MENA Project Finance Breakfast
08:00 | Thursday 31 January 2019 | 10 Queen Street Place, London EC4R 1BE
Zimbabwe was in the hot seat this week as rioters took to the streets of Harare and Bulawayo to protest the government’s latest fuel price hikes. The violent police crackdown that ensued, with reports of up to eight deaths, will compromise a government intent on clearing billions of US dollars in arrears and end decades of financial isolation, said market participants.
As Ghana exits IMF support, Finance Minister Ken Ofori-Atta is talking up the prospects for the West-African nation harbouring grandiose ambitions for boosting infrastructure. A recent rebasing of its GDP saw its economy grow 30%, reducing its debt metrics to purportedly sustainable levels, but the latest expansionary budget received a thumbs down from investors, with its 2049 USD bond yields hitting double digits, potentially thwarting its issuance plans.
CEEMEA bonds were under pressure again, with a plunging oil price prompting a mid-week sell off before prices settled down as US market participants celebrated Thanksgiving. In the Middle East, spreads widened on the oil market collapse, and liquidity worsened in the CIS/Russian Eurobond market, according to an UAE-based asset manager, a Moscow-based analyst and a London-based trader.