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Rank: Member Joined: 7/1/2009 Posts: 272
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wukan wrote:Following the Zambian playbook, ill-informed rate cap, vanity projects. Premium tears coming up shortly Wow! We had this case study to learn from, and still went down that path? Then perhaps a default on our Eurobonds is inevitable too, down the line.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Monk wrote:wukan wrote:Following the Zambian playbook, ill-informed rate cap, vanity projects. Premium tears coming up shortly Wow! We had this case study to learn from, and still went down that path? Then perhaps a default on our Eurobonds is inevitable too, down the line. https://www.the-star.co....itter#Echobox=1605673618possunt quia posse videntur
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Rank: Elder Joined: 12/7/2012 Posts: 11,935
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maka wrote:Monk wrote:Following the Zambian playbook, ill-informed rate cap, vanity projects. Premium tears coming up shortly Wow! We had this case study to learn from, and still went down that path? Then perhaps a default on our Eurobonds is inevitable too, down the line. https://www.the-star.co....tter#Echobox=1605673618[/quote] These are doomsday naysayers, Kenya is good under the stewardship of Jubilee. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Angelica _ann wrote:maka wrote:Monk wrote:Following the Zambian playbook, ill-informed rate cap, vanity projects. Premium tears coming up shortly Wow! We had this case study to learn from, and still went down that path? Then perhaps a default on our Eurobonds is inevitable too, down the line. https://www.the-star.co....tter#Echobox=1605673618[/quote] These are doomsday naysayers, Kenya is good under the stewardship of Jubilee. Sisi kwisha.... possunt quia posse videntur
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Rank: Veteran Joined: 11/13/2015 Posts: 1,653
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Wacha katambe Quote:NAIROBI, Nov 18 (Reuters) - Kenya has changed its mind about a G20 coronavirus debt relief initiative it declined to join earlier this year, and is now planning to defer around $690 million in debt payments, its finance minister told Reuters on Wednesday. Kenya had said in May that it would not seek suspension of debt payments under the G20’s Debt Service Suspension Initiative (DSSI), aimed at helping poor countries weather the COVID-19 pandemic, as it found the terms too restrictive. “We have been reluctant in the past because of the attendant unintended consequences in terms of those holding private debt,” Finance Minister Ukur Yatani said. https://www.reuters.com/article/idUSL1N2I411M
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Rank: Member Joined: 7/1/2009 Posts: 272
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Angelica _ann wrote:maka wrote:Monk wrote:Following the Zambian playbook, ill-informed rate cap, vanity projects. Premium tears coming up shortly Wow! We had this case study to learn from, and still went down that path? Then perhaps a default on our Eurobonds is inevitable too, down the line. https://www.the-star.co....tter#Echobox=1605673618[/quote] These are doomsday naysayers, Kenya is good under the stewardship of Jubilee. Dry humour...
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Rank: Veteran Joined: 11/13/2015 Posts: 1,653
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Quote:The International Monetary Fund (IMF) and the World Bank have forced Kenya to take a Sh75 billion coronavirus debt relief from wealthy nations as a pre-condition for accessing cheap loans. Kenya is now planning to defer around $690 million (Sh75 billion) in debt payments as it seeks further funding from the Bretton Woods institutions for budget support to weather the coronavirus economic hardships. Treasury Cabinet Secretary Ukur Yatani reckons that Kenya made a U-turn in seeking a suspension of debt payments under a G20 initiative due to pressure from the Bretton Woods institutions. A restrictive clause in the Eurobond terms stopped Kenya from seeking a suspension of debt payments because it could have forced the country to pay the entire Eurobond debt worth $6.1 billion (Sh652.7 billion). Besides the Eurobond terms, the Treasury was fretful that the relief could hurt the country’s credit rating and be viewed as one that does not meet its international obligations. “They (World Bank and IMF) are trying to introduce this as one of the key prerequisites to accessing resources from the IMF and World Bank,” Mr Yatani told Reuters. https://www.businessdail...5bn-debt-relief-3204412
It looks like Washington is serious about buying the Chinese loan book and getting Kenya away from the Chinese orbit. Echoes of the '97 Asian financial crisis
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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https://www.standardmedi...l-with-imf-for-more-cashWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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wukan wrote:Quote:The International Monetary Fund (IMF) and the World Bank have forced Kenya to take a Sh75 billion coronavirus debt relief from wealthy nations as a pre-condition for accessing cheap loans. Kenya is now planning to defer around $690 million (Sh75 billion) in debt payments as it seeks further funding from the Bretton Woods institutions for budget support to weather the coronavirus economic hardships. Treasury Cabinet Secretary Ukur Yatani reckons that Kenya made a U-turn in seeking a suspension of debt payments under a G20 initiative due to pressure from the Bretton Woods institutions. A restrictive clause in the Eurobond terms stopped Kenya from seeking a suspension of debt payments because it could have forced the country to pay the entire Eurobond debt worth $6.1 billion (Sh652.7 billion). Besides the Eurobond terms, the Treasury was fretful that the relief could hurt the country’s credit rating and be viewed as one that does not meet its international obligations. “They (World Bank and IMF) are trying to introduce this as one of the key prerequisites to accessing resources from the IMF and World Bank,” Mr Yatani told Reuters. https://www.businessdail...5bn-debt-relief-3204412
It looks like Washington is serious about buying the Chinese loan book and getting Kenya away from the Chinese orbit. Echoes of the '97 Asian financial crisis Unlikely. Why would Washington want the Chinese Loan that Kenya is having problems paying?  As an example, look at KCB trying to collect on the "Equity" Loan to City Hall. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 11/13/2015 Posts: 1,653
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VituVingiSana wrote:wukan wrote:Quote:The International Monetary Fund (IMF) and the World Bank have forced Kenya to take a Sh75 billion coronavirus debt relief from wealthy nations as a pre-condition for accessing cheap loans. Kenya is now planning to defer around $690 million (Sh75 billion) in debt payments as it seeks further funding from the Bretton Woods institutions for budget support to weather the coronavirus economic hardships. Treasury Cabinet Secretary Ukur Yatani reckons that Kenya made a U-turn in seeking a suspension of debt payments under a G20 initiative due to pressure from the Bretton Woods institutions. A restrictive clause in the Eurobond terms stopped Kenya from seeking a suspension of debt payments because it could have forced the country to pay the entire Eurobond debt worth $6.1 billion (Sh652.7 billion). Besides the Eurobond terms, the Treasury was fretful that the relief could hurt the country’s credit rating and be viewed as one that does not meet its international obligations. “They (World Bank and IMF) are trying to introduce this as one of the key prerequisites to accessing resources from the IMF and World Bank,” Mr Yatani told Reuters. https://www.businessdail...5bn-debt-relief-3204412
It looks like Washington is serious about buying the Chinese loan book and getting Kenya away from the Chinese orbit. Echoes of the '97 Asian financial crisis Unlikely. Why would Washington want the Chinese Loan that Kenya is having problems paying? As an example, look at KCB trying to collect on the "Equity" Loan to City Hall.
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