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Kenya to utilize $500 million World Bank loan to pay off its bonds

Published

3 weeks ago

June 7, 2024

Kenya’s central bank governor announced on Thursday that the country intended to settle the about $500 million maturing Eurobond with a portion of a loan from the World Bank.

To finance the buyback of a significant chunk of the $2 billion bond that matures in June, the East African nation sold a $1.5 billion international bond in February at a steep cost. Before it, investors had expressed concern that Kenya’s tight public finances would prevent it from being able to repay the bond.

“We do expect some disbursements from the World Bank of about $1.2 billion related to the development policy operations. Part of that … will be used to settle the $500 million of the remaining Eurobond,” Central Bank of Kenya Governor Kamau Thugge told a news conference.

When asked about a World Bank report claiming that another buyback by the government was planned for later this year, Thugge replied that the bank was still in talks with the Treasury.

Despite recent flooding, he said the central bank was sticking to its 5.7% economic growth prediction for this year since the services sector was strong and agriculture was doing well.

Following 5.6% growth in 2023, Kenya’s GDP is predicted to have increased by 5.8% in the first quarter of this year.

The central bank maintained its benchmark lending rate at 13.0% on Wednesday, stating that the present policy would guarantee that inflation would be steady in the foreseeable future around the middle of its target range.

In answer to inquiries over the timing of rate reductions, Thugge stated that the bank would consider outside events before to determining the path its benchmark rate would take at the right moment.

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IMF raises Zambia’s debt to $1.7 billion, approves $570 million installment

Published

1 day ago

June 27, 2024

Ifeoluwa Dada

The Extended Credit Facility for Zambia has undergone a third assessment, and the International Monetary Fund (IMF) has announced that its executive board has approved the immediate disbursement of about $569.6 million.

The Fund’s board also approved a request to boost funding from $1.3 billion to $1.7 billion to assist the nation of southern Africa in dealing with a severe drought that has impacted electricity generation and resulted in agricultural losses.

IMF representative, Antoinette Sayeh stated in a statement that while tackling humanitarian issues brought on by the drought, Zambian authorities have achieved progress on structural and economic reforms.

“Going ahead, coordinated macroeconomic policies, continued efforts to restore fiscal and debt sustainability, and consistent reform implementation would be key to addressing the impact of the drought, preserving macroeconomic stability, and bolstering growth,” said Sayeh, the Fund’s deputy managing director.

Rich in copper After a debt restructuring procedure that lasted more than three and a half years, Zambia managed to pull itself out of default this month. The experience served as a lesson for the G20’s Common Framework mechanism, which is intended to assist low-income nations in addressing unmanageable debt loads.

Extended debt restructuring has hindered investment, limited economic expansion, and put a strain on regional financial systems.

To assist pay off external debt and deal with the drought, Zambia’s finance minister requested last week that the parliament authorize an additional 41.9 billion kwacha, or $1.65 billion, in spending.

On the slopes of the magnificent, active Mount Bromo, the Tenggerese people of Indonesia have been performing an age-old ceremony for decades.

VenturesNow

Egypt must import $1.18 billion worth of petroleum to address power outages— Prime Minister

Published

1 day ago

June 27, 2024

Ifeoluwa Dada

Egypt’s Prime Minister, Mostafa Madbouly, stated in a televised speech on Tuesday that the country needed to import some $1.18 billion worth of natural gas and mazut fuel to put an end to the country’s ongoing power outages, which have been made worse by recent heat waves.

By the third week of July, the administration expects to have received all of the cargoes, at which point it plans to cease power outages for the remainder of the summer, he continued.

To increase its strategic stocks, it has already begun contracting for 300,000 tonnes of mazut worth $180 million, which is anticipated to arrive early next week.

In response to a spike in home electricity demand during the most recent heat wave, Egypt’s government on Monday extended daily power outages to three hours from two hours earlier.

According to Madbouly on Tuesday, these three-hour cutbacks would last until the end of June. After that, they will resume at two hours for the first part of July, to cease entirely for the remainder of the summer.

The impact of the blackouts has sparked a flurry of complaints on Egyptian social media, with some users claiming they have been compelled to buy private power generators.

Teenagers getting ready for the important high school diploma have been especially affected by the issue; some have posted about pupils studying in coffee shops and by candlelight. In the seaside city of Port Said, a wedding hall owner announced that he would convert one of his ballrooms into a study hall.

Since July of last year, most areas have seen scheduled daily power outages lasting two hours due to load shedding caused by declining gas supply, increasing demand, and a lack of foreign cash.

“We had said that we planned to end load shedding by the end of 2024… we do not have a power generation problem or a network problem, we are unable to provide fuel,” Madbouly said on Tuesday.
“With the increase in consumption related to the major development and population increase, there has been a lot of pressure on our dollar resources,” he added.

Without identifying the nation or the gas field, he said that production in a nearby country had completely stopped for 12 hours, disrupting the supply.

Abu Qir Fertilizers, based in Egypt, announced on Tuesday that three of its units had stopped producing due to a disruption in their natural gas supply.