Each of Angola’s six dollar-denominated government bonds and three from Gabon are trading at more than 1,000 basis points above US Treasuries, a threshold that signals a nation may struggle to repay its debt, according to data compiled by Bloomberg. The sovereign bonds of Nigeria, Kenya and Egypt fell into distressed territory recently.
The widening of the distressed club to include oil-producing states shows how few nations are being spared the concern that’s engulfing the developing world about the risk of a global recession and accelerating inflation. The number of countries in distressed territory has risen to 21 from nine at the end of last year, after Russia’s invasion of Ukraine spooked investors and triggered outflows from emerging markets.
Angola is gearing for a general election on Aug. 24, the first test of President Joao Lourenco’s popularity since he replaced Jose Eduardo dos Santos at the helm of the resource-rich nation in 2017. While the ruling Popular Movement for the Liberation of Angola, or MPLA, has led Africa’s second-biggest oil producer for almost half a century, this year’s vote is expected to be a tight race against a stronger opposition.
An opinion poll published in May by research company Afrobarometer showed the MPLA had the support of 29% of the 1,200 respondents, while 22% backed the opposition Unita party, which has the support of two smaller groups. Lourenco’s government has embarked on an ambitious reform program under a three-year program with the International Monetary Fund that ended last year.
Unita leader Adalberto Costa Junior has pledged to continue to clamp down on corruption and reduce the role of the state in the Angolan economy if he wins the upcoming vote. He has ruled out the possibility of Angola reneging on its debt obligations.
South African is next online
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: mybroadband - 🏆 11. / 67 Read more »
Standard Bank’s BCC division aims to ignite East African business growthSPONSORED | The bank is building a capital and capability ecosystem that supports small traders, agribusinesses and entrepreneurs through hassle-free digital banking
Source: BDliveSA - 🏆 12. / 63 Read more »