SOUTH AFRICA: Limited lockdown relaxation from 1 May
President Cyril Ramaphosa this evening, 23 April, announced that the government will implement a “risk-adjusted strategy” to easing the current lockdown restrictions beyond Thursday, 30 April, when the current five-week lockdown is due to end. This hardly amounts to a grand reope… Become a member to read the rest of this article Username or E-mail Password […]
SOUTH AFRICA: Go big or go home
● This evening, 21 April, President Cyril Ramaphosa announced a ZAR 500bn (USD 26bn) economic stimulus plan, a massive step up from the meager fiscal and tax interventions announced to date. ● While the details of the speech will be unpicked over the next few days, we outline ke… Become a member to read […]
LATAM PULSE
From this week, Mexico’s state oil company Pemex is a “fallen angel” following the latest downgrade to its credit ratings. Also this week, Argentina’s creditors will be wanting to see flexibility ahead of debt talks, while domestically, the government weighs up how to relax lockd… Become a member to read the rest of this article
MOZAMBIQUE: IMF funding expedited, LNG delays worsening
● Financial support from the International Monetary Fund (IMF) is being expedited, albeit under emergency facilities rather than a full program. ● However, the LNG outlook is turning from bad to disastrous amid speculation that ExxonMobil could postpone bringing its Rovuma LNG p… Become a member to read the rest of this article
ARGENTINA: Facing the default cliff again
Finance Minister Martin Guzman yesterday, 16 April, unveiled the broad parameters of Argentina’s debt restructuring offer. The offer involves a three-year debt moratorium alongside a 62% reduction in interest payments; these would only resume at 0.5% in 2023 before rising in subs… Become a member to read the rest of this article
GHANA: IMF support secured, but contingent liabilities persist
On 13 April, the IMF Executive Board approved the disbursement of USD 1bn under the Rapid Credit Facility (RCF), which is by far the largest disbursement from this facility to any country during the Covid-19 crisis so far. The funds will enable the government to address Ghana’s s… Become a member to read the rest […]
SUB-SAHARAN AFRICA: Debt questions loom large amid pandemic fallout
● Lockdowns and curfews are still being stepped up in response to rising Covid-19 numbers, and the real effects of economic disruption are only just playing out. ● Countries are queuing up for rapidly depleting IMF emergency support facilities. While African nations might receiv… Become a member to read the rest of this article
COLOMBIA: IMF backstop is positive but oil price vulnerability remains headache
Despite publicly contemplating a loosening of physical distancing measures, President Ivan Duque on 6 April announced that they would be extended until 27 April; the quarantine started on 25 March. The decision does not just reflect the World Health Organization (WHO)’s warnings … Become a member to read the rest of this article
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 […]
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 […]