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Kenya seeking $1.5 billion UAE commercial credit

Published

2 months ago

October 18, 2024

According to Finance Minister John Mbadi, Kenya is in talks with the United Arab Emirates for a $1.5 billion commercial loan with a seven-year tenor and an interest rate of 8.25%.

The country of East Africa is attempting to broaden its funding sources in the wake of violent demonstrations that compelled the administration to renounce a series of tax increases and postpone International Monetary Fund (IMF) payments. The potential loan was revealed by Reuters last month.

Mbadi said during a press conference, “This loan is cheaper than the Eurobond we borrowed at 10.7%,” alluding to a $1.5 billion bond issued in February to partially repurchase a $2 billion Eurobond that was about to mature.

According to Mbadi, Kenya has successfully responded to the IMF’s enquiries over the nation’s ongoing funding program, which was put on hold due to the protests and the finance bill’s abandonment. Next Monday, he will meet with the fund again in Washington, DC.

“After that, the funds will be disbursed,” Mbadi said.

The staff review of Kenya’s program will be discussed at the IMF executive board meeting on October 30, according to a report by Bloomberg News, which cited persons with knowledge of the situation.

The Fund stated that the date was not yet established when questioned about the report.

“No date has been confirmed yet for the Board’s deliberation. We will communicate the date and related information in due course,” it said.

When the existing fund program expires next year, Kenya will want to seek out a new one, according to Mbadi, but he also demanded more reasonable budgetary targets to support future lending.

“I completely believe some of the targets we have set with the IMF were unrealistic,” he said, citing a target of lowering the fiscal deficit to 3.8% this financial year from 5.2% in the year that ended in June, which has since been removed.

Related Topics:CREDIT Featured Kenya UAE

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Moroccan annual inflation rises to 0.8% in November

Published

23 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”