Macro
Jordan Secures USD396mn from IMF to Tackle Rising COVID-19 Costs
The IMF has approved USD396mn in fresh funding for Jordan as the Kingdom looks for additional support to plug a growing fiscal deficit stretched even wider by the coronavirus pandemic.
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
Scotiabank Says Brazil’s Lessez-Fair Lockdown Could Bring Long-Term Pain for Short-Term Gain
As Brazilian retail sales surprise on the upside, analysts at Scotiabank warn that lack of a clear policy and lessez-fair domestic lockdown could lead to a long and difficult recession down the road.
20 May 2020
Fitch Sees Record Sovereign Defaults in 2020
The severe shock from the coronavirus pandemic is likely to lead to a record spike in sovereign defaults as risks grow for countries with weak fundamentals and heavy exposure to commodities and tourism, according to Fitch Ratings.
15 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
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
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