve holdings, net foreign assets fell by just under USD27bn throughout the month.

4 May 2020

Aramco Appears Well-Placed to Weather the COVID Storm, Analysts Say

Plummeting oil prices resulting from a drop-off in global demand and a simmering price war with Moscow has put a severe strain on Saudi Aramco’s balance sheet in the short-term. But in looking further ahead, the company appears well-placed the weather the current storm.

1 May 2020

COVID-19 Poses Severe Threat to South Africa’s Banking Sector - Fitch

The pandemic poses ‘significant downside risks’ to South African banks, according to Fitch Ratings, as asset quality and earnings face downward pressure.

30 Apr 2020

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