NIGERIA: OPEC+ production cuts would be credit negative, if obeyed
During the 9 April OPEC+ meeting, Nigeria apparently consented to cut production to 1.4 million barrels per day (mbpd) in May and June, and to 1.5 mbpd from July until the end of the year. How sincere the government is about such steep production cuts will be swiftly put to a tes… Become a […]
ZAMBIA: Restructure or else…?
● Zambia’s payment position has steadily deteriorated, but the pandemic-related shock may well prove to be the tipping point, as suggested by recent news that the government will seek to restructure USD 11.2bn worth of external debt. ● The next Eurobond coupon payment worth U… Become a member to read the rest of this […]
SOUTH AFRICA: Double trouble
● South Africa’s currency and fiscal woes have taken another hit from Fitch’s 3 April downgrade of the sovereign’s long-term foreign and local currency credit ratings from BB+ to BB, with a negative outlook. ● Although President Cyril Ramaphosa’s decisive handling of the pande… Become a member to read the rest of this article
ARGENTINA: Buying time on foreign law debt as economic storm clouds darken
The government last night, 6 April, confirmed that it would postpone payments on around USD 8.4bn in USD-denominated debt issued under local law. The move is designed to gain space to keep on making foreign currency payments issued under non-Argentine law and avoid a wider defaul… Become a member to read the rest of […]
MOZAMBIQUE: More than one emergency
In a late-night session on 31 March, the National Assembly approved President Filipe Nyusi’s state of emergency declaration, which applies from 1 to 30 April, in response to the Covid-19 pandemic. However, Mozambique now faces multiple emergencies: not only the pandemic itself bu… Become a member to read the rest of this article
ECUADOR: Guayaquil outbreak to create new debt pressures and political risks
The government is struggling to contain the Covid-19 outbreak in the local epicenter of Guayas province, whose capital – Guayaquil – is the country’s economic hub. As of this morning (local time) on 1 April, there were 2,748 confirmed Covid-19 cases across the country, and 93 dea… Become a member to read the rest […]
ECUADOR: Government acts to ward off default siren calls
The government has fended off pressure to declare a debt moratorium and is instead set to secure additional external funding that will help in the struggle to contain the COVID-19 outbreak and keep the acutely fragile economy afloat. However, pressure to suspend debt payments hig… Become a member to read the rest of this […]
MOZAMBIQUE: IMF mission delayed
The International Monetary Fund (IMF) has postponed its planned negotiating mission to Maputo on account of the COVID-19 pandemic. While this injects uncertainty into the question of timing, both the IMF and government seem intent on concluding a new financing deal eventually. … Become a member to read the rest of this article
MOZAMBIQUE: Return of IMF financing on the horizon
● The International Monetary Fund (IMF) has confirmed that it has received a formal request from Mozambique for a new Policy Support Instrument (PSI) and Stand-by Credit Facility (SCF). ● A return of IMF funding, which was suspended in 2016, would be a major step towards resto… Become a member to read the rest […]
GHANA: Akufo-Addo’s costly popularity boost
President Nana Akufo-Addo’s announcement last week that he would run in the 7 December presidential election comes as no surprise. The weakness of the opposition makes Akufo-Addo the frontrunner, rather than his popularity or the impressive economic headline numbers. In this rega… Become a member to read the rest of this article