ZAMBIA: Plan spells headline risk for miners, no clear upside for IMF deal
On 17 December, President Edgar Lungu launched Zambia’s new Economic Recovery Programme (ERP) 2020-2023. If Lungu’s ERP was meant to please the International Monetary Fund (IMF), the immediate effect was to generate headline risk as Lungu signaled his intention to push for m… Become a member to read the rest of this article Username […]
ZAMBIA: How much hope for an IMF program?
The International Monetary Fund (IMF) said today, 9 December, that it “will be assessing in the coming weeks how the IMF could support the authorities’ reform efforts through a possible Fund program.” Zambia’s request was widely expected, but the prospects for a swift and compr… Become a member to read the rest of this […]
Argentina: Agreement Still Far Away, Busy Summer
The International Monetary Fund mission left Argentina last weekend. The official statement published on Friday by the Washington-based organization suggests that an agreement between the two parties is still distant. In its very particular language, it states that guidelines for… Become a member to read the rest of this article
Argentina: High Hopes on an IMF Program, But the Task Ain’t Easy
• The Government was successful in lowering the FX spread from a peak of nearly 150% in mid-October to 85% by early November. To do this, it relied on selling dollar bonds at 16-17% yields as well as auctioning dollar-linked instruments to provide devaluation coverage. The gove… Become a member to read the rest […]
ZAMBIA: Dragging private bondholders into debt service suspension
The ministry of finance today, 22 September, announced a consent solicitation “to request the suspension of debt service payments for a period of six months from 14 October.” The suspension would apply to three Eurobonds worth USD 2bn maturing in 2022, 2024 and 2027. This would … Become a member to read the rest […]
ZAMBIA: Lungu’s central bank heist?
It is difficult to view the badly timed removal of Bank of Zambia governor Denny Kalyalya as anything other than an assault against the central bank’s independence. A terse IMF statement “noting” the leadership change suggests that relations with the Fund – tentative at best… Become a member to read the rest of this […]
SOUTH AFRICA: Level 4 lockdown till end-May, with some concessions
In an address late on 13 May, President Cyril Ramaphosa said that current “Level 4” lockdown regulations would be maintained countrywide until the end of May, but promised several amendments over the coming days in response to growing criticism of various seemingly irrational loc… Become a member to read the rest of this article
SUB-SAHARAN AFRICA: The African Union’s push for debt restructuring
● The temporary debt moratoria for poor countries announced by the G20 and IMF are designed to buy time as the conversation around comprehensive debt restructuring is only about to take pace. ● The African Union (AU) is pushing to extend debt moratoria to more countries and call… Become a member to read the […]
UKRAINE: Adoption of banking bill crucial for cooperation with IMF
On Wednesday, 13 May, parliament is expected to adopt a bill significantly limiting the chances of former owners of nationalized banks from recovering their assets. The adoption of the law would be welcomed by the International Monetary Fund (IMF), likely leading to an approval o… Become a member to read the rest of this […]
NIGERIA: What is the potential for meaningful reform?
Following IMF’s approval of USD 3.4bn emergency funding, it remains to be seen whether the fiscal crisis engendered by the Covid-19 pandemic may accelerate long-avoided macroeconomic and fiscal adjustments. The government signaled its willingness to engage in pro-market reforms i… Become a member to read the rest of this article