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Markets are also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded rate cuts under Erdogan's unorthodox policies. "I think we are seeing the impact of Simsek pushing (the Turkish central bank) for rational policy." Bankers say the lira's continued gradual depreciation will lead to improved market conditions and halt a decline in central bank reserves. But it sparked a record lira crisis in December of 2021 and sent inflation to a 24-year high above 85% last year. Erdogan is considering appointing Hafize Gaye Erkan, a senior finance executive in the United States, as central bank governor, Reuters reported on Monday.

Persons: Tayyip Erdogan, Erdogan, Mehmet Simsek, Simsek, Sahap Kavcioglu, Tim Ash, Hafize Gaye Erkan, Erkan, Paul McNamara, Huseyin Hayatsever, Jonathan Spicer, Ali Kucukgocmen, Tom Hogue, Christina Fincher Organizations: BlueBay Asset Management, Bankers, Reuters, Simsek, GAM, Thomson Locations: ANKARA, Turkish, United States, Ankara, Turkey, Jorgelina, Rosario, London

ACCRA/LONDON, June 6 (Reuters) - Ghana has sent a debt restructuring proposal to its official creditors, two sources with direct knowledge of the matter said, as the West African country battles to escape its worst economic crisis in a generation. Ghana intends to finish restructuring its domestic debt before turning to negotiations with its official, bilateral creditors and international bondholders, a government official said. The total external debt stock was about $30 billion. Ghana completed a domestic debt exchange with 65% of holders of local bonds in February and is also seeking relief on the bulk of the remainder of its domestic debt, including deals with pension funds, labour unions and independent power producers. It is restructuring its debt under the Common Framework process, set up by the G20 in 2020 to bring China and other newer creditor nations into joint sovereign debt restructuring negotiations, for its external debt rework.

Persons: Maxwell Akalaare Adombila, Rachel Savage, Karin Strohecker, Nick Macfie Organizations: International Monetary Fund, Paris Club, Thomson Locations: ACCRA, LONDON, Ghana, West, China, Rosario

NEW YORK/LONDON, June 1 (Reuters) - A bill backed by debt justice campaigners and civil society groups advocating on behalf of economically distressed countries could alter past and future sovereign debt restructurings covered by New York state law - and Wall Street is watching. Senate Bill S4747, the NY Taxpayer and International Debt Crises Protection Act, "relates to New York state's support of international debt relief initiatives for certain developing countries." The initiative has so far failed to accelerate debt relief talks, while private creditors are not even formally included in this initiative. It would "bring badly needed improvements to the framework for resolving unsustainable sovereign debt burdens," according to Nobel Prize-winning U.S. economist Joseph Stiglitz. If this bill passes, "I would recommend issuers not go through New York law, (but) through London or any other jurisdiction," said Rodrigo Olivares-Caminal, professor of banking and finance law at Queen Mary University of London.

Persons: Bill S4747, Alexander Flood, Patricia Fahy, Kathy Hochul, Joseph Stiglitz, Rishikesh Ram Bhandary, THE BILL, Rodrigo Olivares, Caminal, Rodrigo Campos, Jorgelina, Karin Strohecker, Aurora Ellis Organizations: NY Taxpayer, Senate, Institute of International Finance, Paris Club, China, WHO, Economic, Initiative, Boston, Global, Policy, THE, Queen Mary University of London, Thomson Locations: New York, United States, Ukraine, Sri Lanka, Zambia, Rishikesh, London, Paris, Brazil, Argentina, Rosario

LONDON, May 31 (Reuters) - A decline in labour growth and expected fall in the working age population will be a drag on emerging economies already suffering from fading growth prospects, BlackRock's Global Head of Emerging Markets Amer Bisat told Reuters. "Demographic used to be a tailwind in emerging markets. The golden age for emerging markets, which started at the turn of the century, had come to a swift end after the 2008 financial crisis, Bisat said. While the asset class remained "investable and interesting", the days of putting money to work in all emerging markets assets are over. Bisat also said BlackRock's emerging markets team was focused on building a research library, to include both better data and models on how to use and analyse it.

Persons: BlackRock's, Markets Amer Bisat, Bisat, Karen Leiton, Jorgelina, Rosario, Karin Strohecker, Emelia Sithole Organizations: Markets Amer, Reuters, Labor, Thomson Locations: Mexico, Brazil

Violent clashes between supporters of Imran Khan and police broke out across the country after Pakistan's anti-corruption agency arrested the former prime minister on Tuesday. Pakistan's rupee has lost nearly 50% over the past 12 months. JPMorgan analyst Milo Gunasinghe said little relief from political uncertainty was in sight while the IMF programme remained stalled. "It is usually up to the country to present a credible plan of policies and financing that, in the face of political uncertainty, will credibly address the members’ balance of payment problems." The armed forces remain Pakistan's most powerful institution, having ruled directly for close to half the country's 75-year history through three coups.

NEW YORK/LONDON, May 3(Reuters) - Suriname's government and international bondholders reached a deal to restructure nearly $600 million in debt, three sources with knowledge of the deal said on Wednesday. Suriname has two marketable bonds outstanding totaling just under $600 million . Neither the government nor the creditor committee immediately responded to requests for comment on the deal. Last month, the International Monetary Fund said it was working closely with Suriname authorities to bring their financing program back, while looking for progress in government talks with China, a key creditor. The IMF and Suriname engaged in a financing program for nearly $700 million in late 2021, but it stalled after the first review was approved more than a year ago.

☆ Brazil woos sceptical foreign investors with new fiscal plan
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +4 min

Rebounding commodity prices and a hawkish, independent central bank made Brazil an emerging market investor darling last year. But stocks are in the red in dollar-terms (.MIBR00000PUS) in 2023 compared to small gains in wider emerging markets (.MSCIEF) and a more than 20% rise in Mexico's equities (.MIMX00000PUS). "It feels to me like there are a lot of things that can go wrong," said William Jackson, chief emerging markets economist with Capital Economics. Ronaldo Patah, chief investment officer Brazil at UBS Wealth Management, said that despite uncertainties, Lula's fiscal reform suggested he had shifted his focus to the future -- and away from unravelling previous reforms. "Foreign investors have goodwill for Brazil - they want to invest."

LONDON, April 21 (Reuters) - Zambia will send its first fully-formed debt restructuring plan to China and other government creditors "very soon" the government's legal advisors said, as it looks to capitalise on fresh momentum seen in high-level talks in recent days. "We are hoping to provide a restructuring proposal to the official creditors (committee) very soon," Melissa Butler at White & Case, the law firm advising Lusaka on the restructuring, told Reuters, adding that meant the "coming weeks". "We want to start talking about concrete proposals about what debt relief would look like." Zambia is hoping for more than $8 billion of debt relief and Hichilema recently warned that if the restructuring was not able to be concluded soon, it would "tarnish" the tough fiscal reform measures the government has been undertaking. Zambia's restructuring has a wider importance too.

WASHINGTON, April 14 (Reuters) - A committee of Sri Lanka's international private creditors sent its first debt rework proposal to the country's authorities regarding more than $12 billion in bonds outstanding, according to three sources with direct knowledge of the matter. It is the first bondholder proposal after the island nation of 22 million people defaulted on its debt a year ago. A spokesperson representing the creditor committee declined to comment. Bondholders and government officials met in Washington this week, with legal and financial advisers for both sides present, two sources said. China, Sri Lanka's biggest bilateral creditor, did not join the announcement even though it holds the key to solving debt woes for some low- and middle-income countries.

WASHINGTON, April 14 (Reuters) - A committee of Sri Lanka's international private creditors sent its first debt rework proposal to the country's authorities regarding over $12 billion in bonds outstanding, according to three sources with direct knowledge of the matter. It is the first bondholder proposal after the island-nation of 22 million people defaulted on its debt a year ago. A spokesperson representing the creditor committee declined to comment. China, Sri Lanka’s biggest bilateral creditor, did not join the announcement. Sri Lanka secured last month a $2.9 billion program from the International Monetary Fund to tackle its huge debt burden.

"Financial support is very necessary, as well as military support," he said, acknowledging growing acceptance that the military conflict could drag on. "We should be ready that this war will last longer than we expected,” he said, noting that G7 partners were no longer pushing Ukraine to accept an end to war - as they had last year - but were now signaling their support for a longer conflict. Marchenko said there was also growing openness among donor countries to explore using Russia's frozen assets to pay for Ukraine's reconstruction than even six months ago. "Our partners are thinking about the possibility of using Russian assets as a necessary tool to support Ukraine. Marchenko said U.S. Treasury officials had told him the United States had a low amount of Russian assets, but the issue was of greater concern in Japan, Switzerland and EU countries.

WASHINGTON, April 14 (Reuters) - Zambia last week gave its bondholders a "concrete proposal" for the restructuring of some $3 billion in eurobonds, the ministry of finance and national planning said on Friday. "We continue to engage actively with our bondholders and proposals are being exchanged," the ministry told Reuters in a statement. The proposal "represents our commitment to finding a resolution that is acceptable to all parties and within the parameters set out by the IMF debt sustainability analysis." Zambia defaulted on its overseas debt in 2020 and is working on a restructuring with bilateral creditors and private bondholders, but talks have dragged amid a lack of consensus on how to provide debt relief. Internationally we need to pool our voices together for a stronger response ... We need a stronger response on a global stage."

☆ Argentina seeks to issue up to $1.2 bln in bonds, ministry source says
▼ + stars: | 2023-04-14 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +1 min

The World Bank and CAF-Development Bank of Latin America could not be immediately reached for comment. The operation, which would take place in the coming weeks, would guarantee 60% of the issuance, and the notes would have a maximum maturity of five years, said the ministry source, who asked not to be identified. The intention is to issue two separate bonds, each with its own backing, for up to $600 million each, the source said. "What (the guarantee) allows is for the interest rate to be set on the qualification of the banks" and not Argentina's, said the source. The South American economy is also seeking $500 million of fresh financing from the World Bank, the source added, additional to the $2.5 billion the multilateral lender already has already committed for 2023.

☆ Argentina looking to issue up to $1.2 bln in bonds backed by World Bank, CAF -ministry source
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, April 14 (Reuters) - The Argentine government is in talks to issue two dollar-bonds for up to $600 million each with separate guarantees from the World Bank and the CAF as collateral, a source from Argentina's Economy Ministry said on Friday. The World Bank and CAF-Development Bank of Latin America could not be immediately reached for comment. The operation, which would take place in the coming weeks, would guarantee 60% of the issuance, and the notes would have a maximum maturity of five years, said the ministry source, who asked not to be identified. The push is to issue two separate bonds, each with a separate backing, for up to $600 million each, the source said. "What (the guarantee) allows is for the interest rate to be set on the qualification of the banks" and not Argentina's, said the source.

It remains uncertain, however, whether Sri Lanka's biggest bilateral creditor - China - will join the initiative launched by Japan, this year's G7 chair, with the aim of kicking off a series of meetings among Sri Lanka's creditors. "I hope the creation of this platform will become a model case" for debt restructuring of middle-income countries, Suzuki said. Sri Lanka owes $7.1 billion to bilateral creditors, according to official data from its government, with $3 billion owed to China, followed by $2.4 billion to the Paris Club and $1.6 billion to India. The government also needs to renegotiate more than $12 billion of debt in eurobonds with overseas private creditors, and $2.7 billion on other commercial loans. Sri Lanka kicked off talks to rework part of its domestic debt this month and aims to finalise the deal by May.

WASHINGTON, April 13 (Reuters) - Japan, India and France on Thursday announced a common platform for talks among bilateral creditors to coordinate restructuring of Sri Lanka's debt, a move they hope would serve as a model for solving the debt woes of middle-income economies. It remains uncertain, however, whether Sri Lanka's biggest bilateral creditor - China - will join the initiative launched by Japan, this year's G7 chair, with the aim of kicking off a series of meetings among Sri Lanka's creditors. Sri Lanka owes $7.1 billion to bilateral creditors, according to official data from its government, with $3 billion owed to China, followed by $2.4 billion to the Paris Club and $1.6 billion to India. The government also needs to renegotiate more than $12 billion of debt in eurobonds with overseas private creditors, and $2.7 billion on other commercial loans. Sri Lanka kicked off talks to rework part of its domestic debt this month and aims to finalize the deal by May.

Pemex, which had financial debt totaling nearly $108 billion at the close of last year, pays a profit sharing rate (DUC) - effectively a tax paid to the government - of 40%. Delaying Pemex's payment of the DUC should give the oil giant some $2 billion in cash flow, said Yorio. "We can do this quickly to provide liquidity to Pemex, not through a capitalization, but by allowing it not to immediately pay the royalty, the profit sharing rate," said Yorio. Separately, Yorio said Mexico would not need to issue debt to finance its $6 billion deal to buy 13 power plants from Spanish energy company Iberdrola (IBE.MC). Lopez Obrador has described the deal, which will boost state power utility Comision Federal de Electricidad's (CFE) market share to nearly 56% of Mexico's total power generation from about 40%, as a "new nationalization".

☆ Argentina seeks to issue up to $1.2 billion in bonds, ministry source says
▼ + stars: | 2023-04-14 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +1 min

REUTERS/Ken CedenoWASHINGTON, April 12 (Reuters) - Zambia could lose gains achieved so far from macroeconomic reforms if its ongoing debt restructuring is further delayed, Treasury Secretary Felix Nkulukusa said on Wednesday. The next IMF payout to Zambia from the loan is contingent upon its bilateral creditors reaching an agreement on the long-delayed debt restructuring. The country recently completed the first review of the programme, and the next one is expected in about three months. Ceyla Pazarbasioglu, director of the IMF's Strategy Policy and Review Department, was more optimistic about Zambia's debt restructuring during the panel. The IMF official said that creditors have asked to share and exchange information "sooner" during debt restructuring talks, and added that the Washington-based lender is willing to do so.

☆ Exclusive: Ethiopia seeking $2 billion under IMF program, sources say
▼ + stars: | 2023-04-13 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +2 min

WASHINGTON, April 13 (Reuters) - Ethiopia is in talks with the International Monetary Fund (IMF) to borrow at least $2 billion under a reform program, four sources familiar with the matter told Reuters. In this first debt analysis, the IMF calculated that Ethiopia is set to face a financing gap of at least $6 billion until 2026, according to two sources close to the negotiations. That would still leave a funding hole of roughly $4 billion over that period should the country succeed in securing the amount under discussion. Talks are still ongoing in Washington this week during the IMF and World Bank spring meetings. "The scope of the support for Ethiopia is yet not set in stone, both parts are still working on the debt sustainability analysis," one of the sources said.

WASHINGTON, April 13 (Reuters) - Angola's next sovereign debt issuance will be an ESG bond of up to $1 billion, its finance minister told Reuters on Thursday, but she added that the southern African oil producer's government would not tap the market this year. "We are open to get funding from whoever is interested to participate," she said. But any ESG issuance will be the first one for us, so we want to start with the hard work." "We are very cautious about the moment to step into the markets because we want to stabilise our debt," she said, noting the current challenging market conditions. Reporting by Leika Kihara; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

REUTERS/Elizabeth FrantzApril 13 (Reuters) - The International Monetary Fund is working closely with Suriname authorities to bring their financing program back, while looking for progress in government talks with China, a key creditor, an IMF official said on Thursday. The IMF and Suriname engaged in a financing program for nearly $700 million in late 2021, but it stalled after the first review was approved more than a year ago. "The authorities are here right now, we're having discussions with them," Chalk said, adding that he looks forward for a mission visit soon to "deepen those discussions." "Having some more progress on the debt restructuring talks with China would really help us with the program, and help the country," he said. Reporting by Rodrigo Campos and Jorgelina do Rosario; editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Kenya, along with other African frontier market nations, has been frozen out of international capital markets since early last year. However, it expects $250 million from syndicated loans this month and a $1 billion budgetary support loan from the World Bank in May, Njoroge said. "This compensates for the $1.2 billion we couldn't get from the market last year." Njoroge said Kenya is also seeking a new loan under the Fund's Resilience and Sustainability Trust (RST) to help countries ensure sustainable growth. Stubbornly high inflation that provoked a larger than expected rate hike last month was largely due to high food prices.

☆ Analysis: Debt crunch looms for weaker economies with a wall of bond maturities ahead
▼ + stars: | 2023-04-10 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +5 min

"A more prolonged period without market access would be of more concern for the lower-rated tiers of the emerging markets sovereign universe," said James Wilson, EM sovereign strategist for ING. Tapping international debt markets hasn't been a problem across the board for emerging economies. The JPMorgan's emerging markets bond index (EMBI) for high yield debt is at 900 basis points over U.S. Treasuries, and has largely remained over 800 bps since the beginning of last year. The Russia conflict and then the Fed hiking cycle led to higher spreads for a much longer period," said Gregory Smith, emerging markets fund manager at London-based M&G Investment. A weaker U.S. dollar should help countries to tap international markets in the medium term, but recent data fueled jitters that restrictive central bank policies could push the global economy into recession.

☆ Take Five: An uneasy calm
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +5 min

Kazuo Ueda takes over the helm at the Bank of Japan while U.S. bank earnings kick off and Switzerland's parliament debates the UBS-Credit Suisse tie up. 1/ BANKS' BOTTOM LINESThe uneasy calm that has settled over the U.S. banking sector after the collapse of Silicon Valley Bank will be tested as U.S. financials kick off their earnings season. S&P 500 earnings are predicted to fall 5.0%, I/B/E/S data from Refinitiv showed. Reuters Graphics5/ SPRING MEETINGSPolicymakers and investors head to Washington for the World Bank and International Monetary Fund Spring meetings starting on Monday. It will be the first meeting for Ajay Banga, U.S. nominee to run the World Bank and sole contender for the job.

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