hisah wrote:@Scubidu - I still can't figure out why CBK wanted international banks to be the PDs in KE. As for both local and foreign PDs, well with CBK's disorderly monetary policies which makes fund rates hike similar to matutu or bus fare hikes, the exposure to the PDs would be unacceptable. I think this is why this PD idea has quietly gone underground.
As for the mortgage bit, I've just seen this Biz daily article |
http://bit.ly/npITEr | and as long as cement and building & construction is going to the cooler, some mortgage lenders, eh, we will wait for next year...
@ hisah, allow me to intrude on your chat with scubidu.
CBK was opting to use PDs so as to ensure that all auctions are "successful" as in the case with Uganda and US. That way, the government will be sure of getting at least the entire amount that it is seeking to raise.
I am not sure if the idea has gone underground. CBK could probably be working out the finer details now that the treasury auctions continue to be under subscribed.
They also have to figure out how few players (i.e. the PDs) could be able to cause more havoc to the already fragile monetary policy...sort of the way we are having issues with the oil majors.
Hope this helps.
Regards