Eric de Beauchamp, Senior Vice President at Credit Bank of Moscow, admits fear of additional sanctions – more so than existing measures – is weighing on the minds of investors when it comes to Russia. But shrewd management and strong communications allowed CBOM to avoid the fate of numerous large lenders that fell victim of the Central Bank’s cleanup of the sector in 2017, becoming one of the most successful private banks in the country.
Following its bold return to the debt markets in 2014, Ecuador has leaned heavily on external credit to meet its monetary and financing needs. Yet its options appear to be increasingly limited, with the prospect of a more aggressive deficit reduction programme or an IMF bailout becoming more likely by the day.
Global growth concerns are likely to keep EM on its back foot. China and the eurozone reported weak economic data Friday, and even a much stronger than expected US retail sales report was not enough to turn market sentiment.
The long-forgotten instrument is back in the market as commodity exporters are stuck between sanctions-related forced “de-dollarisation” of the Russian economy and their internal requirements for hard-currency funding.
Moving forward with plans to swap its debt from local currency into dollars, Nigeria’s Federal Government successfully placed close to USD3bn in international bond markets through a widely subscribed issuance in November that saw roughly three times that amount in demand from investors. But analysts are concerned that a confluence of factors – declining oil prices, persistently poor revenue generation, slowness to reform and an increasingly volatile political environment – could arrest the optimism and capital markets momentum generated by the sale.
The GCC is rarely known for doing anything in half-measures, and infrastructure projects – which have grown in number and size in recent years – are no exception.
Against a fairly challenging market backdrop, borrowers in Turkey have pushed through with a number of landmark transactions in 2018 as they look to prioritize risk and liability management. With an economic recovery on the horizon, we speak Eda Tanyel, Head of Structured Finance at HSBC in Turkey about the credit market outlook for the remainder of the year and beginning of 2019, how corporates are overcoming external funding challenges, and the growing role of Asian investors in the region’s infrastructure pipeline.
In recent years, many state governors in Brazil avoided the necessary adjustment of public accounts, largely down to the intense election calendar. For some, the calculation went wrong and the public response came through the ballot boxes.
Turkey’s credit fundamentals are deteriorating, squeezed by high exposure of the corporates to USD debt and rising NPLs. Strong and transparent policy measures – including supporting local banks if necessary – are needed to breath life into the economy, Novruz Bashirov, Portfolio Manager at Rimrock Capital, told Bonds & Loans.
The outlook for GCC credit remains buoyant through the remainder of the year despite a brief lull through the summer months. Still, deeper and more frequent questions about the structural challenges faced by many of the GCC economies suggest more uncertainty lies ahead in the longer term, according to bankers, borrowers, investors and economists who spoke with Bonds & Loans on a recent research trip to the region.
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11 Dec 2018