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Suriname, a potential major energy producer in South America, has decided against borrowing more money based on future oil production. The nation's finance minister emphasized the importance of not burdening future generations with debt secured by oil revenues. Suriname's economy is expected to grow by 3% this year, and the government is focused on managing its forthcoming oil wealth responsibly, including establishing a sovereign wealth fund. The country is also considering its options for future financial programs with the International Monetary Fund. [Extracted from the article]

Ethiopia is implementing a tight monetary policy following a currency reform, with interest rates set at 15% to combat inflation caused by changes in the foreign exchange policy. The reforms include allowing the birr to weaken by 30% in one day, leading to potential price increases, especially for food. The government is also providing subsidies for essential products to assist the poorest during the transition, with plans to eliminate these subsidies in the future. Additionally, Ethiopia is negotiating with lenders to restructure its foreign debt, with the reforms already showing positive results in terms of increased productivity and economic growth. [Extracted from the article]

Ivory Coast's credit rating was upgraded by S&P Global Ratings to BB from BB-, citing strong economic growth and shrinking budget deficits due to higher cocoa prices and rising exports. The nation's 2024-2025 cocoa harvest is expected to be 10% higher than previous estimates, with cocoa prices on the rise. Ivory Coast's dollar bonds maturing in 2033 were trading around 91.8 cents on the dollar. [Extracted from the article]

Suriname is preparing to sell the first-ever United Nations-verified sovereign carbon credits, aiming to raise $45 million by cashing in on its jungle-covered territory. The government's plan is to have companies pay for the carbon absorbed by Suriname's forests, providing an incentive for the country to preserve its natural resources. While some critics question how this approach helps achieve the targets set under the Paris Agreement, there are already potential buyers for the credits, and other emerging markets like Honduras, Belize, and Papua New Guinea are considering similar deals. [Extracted from the article]

Sri Lanka's private creditors and government officials are currently in their third round of talks to restructure $12.6 billion in defaulted bonds. This round of negotiations follows a preliminary agreement reached in July and marks the third time bondholders have been restricted from trading the securities during talks. The government aims to reach a final agreement before the presidential election on September 21, and a statement with details on the ongoing negotiations may be released next week. The July deal included a 28% reduction in the bonds' principal and the issuance of macro-linked bonds tied to economic growth. The agreement requires the support of the International Monetary Fund and bilateral creditors such as China and France. The election is the first since the 2022 economic crisis and is expected to be a close race between three candidates. [Extracted from the article]

Sri Lanka's government officials and private creditors are currently in their third round of talks to restructure $12.6 billion in defaulted bonds. This round of negotiations follows a preliminary agreement reached in July and marks the third time bondholders have been restricted from trading the securities during talks. The government aims to reach a final agreement before the presidential election on September 21, and a statement with details on the ongoing negotiations may be released next week. The July deal included a 28% reduction in the bonds' principal and the issuance of macro-linked bonds tied to economic growth, but it still requires the support of the International Monetary Fund and bilateral creditors. [Extracted from the article]

The Caribbean Development Bank is working to climate-proof the finances of small island governments in the Caribbean region. The plan includes adding clauses that would allow borrowers to pause payments for at least two years after a major disaster, freeing up money for reconstruction. The bank is also considering delaying payments on the borrowing it uses to finance loans. This move is in response to the increasing frequency and destructiveness of hurricanes in the region. The bank plans to roll out the structure of its plan next year and gradually implement the clauses. [Extracted from the article]

Ghana and a group of international bondholders have begun formal talks to restructure $13 billion of Eurobonds. The negotiations come after the parties entered into non-disclosure agreements and the government sent a new proposal. The talks are currently confidential, and an agreement in principle may be announced soon. The bondholders are working with updated information from the International Monetary Fund (IMF), and a deal with bondholders is part of Ghana's larger effort to restructure its debts before the upcoming general elections. Additionally, Ghana recently reached a deal with bilateral creditors to provide relief on $5.1 billion of debt. [Extracted from the article]

Ghana has sent a new debt restructuring proposal to its international bondholders in an effort to advance talks on reworking $13 billion of eurobonds. The proposal is currently being considered by advisers representing a group of foreign creditors. If there is tentative consensus, the two sides could enter into non-disclosure agreements, indicating progress towards a deal. Negotiations with private creditors stalled in April due to a proposal that breached the IMF's debt sustainability parameters, but the government has continued to work on the terms. Ghana has also reached a deal with bilateral creditors to provide relief on $5.1 billion of debt. [Extracted from the article]

Ghana has sent a new debt restructuring proposal to its international bondholders in an effort to advance talks on reworking $13 billion of Eurobonds. The proposal is currently being considered by advisers representing a group of foreign creditors. If there is tentative consensus, the two sides could enter into non-disclosure agreements, indicating progress towards a deal. Negotiations with private creditors stalled in April due to a proposal that breached the IMF's debt sustainability parameters, but the government has continued to work on adjusting the terms. [Extracted from the article]

The article discusses how surprise election results in major developing countries like Mexico and India have had significant impacts on global markets. The unpredictability of these elections highlights the risks of relying on opinion polls to predict outcomes. The article also mentions upcoming elections in the European Union, the UK, and the US, and how these events could further impact markets. It emphasizes the need for investors to consider tail risks and be cautious when interpreting polls as predictions. The article concludes by highlighting the recent volatility in the Mexican peso and Indian stock market due to unexpected election outcomes. [Extracted from the article]

The article discusses how surprise election results in developing countries like Mexico and India are impacting global markets. It highlights the pitfalls of relying on opinion polls to predict election outcomes and emphasizes the need to consider tail risks and outside possibilities. The article also mentions upcoming elections in the European Union, the UK, and the US, and how they could affect markets. It concludes by cautioning investors against making radical bets based on election outcomes and emphasizes the importance of considering long-term policies and capital flows. [Extracted from the article]

Sri Lanka is in advanced talks with a group of creditors, including India, Hungary, and the Paris Club, to restructure its debt with bilateral lenders. Draft versions of the agreement are being exchanged, and the finalization of the deal is underway. The country needs to reach agreements with both bilateral lenders and bondholders to continue receiving disbursements from its $3 billion bailout from the International Monetary Fund. Sri Lanka owes $10.6 billion to bilateral creditors, with China representing over 40% of that debt. The negotiations with Chinese official creditors are separate and no updates were provided. The Paris Club did not comment on the matter. [Extracted from the article]

Sri Lanka is negotiating a $12 billion debt restructuring deal with creditors, and a key element of the proposal is a governance-linked bond. Under this bond, the government's interest rate would be reduced if it meets certain targets related to improving tax collection and reducing corruption. Major creditors, including BlackRock and Morgan Stanley, have expressed support for this proposal. The bond is seen as a potential solution to address the root cause of repeated defaults in Sri Lanka, which is poor governance. This innovative approach could serve as a blueprint for other countries facing similar challenges. [Extracted from the article]

Legislation proposed in New York state to change the way sovereign debt restructurings are carried out after a country defaults has been warned against by the International Monetary Fund (IMF). While the goal of the legislation is to bring more order to the process, the IMF spokesperson stated that certain provisions could introduce uncertainty and negatively impact the timeliness and predictability of the restructuring process. The IMF has not made any formal recommendations on the matter but has backed a contractual approach to debt restructurings. The proposed legislation has sparked a contentious issue between Wall Street and politicians, activists, labor unions, and charities. [Extracted from the article]

Sri Lanka is negotiating a $12 billion debt restructuring deal with creditors, and a key element of the deal is a proposal to link bond payments to improvements in governance. Under this proposal, the interest rate Sri Lanka pays would be reduced if the government meets certain targets related to tax collection and transparency. Many major creditors, including BlackRock and Morgan Stanley, have expressed support for this idea. This approach is seen as a potential solution to the problem of repeated government defaults, and it is the first time that a security has been linked to governance in this way. However, some investors are concerned about how the progress towards these targets will be measured. [Extracted from the article]

Charles-Henri Filippi, a senior adviser and non-executive co-chair of investment banking at Lazard in France, is leaving the bank to join M&A advisory boutique Evercore. Filippi is in talks to join Evercore's French operations in a senior capacity. This move follows the departure of five other bankers from Lazard's Paris office to Evercore. Evercore is expanding its banking team in Paris and plans to hire more bankers in France. Other Wall Street banks and boutique firms have also been adding staff in Paris as the city's influence grows after Brexit. [Extracted from the article]

World financial leaders are calling for a revamp of the system for sovereign debt restructurings, which has left poor countries unable to access capital markets. The common framework initiative, created during the pandemic to help poor countries rework their debt, was a major topic of discussion at the International Monetary Fund's spring meetings. The current system has resulted in prolonged negotiations and defaults, with countries like Zambia, Ghana, and Ethiopia still in the process of negotiating their debt. The urgency to find a solution has increased due to the large debt payments faced by emerging-market governments this year, combined with market tensions and the Federal Reserve's stance. The involvement of Wall Street and China in debt negotiations has sidelined traditional creditors, leading to an opaque and complicated process. Measures announced recently may mark a turning point in incorporating China into the debt restructuring system, including allowing the IMF to lend to countries even during ongoing negotiations. While there have been some positive developments in distressed debt, concerns remain about repayment delays and the lack of debt relief. [Extracted from the article]

Ghana and its creditors are expected to reach an agreement in principle to restructure overseas bonds by the end of May. The International Monetary Fund (IMF) needs to approve an updated economic review before the deal can move forward. The IMF recently conducted a review and found that Ghana's economic growth was higher than expected and its fiscal and external positions had significantly improved. Ghana's dollar bonds experienced a jump in value following this news. The bondholder committee includes Abrdn, Amundi (UK) Limited, BlackRock, Greylock Capital Management, and Ninety One. The IMF plans to disburse $360 million under Ghana's extended credit facility while the debt restructuring is ongoing. [Extracted from the article]

Panama is working to reassure rating firms about its commitment to fiscal and growth targets as concerns rise about the country losing its investment-grade status. The Panamanian government aims to reduce the fiscal deficit to 2% of GDP this year and achieve 2.5% economic growth, according to Deputy Finance Minister Jorge Almengor. The closure of the Cobre Panama mine has impacted the economy, with investors demanding higher risk premiums for Panama's debt. The upcoming presidential election adds uncertainty, with analysts suggesting that credit rating agencies may downgrade Panama further. [Extracted from the article]

Houlihan Lokey Inc., an investment bank, is launching a practice to advise governments on managing sovereign debt. David Gadmer, formerly of Lazard Inc., has joined Houlihan's Paris office to lead this new initiative. The bank's entrance into the sovereign restructuring sector follows a trend of other firms hiring former Lazard bankers. Houlihan aims to deepen its expertise and expand its reach in emerging-market countries by advising governments and state-owned entities on their debt. [Extracted from the article]

Global investors and Sri Lankan officials are planning a second round of talks to restructure $12 billion in defaulted global bonds. The first round of negotiations in Europe in late March did not result in a deal, but the parties plan to continue discussions at the International Monetary Fund's spring meetings in Washington DC. A deal with private investors is crucial for Sri Lanka's plan to overhaul $27 billion of foreign debt, including bonds and loans, and to ensure continued financing from the IMF bailout. The restructuring may involve the issuance of macro-linked bonds, which link bond payouts to Sri Lanka's gross domestic product. [Extracted from the article]

Jeff Bezos, the founder of Amazon.com Inc., has purchased a third mansion on Indian Creek island in South Florida for approximately $90 million. Bezos, who is worth $203.7 billion, plans to live in the new six-bedroom home while tearing down the other houses he bought on the island. Indian Creek is known as the "Billionaire Bunker" and is home to wealthy individuals such as Jared Kushner, Ivanka Trump, Tom Brady, and Carl Icahn. Bezos has been selling Amazon shares since February, totaling around $8.5 billion, but has not disclosed his plans for the proceeds. [Extracted from the article]

Jeff Bezos, the founder of Amazon.com Inc., has purchased a third mansion on Indian Creek island in South Florida for approximately $90 million. Bezos, who is the world's second-richest person, plans to live in the new six-bedroom home while tearing down the other houses he bought on the island. This purchase is part of Bezos's expanding real estate empire, which includes properties in Washington, a Maui estate, and a Beverly Hills mansion. The seller of the mansion is former banker Javier Holtz. [Extracted from the article]

Sri Lanka is set to begin negotiations with global investors to restructure $12 billion in defaulted global bonds next week. A steering committee of bondholders will discuss a proposal from the government to rework the overseas debt, which has been in default since 2022. The goal is to reach a deal quickly, especially as Sri Lanka has upcoming presidential elections. The nation's dollar bonds have risen in response to the news. Sri Lanka's central bank governor and treasury secretary will travel to Europe for discussions with bondholders, and the government also plans to engage with the International Monetary Fund and World Bank in April. The restructuring is crucial for Sri Lanka to continue receiving financing from an IMF bailout. [Extracted from the article]

Sri Lanka is set to begin negotiations with global investors to restructure $12 billion in defaulted global bonds. A steering committee of bondholders will discuss a proposal from the government to rework the overseas debt, which has been in default since 2022. The aim is to reach a deal quickly, especially as Sri Lanka is scheduled to hold presidential elections later this year. The restructuring is crucial for Sri Lanka to continue receiving financing from the IMF bailout. The government has already reached agreements with official creditors and holders of local debt. [Extracted from the article]

Zambia is set to restart negotiations with foreign investors to restructure $3 billion of global bonds, which could be a significant step in the country's efforts to recover from default. Bondholders, including Amundi UK Ltd, RBC BlueBay Asset Management, and Greylock Capital Management, received a proposal from the Zambian government last week and have entered into non-disclosure agreements to begin negotiations. The goal is to reach an agreement before next month's International Monetary Fund meetings, although a deal may be reached sooner. Zambia's progress in restructuring its debt is being closely watched as it is the first African nation to default on pandemic-era debt and is seen as a test case for the G-20's Common Framework for debt restructurings. [Extracted from the article]

Ghanaian authorities and international bondholders are set to begin negotiations this week to restructure approximately $13 billion of defaulted global debt. The talks will involve private investors and government officials, who have entered into non-disclosure agreements. The government has put forth a proposal that bondholders are currently considering. Ghana has been working to revamp its debt for over a year, and has already reached an agreement with bilateral creditors. The focus now is on finalizing a pact with eurobond investors. [Extracted from the article]

Bolivia has been downgraded to junk status by Fitch Ratings due to falling international reserves, which could impact the country's ability to repay its debt. Fitch lowered Bolivia's rating to CCC from B-, citing a decline in reserves by $2.1 billion last year to just $1.7 billion, mostly held in gold. The country's currency, the boliviano, has also been struggling. Fitch expects the government to prioritize external debt payments until 2025, but warns that a $333 million installment in 2026 could pose a greater challenge. Seaport Global has recommended selling Bolivia bonds due to the reserves squeeze. [Extracted from the article]

Brazilian airline Gol has filed for Chapter 11 bankruptcy, joining a string of Latin American carriers that have struggled financially due to the lingering impact of the COVID-19 pandemic. Gol plans to continue operating while undergoing restructuring, including renegotiating contracts with lessors. The airline's debt stands at around $4.2 billion, and its shares have fallen to distressed levels. While other Latin American airlines like Avianca, Latam, and Aeromexico have rebounded and attracted investors after emerging from bankruptcy, Gol's financial woes persist. The bankruptcy filing may open the door for potential consolidation in the industry, including a possible acquisition by rival Azul SA. [Extracted from the article]

A debt crisis is looming for the world's poorest countries, known as "frontier markets," as they struggle to repay approximately $200 billion in bonds and loans in 2024. These countries, including Bolivia, Ethiopia, and Tunisia, are either already in default or facing the possibility of default. The crisis is exacerbated by the fact that these nations rely on global lenders for funding essential services such as healthcare and education. The tightening of US interest rates and the decline in investor interest in these markets further restrict their borrowing options. As a result, these countries are cutting spending, diverting resources from development, and facing political upheaval. [Extracted from the article]

Brazil's largest fuel distributor, Vibra Energia SA, plans to expand sales of corn ethanol in northern states of Brazil, where gasoline is still widely used. While Brazilian ethanol has traditionally been made from sugar cane, the production of corn ethanol has been rapidly expanding in the country's north, leading to investments in new biofuel-producing facilities. Vibra, which operates over 8,400 gas stations, has shifted its focus to renewables and sees ethanol as a key part of its strategy. The company is also considering investing in green jet fuel and sees potential for sustainable aviation fuel to become an export commodity in Brazil. [Extracted from the article]

Pakistan has received initial approval from the International Monetary Fund (IMF) for the release of the next loan tranche from a $3 billion bailout program. The staff-level agreement will grant Pakistan access to approximately $700 million, pending approval from the IMF's executive board. This financing is crucial for Pakistan to avoid defaulting on its debt as the government takes steps to address economic imbalances. The country's dollar bonds have seen a surge in value this year due to optimism surrounding its fiscal recovery with the IMF's bailout. [Extracted from the article]

(Bloomberg) -- Suriname offered to swap $675 million of dollar bonds for new notes, including those linked to oil royalties, as the South American nation wraps up the final steps of its debt restructuring. The IMF last month approved a $52 million loan disbursement from Suriname's bailout program, saying the government's commitment to macroeconomic stability and fiscal discipline is starting to bear fruit. [Extracted from the article]

"Jamaica is an attractive investment prospect for bond holders, but it should also impact the rates that we get from the market", he told Bloomberg News in New York. (Bloomberg) -- Jamaica plans to use a pair of credit upgrades and strong investor demand for its bonds to drive down borrowing costs as it returns to global debt markets, according to Prime Minister Andrew Holness. [Extracted from the article]

(Bloomberg) -- Jeff Bezos is adding a mansion in South Florida's "Billionaire Bunker" to his real estate empire, months after buying the house next door. Besides the Indian Creek homes, Bezos has homes in Washington, a 9-acre Beverly Hills mansion he bought for $165 million in 2020 and an estate in Maui. [Extracted from the article]

Another private sector investor close to the talks, who asked not to be identified, said the IMF and the Paris Club seemed so intent on keeping China involved in the discussions that they were largely excluding private sector investors from substantive talks and dismissing concerns raised by them. (Bloomberg) -- Global creditors are increasingly at odds over how to level the playing field among lenders when governments default, jamming up efforts led by the International Monetary Fund to expedite sovereign debt restructurings. [Extracted from the article]

(Bloomberg) -- Part of the plan to save Metro Bank Holdings Plc - the UK's best-known challenger bank - was hatched from a private-island enclave near Miami known as Billionaire Bunker. It was an embarrassing episode for Frumkin, who just weeks earlier had told investors publicly that regulators at the PRA remained "very responsive" to the company's request. In a conference call with investors, Frumkin made it clear the company is still open to other deals. [Extracted from the article]

A large part of airport operators' revenue in Mexico come from so-called TUAs, or passenger fees for airport use. (Bloomberg) -- Mexico President Andres Manuel Lopez Obrador renewed his broadside challenge to the country's business interests with an unexpected change to airports' concessions agreements, sending stocks tumbling and adding pressure to the peso. [Extracted from the article]

Debt Distress Emerging market debt distress and China's role as a major lender, will be a key topic at next week's IMF meetings in Marrakesh, Morocco. (Bloomberg) -- Zambia's official creditor committee plans to sign a memorandum of understanding to restructure $6.3 billion of debt by the close of the International Monetary Fund's annual meeting next week, two people familiar with the matter said. [Extracted from the article]

Emerging market debt distress, and China's role as a major creditor, will be a key topic at next week's IMF meetings. The IMF is also helping to push a broader "roundtable" to hammer out the way forward on handling debt treatments between the Paris Club, China, private creditors and others. (Bloomberg) -- Zambia's official creditor committee plans to sign a memorandum of understanding to restructure $6.3 billion in debt by the close of the International Monetary Fund's annual meeting next week, two people familiar with the matter said. [Extracted from the article]

(Bloomberg) -- Suriname expects to reach a restructuring agreement with China in November, the final piece in the South American nation's debt negotiations, said President Chandrikapersad Santokhi. Suriname's defaulted dollar bond due in 2026 has risen more than 13 cents on the US dollar this year to 85 cents, the highest since February 2020, according to indicative pricing data compiled by Bloomberg. [Extracted from the article]

Read more: Nigeria's Reform Pledge in Disarray as Naira Rout Deepens Shrinking dollar supply from the central bank is forcing buyers onto the streets for hard currency. The currency of Africa's largest economy extended a months-long slide and hurtled toward the 1000-per-dollar mark in street trading on Thursday, as the central bank held back from supplying dollars to a panic-stricken market. (Bloomberg) -- Nigeria's finance minister Adebayo Olawale Edun said up to $6.8 billion of overdue forward payments in the foreign exchange market need to be addressed before the naira stabilizes. [Extracted from the article]