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African finance ministers say support from multilateral organisations should not disrupt access to international capital markets
Weekly investor research
18 May 2020
The finance ministers of 16 African countries requested a 2 year suspension of payments to debt owed to International Financial Institutions (IFIs), but said debt relief should not be conditional upon suspension of payments on Eurobonds. Argentina received three counterproposals in response to the initial debt exchange offer. India approved fiscal measures to support the economy worth 10% of GDP. The Ecuadorian congress approved two important economic reform bills. China’s credit creation remained robust. Indonesia reviewed its 2020 fiscal deficit estimates by 1.2% of GDP. Brazil’s healthcare Minister resigned after clashing with the president. Angola FX reserves were unchanged despite lower oil prices. Banco de Mexico cut the policy rate by 50bps to 5.5%. Pakistan received a commitment of USD 4bn in loans from IFIs as foreign workers’ remittances remained robust in April.