GlobalCapital
Article Archive
--------
-
EM debt pressures build as IMF calls for ‘early’ action on restructuring
With 2020 already a busy year for emerging market bond restructuring, the head of the IMF has publicly urged countries to act decisively and early if they face a debt crisis that looks more likely after the G20 did not say it would address countries’ mounting burdens.
-
Post-Covid world will demand ‘new more humane’ capitalism
While most financiers are focused on dealing with the immediate impact of the pandemic, critics of capitalism are focused on the world after Covid and are determined that wealthy tackle inequality, financial support for the poor, and Earth’s worsening climate.
-
IADB to roll out hurricane clauses as small state pleas gain traction
The Inter-American Development Bank could soon become the first multilateral lender to offer its borrowing countries the option to defer debt payments in the event of natural disasters, as Caribbean policymakers’ calls to make debt more resilient to climate events gain traction.
-
IMF will need Bank’s help to fulfil climate ambition
Climate has been a blind spot for the IMF but that could be about to change. Meanwhile, there are calls for the Fund and the World Bank to work together on climate.
-
Biden victory to boost Asia but China tensions to remain
With US presidential elections nearing, experts say the benefits for Asia and emerging markets of a change in leadership are many – as are the challenges. But whoever wins US/China tensions are likely to remain on the boil.
-
Indonesia uses ‘all available resources’ for Covid response
Indonesia has found many ways to raise new finance, but its head of budget financing explains how it was able to attract investors while not outlining an explicit use of proceeds during the coronavirus pandemic
-
Malpass begins to thaw on climate change
Sceptics feared that Trump appointee David Malpass would reverse the World Bank's direction on climate change as president, but 18 months into his term they are starting to see evidence that he is quietly coming round to the multilateral's green agenda
-
Asia’s policymakers look for renminbi push
Tough policies from the US have somewhat undermined the use of dollar as an international reserve currency, with experts saying there is rising appetite in Asia to give the renminbi a more global role.
-
Fiscal recovery at peril in LatAm amid rising political and social anger
Unrest across Latin America in the wake of the devastating impact of Covid-19 will make it harder from governments to push through spending cuts and tax rises needed to restore their public finances especially in the face of double-digit employment.
-
Central banks and climate change: Lagarde becomes leader
Long used to scanning the horizon for risks, central banks have belatedly woken up to the biggest one of all — climate change. Monetary policy has so far been ignored — but the European Central Bank, until now on the fringes of this issue, is plunging in
-
Debt Management Office of the Year, MENA
Fahad Al-Saif, Saudi Arabia The Gulf state is extending its curve and sourcing new channels of funding to meet its fiscal objectives.
-
Central Bank Governor of the Year, MENA
Ziad Fariz, Jordan Jordan was swift to provide liquidity and bring in a package of stimulus measures when the crisis struck.
-
MENA Finance Minister of the Year
Mohammed al Jadaan, Saudi Arabia Saudi Arabia’s smart, innovative and much-needed fiscal response to Covid-19 has gone down well with investors.
-
India’s Covid battle: it’s only the beginning
India’s economic future is on shaky ground, after the Covid-19 pandemic dealt a blow to the country’s already faltering growth. The impact of the fallout is likely to be felt for years to come — unless the government quickly changes tack.
-
Ensuring continuity through difficult times
Amid exceptionally challenging global conditions, Egypt’s largest private sector bank revealed resilient performance in 2020, delivering top-line growth.
-
EIB makes climate finance mainstream as taxonomy unlocks standards
The European Union’s new green grammar book is multiplying the impact of climate finance. From funding to lending to innovation, the EU Taxonomy is helping embed climate throughout the European Investment Bank’s activities.
-
Ukraine hopeful of unblocking $5bn IMF loan amid legal rows
A legal ruling that appears to cast doubt on the independence of Ukraine’s anti-corruption unit has delayed a loan from the IMF and comes in the wake of a row over a decision to ‘reprimand’ two independent members of the country’s central bank
-
EU bid to tie recovery fund to rule of law triggers row with Eastern bloc
The German-led EU Council wants to make payouts from the EU recovery fund dependent on a commitment to abide by the rule of law, a demand that has angered Poland and Hungary. The outcome is expected to be a typical Brussels fudge.
-
A tale of two sovereigns: negotiation attitudes foretell differing fortunes for LatAm restructurers
Though Ecuador provoked admiration and Argentina exasperation as each restructured billions of dollars of bonds this year, the final agreements were not substantially different. However, the contrasting approaches to negotiations could be indicative of each country’s chances of success.
-
‘Build back better’ campaigns will have to fight worsening inequality
In the facing of rising inequality in the wake of the Covid-19 pandemic, leading policymakers in the United and Europe are starting to set out the elements of a new policy architecture needed to focus on issues such as childcare, the impacts of climate change and the need for infrastructure investment
-
Debt relief extension ‘not enough’ as private sector remains deaf to G20 pleas
The G20 announced a six month extension to the debt suspension its members agreed to in April, yet it could do nothing but petition private sector creditors to take part — an appeal that appears to be falling on deaf ears
-
Morocco action plan to support recovery from pandemic
Morocco is one of the few African countries to have successfully tapped international debt, and now the kingdom’s finance minister is focused on strengthening social safety nets to help Moroccans share in its post-virus recovery.
-
Cambodia facing microfinance meltdown threat
International financial institutions helped Cambodia build up a microfinance sector whose loans now amount to a third of the country’s GDP. But amid fears that growth is unsustainable experts are worried about an imminent collapse that would be devasting for the emerging economy
-
Sub-Saharan Africa Finance Minister of the Year
Tito Mboweni, South Africa
-
Sub-Saharan Africa Central Bank Governor of the Year
Ernest Kwamina Yedu Addison, Ghana.
-
China leads the way with digital currency, but other central banks have plans
China looks to be first out of the blocks with a central bank digital currency, but experts say it appears to be a more domestic initiative compared with projects being collaborated on by the world’s other leading institutions
-
Geopolitics and pandemic uncertainty to dominate oil market in 2021
Oil prices, which are key to the public finances of many MENA states, have recovered somewhat since their abrupt slump earlier this year but experts are not optimistic they will regain the levels seen at the start of 2020
-
Debt Management Office of the Year CEE
Yuriy Butsa, Ukraine
-
Middle East set for uphill battle in 2021 as oil volatility dominates
The drop in oil prices this year, fuelled by lower global demand due to coronavirus lockdowns, has devastated Middle East governments’ budgets, causing deficits to balloon. Despite measures being taken to fill spending gaps, experts say the future will be rocky if demand for oil stays below pre-crisis levels.
-
A virtual accord? Major central banks flex monetary policy muscles
Central banks from Washington to Frankfurt via London are revising their strategies in light of stubbornly low inflation. A repeat of the 1980s Plaza and Louvre accords is unlikely this week but there is mutual movement towards looser policy
-
EIB emphasises development as Covid exposes global economic weakness
The European Investment Bank isn’t letting the Covid-19 pandemic divert it from its common purpose, but is focusing it more clearly than ever on the development sphere.
-
‘Slippery slope’: EM central banks warned of debt monetisation risks
The scale of the economic crisis has forced central banks to adopt unorthodox policies such debt monetisation — the central bank buying bonds to fund the governments’ spending needs. But some fear emerging markets will open themselves up to exchange rate pressures
-
Frontier markets appeal to IMF to help recovery
Frontier economies have been hard hit by the Covid pandemic and some of their central bank governors believe that the IMF needs to fine tune its loan instruments to give help to those that are hanging on by a thread
-
World Bank urged to channel shareholder money to cut poor country debt
The World Bank says it cannot follow its own advice to member countries to cancel debts to poor economies for fearing of losing its AAA status, but a new report says it can bypass that by setting up a new vehicle
-
Deputy minfin denies budget is ‘austere’ as IMF urges Mexico to spend
Mexico finds itself in the unusual position of being told by the IMF to be less frugal, prompting the country’s deputy finance minister to defend the recent budget, pointing out that Mexico does not have the fiscal room for more spending.
-
CEE Finance Minister of the Year
Tadeusz Kościński, Poland
-
CEE Central Bank Governor of the Year
Elvira Nabiullina, Russia
-
EBRD marks out green goals and Africa expansion for next five years
With a new president elected, the EBRD is setting out its plans for green investment and its pivot into Sub-Saharan Africa.
-
Reform India’s banks now, demands Acharya, or risk ‘zombie lending’
The measures taken by India’s central bank to revive economic growth may all be for nothing unless the authorities put reform of the country’s troubled banking sector at the top of the agenda. Experts point to the need for recapitalisation and even privatisation of public sector banks.
-
China versus the rest: Africa debt relief offers splits opinion
After 10 years of lending by Chinese government, banks and contractors to Africa, the Asian country is being praised for its co-operation with the rest of the G20 on debt relief. But its failure to include China Development Bank has irked multilateral lenders
-
Financial stability risks loom beyond short-term calm, warns IMF
The IMF believes that the financial system is in better shape than March when it had “horrible expectations” according to financial counsellor Tobias Adrian. But he tells GlobalMarkets he does see weak banking systems in some countries
-
China woos Asean countries as US turns on the charm
China has launched a charm offensive aimed at countries in southeast Asia in a bid to deepen its ties with a region that has increasingly seen more attention from the US.
-
Covid corruption: IMF issues stern warning to Sub-Saharan Africa recipients
The IMF has been praised for its swift action in disbursing $16bn to Sub-Saharan African countries, but experts are warning that the fund and governments must watch out for a repeat of the misuse of monies after the 2013-2016 Ebola epidemic.
-
Sustainability-linked bonds could crack transition nut in EM
The recent burst of sustainability-linked bonds could catch on in the emerging markets because they can solve the problem of constructing sustainable financings for companies that are not green yet, but in transition.
-
South Asia Central Bank Governor of the Year
Fazle Kabir, Bangladesh Bangladesh has done what it can to limit the damage to a fragile economy – including a cut to a reference rate that has not moved for almost two decades.
-
South Asia Finance Minister of the Year
Nirmala Sitharaman, India India had limited options for fiscal intervention, but its finance minister has carefully focused on the real priorities.
-
Central Bank Governor of the Year, Latin America
Mario Marcel Cullell, Chile Well-earned credibility allows bank to broaden policy toolbox amid series of shocks.
-
Debt Management Office of the Year, East Asia Pacific
Luky Alfirman, Indonesia Indonesia’s debt management team has taken a calm, considered approach to an unprecedented situation.
-
East Asia Pacific Central Bank Governor of the Year
Yi Gang, China At the PBoC, the governor knows that there are times when less is more.
-
China shines as Asia scrambles to respond to Covid-19
The coronavirus has forced dramatic fiscal responses from Asian governments. But it has also cast a spotlight on crucial differences between economies in the region — with the likelihood that China will emerge from the crisis even stronger.
-
Bretton Woods twins keep the multilateral flame alive
The devastating impact of the coronavirus pandemic on emerging and developing countries has put the International Monetary Fund and the World Bank at the centre of the fightback. This week’s annual meetings must set a course for 2021
-
EIB 2020: When ambition becomes transformation
The European Investment Bank took a bold step when it announced in November last year that it would end funding for fossil fuel projects, alongside a slew of ambitious targets. This year has been about putting in place the roadmap for its transformation
-
IMF accused of imposing ‘exactly wrong’ austerity advice for bailouts
Development campaigners are worried the IMF is pushing countries hit by Covid to implement austerity measures, although these are not traditional conditions. The IMF says its message is ‘spend what you need, but keep the receipts’.
-
Finance ministers demand more ambition in climate coalition
Meeting on the virtual sidelines of the annual meetings this week, members of the Coalition of Finance Ministers on Climate Change pushed for greater ambition, including making the Helsinki Principles binding.
-
Debt Management Office of the Year, Latin America
Herman Kamil, Uruguay Uruguay picks the right moment to issue debt — and keeps a local focus.
-
Latin America Finance Minister of the Year
Richard Martínez, Ecuador Against all the odds, a debt restructuring and IMF programme in record time.
-
East Asia Pacific Finance Minister of the Year
Sri Mulyani Indrawati, Indonesia Indonesia has responded to Covid-19 in a robust fashion, guided by a finance minister who won’t take her eye off the long-term plan.
-
Covid to claim first African sovereign casualty as fears rise of Zambia default
Zambia looks set to be Africa’s first sovereign to default due to the coronavirus crisis. This already complex situation could be being made even more complicated by China — a big bilateral lender to Zambia.
-
Bank of China supports deepening CEE-China cooperation and development in the financial industry
