The Editorial Team |

Virus Adds to Woes of Nigerian Banks Beset by Oil’s Collapse (1)

LAGOS (Capital Markets in Africa) — Nigerian banks have more to worry about than the coronavirus: Cratering oil prices and the threat of another naira devaluation are emerging as the biggest risks to how many lenders will emerge unscathed. The industry has already agreed to forgo profit to support the economy as measures to contain the Covid-19 outbreak bring most businesses to a halt. Now, oil prices near $15 a barrel are drying up the largest source of foreign…

Nigeria’s Access Bank to Cut Staff Salaries to Avoid Job Losses

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LAGOS (Capital Markets in Africa) — Access Bank Plc plans to cut salaries to avoid job losses as a lockdown to contain the coronavirus hampers the operations of Nigeria’s biggest lender, according to people with direct knowledge of the matter. The reductions are expected to start from May unless business conditions improve, said the people, who were briefed on the matter during a conference call and asked not to be identified because they’re not authorized…

S&P Cuts South Africa Deeper Into Junk as Virus Hits Growth

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JOHANNESBURG (Capital Markets in Africa) — S&P Global Ratings cut South Africa deeper into junk territory amid concern the Covid-19 pandemic will send the economy into a sharp downturn. The rating firm downgraded the country’s long-term foreign-currency rating to BB-, three notches below investment-grade, from BB. South Africa’s cost of servicing the public debt will climb to about 6.5% of gross domestic product by 2023, S&P said Wednesday. The South African Treasury said it’s “disappointed”…

Bondholders Mull Joining Poor-Country Debt Waiver as Calls Grow

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LAGOS (Capital Markets in Africa) — Private creditors are exploring ways to join an initiative to waive debt payments from poor countries, potentially opening a new chapter in efforts to avert sovereign defaults in the wake of the coronavirus pandemic. Creditors will work in the coming weeks on reference terms for voluntary private-sector participation in debt-relief efforts, the Paris Club and the Institute of International Finance, a trade group that represents the world’s biggest banks and…

Biden Woos Left Flank Along With Wall Street to Avoid 2016 Rerun

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NEW YORK (Capital Markets in Africa) — Joe Biden is trying to win over progressives by courting the movement’s leaders and backing their calls for significant increases in pandemic relief, yet faces an uphill fight to convince skeptics on the left he won’t abandon working people in favor of Wall Street. Since the economic crisis began with the coronavirus pandemic, he has shifted some of his stances leftward, calling for trillions of dollars more in…

Fed to Focus on Next Steps to Save Economy: Decision Day Guide

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NEW YORK (Capital Markets in Africa) — With interest rates near zero, Federal Reserve policymakers are likely to turn attention to other steps they could take to ensure a strong economic rebound once the coronavirus lock-down ends. The Federal Open Market Committee is all but certain to keep its benchmark overnight rate in a target range of 0-.25%, where it was lowered at an unscheduled FOMC on March 15 to help soften the pandemic’s blow. The committee…

IMF Approves $3.4 Billion in Emergency Funding for Nigeria

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LAGOS (Capital Markets in Africa) — The International Monetary Fund approved $3.4 billion in emergency funding to Nigeria, the single biggest disbursement for any country yet with the coronavirus pandemic. In a statement, IMF Deputy Managing Director Mitsuhiro Furusawa said that the pandemic and the plunge in oil prices are severely impacting Nigeria and that the funds will provide much-needed liquidity to respond to the urgent balance of payments needs. He also called for the…

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