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Tunisia: Govt seeks fund from central bank to pay foreign debts

Published

3 months ago

February 1, 2024

To settle critical international debts, such as bonds totalling 850 million euros ($920 million) that mature on February 16, the Tunisian government has resorted to asking the central bank for direct financing.

This was announced by Finance Minister Sihem Boughdiri, who revealed that given the lack of external funding, the government asked the central bank for extraordinary direct funding of 7 billion dinars ($2.25 billion) to close a budget shortfall this year, according to sources quoted by Reuters.

Bougdhiri told the parliament finance committee that, “Despite all the difficulties in public finances, Tunisia is committed to paying its foreign debts on time in order to preserve its national sovereignty.”

In 2023, Tunisia settled all of its foreign debts, eliminating any chance that it would default. However, experts predict that 2024 would be extremely challenging since the government will have to pay off $4 billion in foreign debt, which is 40% more than it did in 2023.

The finance committee was informed by central bank governor Marouan Abassi that repaying an 850 million euro loan would affect the currency rate and result in a drop in foreign exchange reserves equal to the amount required for imports for 14 days.

The governor of the bank has cautioned against the central bank’s direct financing of the budget through the purchase of state bonds, a move Saied stated last year would require a rewrite of the legislation.

Abassi has also warned against the significant dangers associated with the government’s plans to require the bank to purchase Treasury bonds, including the potential to push inflation higher and depreciate the value of Tunisia’s currency. Saying that “a Venezuelan scenario will be repeated in Tunisia,” he warned that the action would uncontrollably escalate inflation, which may reach triple digits. He was alluding to the recent economic catastrophe in Venezuela that resulted in hyperinflation.

Tunisia has had a lot of trouble getting outside support from the West ever since President Kais Saied dissolved Parliament in 2021, took almost total control of the country, and started ruling by decree in what the opposition called a coup.

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Nigeria received $1bn tax income from Shell in 2023

Published

5 hours ago

May 8, 2024

Ifeoluwa Dada

Shell Nigeria, a multinational oil company, claims that through the operations of Shell Petroleum Development Company of Nigeria Limited and Shell Nigeria Exploration and Production Company of Nigeria Limited, it exclusively paid $1.09 billion in corporate taxes and royalties to the Nigerian government in 2023.

According to the numbers released in the recently released 2023 Shell Briefing Notes, SNEPCo remitted $649 million, while the SPDC paid $442 million.

Similar payments made by the two firms in 2022 totalled $1.36 billion, according to a statement from Abimbola Essien-Nelson, the company’s manager of media relations.

“These payments are Shell exclusive and do not include those made by our partners,” said SPDC Managing Director and Country Chair, Shell Companies in Nigeria, Osagie Okunbor.

Okunbor explained, “Shell companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses.”

He continued by saying that Shell has been an investor in Nigeria for more than 60 years and that the Briefing Notes provide an update on the state of the companies’ operations in Nigeria for 2023, including SPDC, SNEPCo, Shell Nigeria Gas, and Daystar Power.

He claimed that the studies demonstrated how the businesses kept driving advancement, collaborating closely with communities and stakeholders to support socio-economic growth and offer more affordable, environmentally friendly energy options.

“It is important to emphasise that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses. Our collective focus remains on delivery of safe operations and care for our people,” Okunbor maintained.

VenturesNow

Zimbabwe’s new gold-backed currency now official unit of exchange

Published

18 hours ago

May 7, 2024

Ifeoluwa Dada

Zimbabwe’s Treasury says that the newly introduced gold-backed currency is the official unit of exchange for transactions. It also stated on Tuesday that laws requiring businesses to utilize the official rate would be released soon.

The Zimbabwe Gold (ZiG) has been stable on the official market since its inception in early April, but it has had a shaky start on the black market, where dealers are demanding a premium of 65% of the official rate to purchase dollars.

Additionally, some stores are charging customers who pay in the new currency—while the ZiG is being rejected by informal traders—a premium over the market rate, which is fixed at ZiG 13.6 per US dollar.

“To ensure orderly pricing, the Government will soon be introducing the necessary regulations to ensure that no exchange rate other than the official rate will be used for the pricing of all goods and services,” Finance Minister Mthuli Ncube said in a statement.

Since the ZiG’s inception, the government has been working to keep it afloat; this month, officials launched a campaign against unlicensed foreign exchange dealers.

Zimbabwe, located in southern Africa, abandoned the Zim dollar last month after it lost 70% of its value since the beginning of the year. This is the country’s fourth effort to introduce a local currency in ten years.