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CBK Ammendment Bill - Vintage Kabando!
Rank: Elder Joined: 12/17/2009 Posts: 3,583 Location: Kenya
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(a) electronic means; and
(b) lower minimum investment denominations”
that sounds decent especially (a), at least ka 30k would be good, but more so to demystify the whole money investment thing (sijui ni jargon gani hutumika hapo).
kuna siku nilikuwa na njaa ya ku-invest, checked out those cbk treasury bills, put aside a ka 100k to try out lakini traveling to harambee avenue in the big city put me off.
cbk mpesa pay bill number ama finserve slim member number might be the silver bullet I was waiting for, to finally load my cobalt gun
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Rank: Elder Joined: 10/1/2009 Posts: 2,436
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Ponder:
- Gava has indicated it wants to slash domestic borrowing by >50%,
coming in the wake of the success of the eurobond issue,
- Gava has been paying huge amts on interest on its own funds. I
mean, who participates in these gava security auctions? Its
principally banks and institutional investors. Who deposits with
these banks huge amts? Gava depts/ ministries/country gava
funds, etc make up a huge dominant proportion as funds are not
often fully absorbed due to red tape. So in effect gava has been
paying interest to banks on its own money!
In fact gava is planning to consolidate all these moneys in one
account, and to be disbursed only when needed to these gava/ quasi-
gava depts/ parastatals. Its a raging debate in Treasury at the
moment. Even Jaindi and Rotich waded into this the other day. If
gava gets this right, and the Treasury fellows are quite smart,
then gava will hv the cashflows it has been seeking in the domestic
debt market. Domestic borrowing will potentially be kidogo sana.
Besides offshore borrowing may prove cheaper to gava if it goes by
the eurobond success, and need for gava to keep lending rates low
locally.
It is agaisnt this backdrop that Bw. Kabando has waded in...
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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Intelligentsia wrote:Ponder:
- Gava has indicated it wants to slash domestic borrowing by >50%,
coming in the wake of the success of the eurobond issue,
- Gava has been paying huge amts on interest on its own funds. I
mean, who participates in these gava security auctions? Its
principally banks and institutional investors. Who deposits with
these banks huge amts? Gava depts/ ministries/country gava
funds, etc make up a huge dominant proportion as funds are not
often fully absorbed due to red tape. So in effect gava has been
paying interest to banks on its own money!
In fact gava is planning to consolidate all these moneys in one
account, and to be disbursed only when needed to these gava/ quasi-
gava depts/ parastatals. Its a raging debate in Treasury at the
moment. Even Jaindi and Rotich waded into this the other day. If
gava gets this right, and the Treasury fellows are quite smart,
then gava will hv the cashflows it has been seeking in the domestic
debt market. Domestic borrowing will potentially be kidogo sana.
Besides offshore borrowing may prove cheaper to gava if it goes by
the eurobond success, and need for gava to keep lending rates low
locally.
It is agaisnt this backdrop that Bw. Kabando has waded in... It's true that domestic borrowing has been very expensive and a pain in the ass for the government, offshore borrowing is always cheaper any day but remember there are those powerful sharks that will want the gava to borrow locally all the time! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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McReggae wrote:Intelligentsia wrote:Ponder:
- Gava has indicated it wants to slash domestic borrowing by >50%,
coming in the wake of the success of the eurobond issue,
- Gava has been paying huge amts on interest on its own funds. I
mean, who participates in these gava security auctions? Its
principally banks and institutional investors. Who deposits with
these banks huge amts? Gava depts/ ministries/country gava
funds, etc make up a huge dominant proportion as funds are not
often fully absorbed due to red tape. So in effect gava has been
paying interest to banks on its own money!
In fact gava is planning to consolidate all these moneys in one
account, and to be disbursed only when needed to these gava/ quasi-
gava depts/ parastatals. Its a raging debate in Treasury at the
moment. Even Jaindi and Rotich waded into this the other day. If
gava gets this right, and the Treasury fellows are quite smart,
then gava will hv the cashflows it has been seeking in the domestic
debt market. Domestic borrowing will potentially be kidogo sana.
Besides offshore borrowing may prove cheaper to gava if it goes by
the eurobond success, and need for gava to keep lending rates low
locally.
It is agaisnt this backdrop that Bw. Kabando has waded in... It's true that domestic borrowing has been very expensive and a pain in the ass for the government, offshore borrowing is always cheaper any day but remember there are those powerful sharks that will want the gava to borrow locally all the time! Its cheaper for the govt to borrow offshore with stable FX rates. If gova borrows offshore, it might lead the banks to lowering its interest rates(too much liquidity) If Obiero did it, Who Am I?
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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FRM2011 wrote:@mcreggae, Hon.kabando might be on to something really big here.
Even the country's leading economic commentator, Jaindi Kisero, thinks this could be a really big game changer.
And its good you put it in clubsk, otherwise the nerds from the blue section would have scared us with their jargon. We discussed it here...www.wazua.co.ke/forum.aspx?g=posts&t=17431&p=3   possunt quia posse videntur
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Rank: Elder Joined: 10/3/2008 Posts: 4,058 Location: Gwitu
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I read somewhere that the gava has been borrowing it is own money. Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
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Rank: Elder Joined: 9/15/2006 Posts: 3,908
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This would be radical to say the least.
1. TB yields would remain permanently down
2. Banks would lose a shave of deposits and profits
3. Safaricom would make Oh so much more money
4. Money laundering a tad easier via MPESA no less
5. A more aggressive way of directly controlling inflation, money supply
Positives all the way...
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CBK Ammendment Bill - Vintage Kabando!
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