Musings From Abroad

US lawmakers want release of Binance executive in Nigerian custody

Published

6 months ago

June 22, 2024

Due to his deteriorating health, two United States legislators have requested the US embassy in Nigeria to press for the release of Tigran Gambaryan, the executive of Binance who is currently imprisoned, on humanitarian grounds.

Gambaryan, the executive director of Binance, who oversees financial crimes compliance for Binance, has been detained since February on suspicion of money laundering.

Last Monday, the tax evasion accusations against him and the other officer, who escaped detention in Nigeria in March, were withdrawn.

During a visit to the West African nation on Thursday, Republican French Hill of the US House of Representatives and Democrat Chrissy Houlahan paid Gambaryan a visit at the Kuje prison in Abuja.

An Abuja court decided last month that Gambaryan, who is representing Binance, may go to trial in the case about tax evasion. Binance CEO Richard Teng had claimed that Nigeria was creating a dangerous precedent when its executives were invited to the nation and later jailed as part of an anti-crypto campaign. The business is fighting the proceedings because it allegedly launders money and avoids taxes.

“We have asked our embassy to advocate for a humanitarian release of Tigran because of the horrible conditions of the prison, his innocence and his health,” Hill said in a video he posted on social media site X, alongside Houlahan.

During the jail visit, according to Houlahan, they discovered that Gambaryan was living in substandard conditions and that “his health is not very good and he was also clearly under a lot of stress.” Gambaryan was previously reported by Binance to have pneumonia and malaria.

The money laundering trial for Gambaryan, who is accused of stealing, was postponed until July 1st. Gambaryan appeared in court on Friday.

Nigeria has laid the blame for its currency problems on Binance. The country’s currency sank to a record low as a result of persistent dollar shortages, and cryptocurrency websites became the preferred means of trading the naira.

Musings From Abroad

World Bank doubts Ethiopia-IMF debt assessment

Published

2 days ago

December 24, 2024

Ifeoluwa Dada

Some officials of the World Bank have questioned if the study supporting Ethiopia’s debt restructuring may be “faulty” after criticising an evaluation of the country’s finances done with the International Monetary Fund (IMF).

World Bank consultant, Brian Pinto, and its head economist, Indermit Gill, evaluated the July Debt Sustainability Analysis (DSA), which was created by the IMF and employees of the International Development Association (IDA), the World Bank’s fund for the world’s poorest countries, in an internal document seen by Reuters.

According to the authors, Ethiopia is experiencing a short-term cash shortage rather than a long-term solvency problem, which is a source of conflict between the government and holders of its $1 billion international bond that is in default, based on the DSA.

“We found that the bondholders have interpreted the DSA correctly, but the DSA itself may be faulty,” Pinto and Gill wrote in the paper from earlier this month. “The disagreements about Ethiopia’s debt sustainability will be repeated as other countries become debt distressed.”

A World Bank representative responded to a question regarding the paper by saying, “We generally don’t comment on internal deliberations between the World Bank and the IMF or any of our partner institutions.”

As part of the most recent review of the Fund’s loan program, Ethiopian State Finance Minister Eyob Tekalign told Reuters that the DSA had just been reviewed by IMF and World Bank teams and that the status had not changed significantly.

Without providing further details, an IMF representative acknowledged that its officials travelled to Ethiopia in November for the second review of the Fund’s loan program and added that every review incorporates an update to the DSA. Regarding the memo, the spokeswoman remained silent.

A request for comment from Pinto and Gill was not answered. There has been a tense confrontation between Ethiopian officials and bondholders.

The main point of contention is whether, as bondholders contend, Ethiopia is experiencing a liquidity shortage that may be resolved by rescheduling debt or if it is experiencing longer-term financial issues that necessitate haircuts, or debt write-downs.

According to the DSA, certain statistics on exports indicated pressures on both liquidity and solvency.

It was reported in October that the DSA indicated a solvency problem and that writedowns were inevitable. Investors have criticised a government proposal that suggests an 18% haircut in addition to rejecting the evaluation.

Musings From Abroad

Swiss company Mercuria partners Zambia’s IDC in new metals trading firm

Published

5 days ago

December 21, 2024

Ifeoluwa Dada

According to a statement released by Swiss commodities trader, Mercuria, on Thursday, it has established a metals trading arm with Zambia, the second-largest producer of copper in Africa.

The trading unit is jointly owned by Mercuria and an arm of Zambia’s Industrial Development Company (IDC), and its purpose is to allow Zambia to engage directly in the minerals trading market.

The joint venture “envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage,” according to a statement from Cornwell Muleya, the CEO of IDC.

The southern African nation wants to increase copper output to roughly 3 million metric tonnes within the next ten years, and in 2023, it produced roughly 698,000 tonnes of copper, down from 763,000 metric tonnes the year before.

In June, the Zambian government announced that it would establish a minerals trading unit.

Investors including First Quantum Minerals and Barrick Gold are ramping up production, with output set to receive a further boost once Vedanta Resources’ Konkola Copper Mines restart activity.

“Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market,” Kostas Bintas, Mercuria’s global head of metals and minerals, said in the statement.