India received FDI inflows of $7.23 billion up to November 06, while the tax collections grew by 39.5% y/y, according to the Financial Express. Corporate tax saw the biggest y/y increase rising 44.7%, a total of INR 1.01 tn.
Bank of Thailand continued to reject claims that the 30% reserve requirement had affected the bond market. This claim is based upon competitive interest rates and the plan to issue free-floating bonds with a 1-year maturity. This capital control was enforced last year to reduce speculation of the baht..
Ghana plans to issue government bonds to create a market for corporate debt. Government debt was reduced to 42% last year from 70% in 2005 largely thanks to IMF repayment exemptions. S&P gives Ghana a high-risk, high-yield rating of B+.
South Africa’s government unexpectedly recorded a budget surplus for 2007-08 of 0.6% from 0.3% in 2006-7. A widening of the tax base and a rigorous enforcement beat the budget target of ZAR 29 billion. The surplus will mainly be spent on infrastructure in preparation of the 2010 World Cup.
Venezuela’s Finance Minister Rodrigo Cabezas confirmed the government’s intention to lend $500 million to Ecuador. The transaction would be either through bilateral bonds or purchase of government bonds, though the 2007 Ecuadorian budget does not factor in any such plans. There is no consensus among analysts whether such statements are simply rhetoric or concrete plans.
- Information provided by Euromoney group sources.