lochaz-index wrote:Quote:Mozambique said it was unlikely to begin repaying debts that were plunged into default by its $2bn hidden-loans scandal until well into the next decade, as the impoverished southern African nation pushed back hopes for a natural-gas bonanza.
Quote:Mozambique only expects to receive significant tax revenues from natural-gas projects in the late 2020s to help pay off its debts, much later than previously forecast, Mr Maleiane said on Tuesday.
Tuesday’s offer would see Mozambique only begin to repay the majority of its bonds after 2028. Investors said that the proposal amounts to an effective haircut of about 50 per cent on the debt.
Sovereign debt crisis is well and truly on. Investors will rue yield chasing that was the hallmark of international debt markets for the past decade.
Hot on the heels of Mozambique is Congo Brazzaville.
Quote:Until a genuine audit is carried out by neutral auditing firms, under the strict supervision of the IMF, no one can tell the true figure of Congo’s debt,” Matthias Dzon, leader of the Patriotic Union for National Renewal, said by phone Thursday from the capital, Brazzaville.
Oil-producing Congo owes creditors at least $9.14 billion, equivalent to about 110 percent of gross domestic product, according to the IMF, which is considering a bailout. Debt in the central African nation has more than tripled since 2010 because of a series of pre-financing deals by the state oil company that allegedly have been used by people close to or part of President Denis Sassou Nguesso’s family as vehicles for corruption, according to advocacy group Global Witness.
Same script. Opacity, misrepresentation, corruption/embezzlement and finally bailout via a default.
Quote:Congo missed a Eurobond payment last year and the government said in October it’s considering halting payments on its debt to private creditors. Moody’s Investors Service said that month the republic poses a high default risk.
https://www.bloomberg.co...udit-of-state-companies
Meanwhile, Ghana is in the process of arranging for a samurai bond to be followed by perhaps two eurobond issuance in the hope that they attract favorable yields
Quote:Ghanaian lawmakers will vote on Friday to approve a sale of as much as $2.5 billion in sovereign debt, Mark Assibey-Yeboah, chairman of the parliamentary finance committee, said by phone. Ghana will sell $1 billion in Eurobonds to finance this year’s budget and another $1.5 billion if the sale attracts more favorable rates than those it pays for existing debt, Ofori-Atta said earlier this month.
The main purpose of the stock market is to make fools of as many people as possible.