Domestic Bonds – RiotJs Sat, 22 Jan 2022 10:36:54 +0000 en-US hourly 1 David Y.Ige | DOT News Release: HDOT AIRPORTS DIVISION TAKES ADVANTAGE OF LOW RATES TO FINANCE $230 MILLION FOR CRITICAL PROJECTS, REFINANCES DEBT TO SAVE Sat, 22 Jan 2022 01:54:34 +0000


Posted on January 21, 2022 in Latest news from the department, Press room

HONOLULU – The Hawaii Department of Transportation (HDOT) is pleased to announce that the Airports Division has successfully sold new Airport System Revenue Bonds to provide critical funding for projects that will continue to modernize and expand air service facilities throughout the state. At the same time, the Airports Division took advantage of low interest rates in the municipal bond market to refinance past bonds to reduce costs.

The new bonds will fund approximately $230 million in critical projects that will support the momentum of the Airports Division’s capital improvement program as HDOT continues to invest in the state’s airports. The bonds have an average interest rate of 3.44% with a final maturity in 2051. The interest rate of the bonds sold today represents one of the lowest interest rates ever achieved by the Airports Division , narrowly exceeding the all-time low of 3.35% that was reached in October 2020.

HDOT also successfully refinanced $57 million of outstanding revenue bonds for savings. The bonds that have been refinanced were originally issued in 2011 with an average interest rate of 4.80% and a final maturity in 2024. The refinancing will lower the average cost to approximately 1.00%, thereby reducing service costs of the debt of these bonds.

In preparation for the bond sale, the Airports Division management team conducted an extensive marketing campaign, highlighted by a live virtual presentation by senior State, HDOT and Airports Division officials. airports. In attendance were investors representing some of the largest accounts in the United States that buy municipal bonds. The Division also released an online presentation for local and national investors and further targeted Hawaiian investors with digital advertising on local websites.

“Air service is critical to Hawaii,” Governor David Ige said. “The Hawaii Department of Transportation and the Airports Division continue to move cautiously to complete plans to modernize and expand our facilities while taking advantage of cost reduction opportunities. These actions are critical as we continue to adapt to the COVID-19 pandemic, and the success of today’s transaction demonstrates the market’s continued confidence in Hawaii and our airport system as we build for the future. to come up.

Prior to the sale of the bonds, the credit quality of the Airports division was reviewed by Moody’s Investors Service, S&P Global Ratings and Fitch Ratings, which each confirmed the division’s strong bond ratings of A1, A+ and A+, respectively. S&P raised the Division’s outlook from “Positive” to “Stable,” citing the recovery of U.S. domestic travelers to pre-pandemic levels, proactive steps taken by Division management, and financial planning and resilience to long-term government as significantly positive credit factors. Moody’s and Fitch both assigned a “stable” outlook to the bonds, with Moody’s acknowledging the airports division’s “strong financial flexibility to manage COVID-related pressures as passenger levels trend toward full recovery.”

“Strong credit ratings and a robust marketing effort were instrumental in securing one of the lowest interest rates ever for the airports division, despite selling the bonds in a tough market,” said Ross Higashi, Deputy Director of the Airports Division. Municipal bond market volatility has increased in recent weeks as investor sentiment continues to shift in response to the global COVID-19 pandemic and federal economic announcements.

Morgan Stanley was the lead underwriter responsible for the bond sale, with BofA Securities serving as co-lead manager. A Hawaii-based sales group was used to market the bonds to local retail investors.


Nigeria’s new FGN bond for January 2021 is oversubscribed by N139 billion Thu, 20 Jan 2022 13:58:31 +0000

The Nigerian Federal Government Bond issue for January 2021, by the Debt Management Office (DMO), was oversubscribed by N139 billion to stand at N214.1 billion while that it was only looking to raise 75 billion naira for its 20-year bond issue.

This is contained in the result of the January 2022 FGN bond auction, released by the DMO on Wednesday.

The Debt Management Office issued two tranches of bonds in its first issue of the year, reopening its 10-year FGN 12.5 bond and issuing a new 20-year FGN 13% bond, which is expected to come in at due in 2042.

The breakdown of the report reveals that the first tranche was oversubscribed by 36.19 billion naira with subscriptions of 111.19 billion naira exceeding the amount offered by 75 billion naira, while the second tranche was oversubscribed by 139 billion naira. naira out of the offered amount of 75 billion naira.

Recall that Nairametrics last week published the DMO bond issuance schedule for the first quarter of 2022, which sets the first auction date for January 19, 2022, the others being February 16 and March 23, 2022 respectively.

According to the January auction performance report, winning bids for 12.50% FGN JAN 2026 and 13.00% FGN JAN 2042 were awarded at marginal rates of 11.50% 11.00% – 14.50 % 13.0000% and 13.00%, respectively.

However, the initial coupon rates of 12.5000% for the 12.5000% FGN JAN 2026 will be maintained, while the coupon rate for the 13.00% FGN JAN 2042 (new issue) is set at 13.00% .

What does that mean

The oversubscription of the FGN bond issue means that Nigerian investors are still investing their money in less risky instruments despite low returns as other investment channels have not been showing attractive returns lately. However, interest had improved from the single-digit interest rates recorded the previous year.

What you need to know about FGN bonds

  • FGN bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN) issued by the Debt Management Office (DMO) for and on behalf of the Federal Government. The FGN is obligated to pay the bondholder the agreed principal and interest as they fall due.
  • When you buy FGN bonds, you are lending to FGN for a fixed period. FGN bonds are considered the safest of all investments in the domestic debt market because they are backed by the “full faith and credit” of the federal government, and as such are classified as an instrument of risk-free debt.
  • According to the DMO, bonds have no risk of default, which means it is certain that your interest and principal will be paid when due. Interest earned on securities is tax exempt.

rupee: the rupee reaches its lowest level in 2022 and could depreciate further Tue, 18 Jan 2022 14:07:00 +0000 KOLKATA/MUMBAI: The Indian rupee depreciated by half a percentage point on Tuesday amid concerns about faster tightening by the US Federal Reserve and a seven-year high global oil price. The local unit closed against the at 74.58, its weakest level since December 29th.

A spike in the benchmark US Treasuries that led to a tumble in domestic equity indices also weighed heavily on the rupiah. The Nifty fell 1.07% to 18,113, making it the worst fall of 2022. India’s government bond yield was largely unchanged, however, with the benchmark bond at 6.10% closing the day at 6.63% against 6.64% a day before. .

“The rupiah may depreciate further due to the cocktail of higher oil prices and rising real yields. It may see levels of 75.30/50 in the medium term,” said Anindya Banerjee, currency analyst at Kotak. Securities.

The local currency opened lower at 74.38 from Monday’s close at 74.24 to the dollar and remained under pressure for most of the trading session.

“Rising oil prices will rekindle inflation risks and concerns about high trade deficits in the country,” said Sriram Iyer, senior research analyst at Reliance Securities.

Markets around the world remained weak as the yield on 10-year US Treasuries jumped to 1.83%, the highest in two years, amid fears the Fed would hike rates faster to curb the Rising inflation in the United States gripped traders.

If US Treasury yields continue to rise, India’s benchmark cannot escape it, said Ajay Manglunia, managing director and head of fixed income at JM Financial.

“Rising global yields, crude prices and fear of inflation have been under heavy pressure and local bond yields are likely to follow a northerly trip in the coming days ahead of the budget which decides on borrowing for the next fiscal year. “, did he declare. .

Dollar rates, on the other hand, have been supported as market participants reassess how far the Fed should act to rein in inflation, DBS Group research said in a note.

“It has become increasingly difficult for the Fed to justify short zero rate floors as the CPI turns 7% YoY in December. Now there seems to be an outside chance that the Fed wants to act a bit more aggressively early in the tightening cycle. This could take the form of a full end to quantitative easing in January, instead of waiting until March,” DBS said.

Sri Lanka’s imports soar to four-year high amid ‘currency shortage’ Mon, 17 Jan 2022 02:12:34 +0000

ECONOMYNEXT – Sri Lanka’s imports soared to US$21.6 billion in 2021, a four-year high, amid what are being dubbed in popular media as “currency shortages”, the highest since money printing year of 2018, according to preliminary data in the public domain.

Central Bank Governor Nivard Cabraal in a post on said 2021 imports are estimated at US$21.6 billion, compared to US$16.1 billion in 2020 and US$19.9 billion. billion US dollars in 2019.

In 2020, imports fell sharply as containment measures reduced domestic consumption and private credit collapsed.

Imports in 2021 are the highest since 2018, when the central bank also printed money and created currency shortages, causing the rupee to fall from 151 to 182 against the US dollar.

In 2018, the central bank printed money by injecting up to 60 billion rupees of excess liquidity into money markets to keep interest rates below a policy rate cap.

At the start of 2020, the central bank injected up to 200 billion rupees (around $1 billion) of excess liquidity which was quickly depleted as the economy recovered.

In 2018, money was printed through the purchase of Treasury bills, breaking the “Treasuries only” policy established by the late Central Bank Governor, AS Jayewardne, who was a classical economist.

Money was printed by the central bank in 2018 to keep interest rates low despite politically difficult tax increases to reduce the budget deficit.

Central bank forecasts of year-end imports, trade deficits and foreign reserves projections are dismantled every year that inflationary policy is followed, triggering currency crises and balance of payments deficits.

However, the central bank, for 70 years, printed money to keep rates low, finance rural credit or past and current deficits.

Inflationary policy (printing money above the anchor) drove up inflation as well as imports and triggered balance of payments deficits, or declines in foreign exchange reserves, dollars given by the central bank for imports or other payments.

In the absence of a central bank, peaks in imports or outflows in an indexed regime are met by short-term declines in liquidity, increases in interest rates, and increased domestic savings.

Although currency shortages are triggered by “rupee excesses” in the popular media, the financial press and mercantilists characterize inflationary policy in an indexed regime as “currency shortages”.

Sri Lanka is no longer printing money to finance deficits after Governor Nivard Cabraal lifted price controls on bond auctions and kept short-term rates below the rate cap, but the country is not has no exchange rate regime in effect and is obliged to give “reserves for imports”.

After giving reserves for imports, the liquidity shortage is sterilized with new money to maintain a policy rate of 6.0% giving resources to banks which give treasury bills to the central bank to obtain l printed money and also stimulate investment and discourage saving.

The cycle continues until the central bank raises rates. A move to a floating rate (suspending convertibility or completely stopping giving “reserves for imports”) is usually also necessary to restore a functioning exchange rate regime with a spot market. (Colombo/January 17, 2021)

Malta’s corporate debt is the fourth highest in the world Sat, 15 Jan 2022 09:32:00 +0000

Malta has the fourth highest amount of corporate debt relative to its GDP, behind its smaller state counterparts Luxembourg, Ireland and Cyprus, a study has found.

Corporate debt in Malta totals nearly 215% of GDP, according to statistics published by UK consultancy Utility Bidder and based on IMF corporate debt data.

Here, corporate debt includes all debt instruments, ranging from loans and bonds to other securities. Restricting the figure to just loans and debt securities, Malta’s corporate debt to GDP ratio stands at 137%, the 11th highest in the world.

Covering data from 1995, the IMF data suggests a long-term upward trend in corporate debt, more so when the figure covers all debt securities. The largest increase in corporate debt took place between 2004 and 2011.

Malta entered the European Union with a debt-to-GDP ratio of 150% and a GDP of €4.8 billion, according to historical figures from the Central Bank of Malta. He estimates that corporate debt then amounted to 7.2 billion euros.

As expected, lending to the private sector has also started to increase. In 2004, loans to the private sector amounted to around €2,500 million. In 2013, these loans reached well over 4,000 million euros.

But the 2008 financial crisis and the years that followed saw GDP and corporate debt falter. Corporate debt peaked in 2011 at 230% of GDP and remained at more than double GDP through the 2010s. As expected, the numbers are in line with the upward trend in GDP.

Utility Bidder suggests that Malta’s low level of GDP, at least compared to other economies, due to Malta’s small size and large number of businesses, means it is easy for corporate debt to exceed GDP. This helps explain how the four most corporately indebted countries are small states.

Economist Gordon Cordina added that Malta’s high corporate debt is the result of businesses turning to local banks, as opposed to bonds and stock markets, for financing. “Part of this is due to banks’ inherent advantages in serving relatively small sized markets,” he said. “I should also add that Maltese companies tend to use internally generated profits more.”

In 2013, the European Commission warned Malta about high levels of corporate debt. In an in-depth review of Malta’s macroeconomic situation, the Commission said that the high level of corporate and government indebtedness warranted particular attention, as did Malta’s large financial sector, given the link between national banks and the local housing and construction market.

Yet even during the COVID-19 pandemic, Maltese businesses remain somewhat resilient, although this is due to government support measures which have helped to cushion the impact of the pandemic.

To alleviate liquidity concerns, the government launched the MDB COVID-19 Guarantee Scheme, through which the Malta Development Bank guaranteed new loans from commercial banks to businesses facing liquidity shortages resulting from the pandemic. . In addition to this, the Central Bank of Malta had issued a six-month moratorium on loan repayments to temporarily suspend borrowers’ repayment obligations.

Asia Morning Call-Global Markets | Reuters Tue, 11 Jan 2022 18:30:00 +0000

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WORLD – US stocks increased their losses on Tuesday after Federal Reserve Chairman Jerome Powell said the central bank was likely to raise interest rates this year, remarks that dampened demand for risky assets and increased bond yields.

Benchmark 10-year Treasury yields climbed to 1.7764% on Powell’s comments, after peaking nearly two years above 1.8% overnight.

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NEW YORK – U.S. stock indexes fell on Tuesday ahead of testimony from Federal Reserve Chairman Jerome Powell, which may offer new insights into tightening policies and the central bank’s plans to fight inflation.

At 9:44 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 253.81 points, or 0.70%, to 35,815.06, the S&P 500 (.SPX) was down 27.75 points, or 0.59%, to 4,642.54, and the Nasdaq Composite (.IXIC) lost 95.47 points, or 0.64%, to 14,847.36.

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LONDON – Investors recovering in tech stocks along with optimistic expectations for the fourth quarter earnings season led European stocks to rally on Tuesday after fears of a rate hike led to heavy losses in recent sessions.

The pan-European STOXX 600 (.STOXX) closed 0.8% higher, recovering from its worst day in 1.5 months.

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TOKYO – Japan’s Nikkei Index closed about 1% lower on Tuesday, following the weak overnight Wall Street result amid cautiousness about a possible US Federal Reserve rate hike as early as March, while rising Treasury yields caused tech stocks to sell off.

The Nikkei stock average (.N225) fell 0.9% to close at 28,222.48, while the wider Topix (.TOPX) slipped 0.44% to 1,986.82.

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SHANGHAI – Chinese stocks closed lower on Tuesday as expectations of faster US Federal Reserve interest rate hikes and national COVID-19 outbreaks weighed on sentiment, defense stocks and investors. information technology leading the decline.

The blue-chip CSI300 index (.CSI300) fell 1.0% to 4,797.77, while the Shanghai Composite Index (.SSEC) fell 0.7% to 3,567.44.

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AUSTRALIA – Australian stocks closed nearly 1% lower on Tuesday, led by financial services, as an increase in COVID-19 infections in the country hovered around record highs, pushing down major retailers.

The S & P / ASX 200 Index (.AXJO) ended down 0.77% to 7390.1, extending losses for the second straight session. The benchmark index fell 0.08% on Monday.

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SEOUL – South Korean stocks closed flat on Tuesday as investors warned investors pending Federal Reserve Chairman Powell’s appointment hearing and US inflation data.

The benchmark KOSPI (.KS11) closed 0.66 points, or 0.02%, higher at 2,927.38, recovering from earlier losses of 0.58%.

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NEW YORK – The dollar edged up against a basket of currencies on Tuesday as a bout of volatility in global financial markets limited demand for riskier currencies and investors awaited testimony from the Federal Reserve Chairman , Jerome Powell, at a hearing in the United States Senate.

The dollar index, which measures the greenback against six major peers, was up 0.06% to 95.997.

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SHANGHAI – The Chinese yuan appreciated slightly against the dollar on Tuesday due to strong demand from businesses, but traders said the opportunities for a breakout to the upside are limited as expectations that the US Federal Reserve will will accelerate the rise in interest rates support US yields.

The spot yuan opened at 6.3740 to the dollar and changed hands at 6.3706 by noon, 62 pips firmer than Monday’s trading close.

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AUSTRALIA – The Australian and New Zealand dollars were stuck on Tuesday as increasingly hawkish outlook for US interest rates overshadowed bullish news on the domestic economy.

The Aussie was a bit firmer at $ 0.7182, but sandwiched between support at $ 0.7130 and resistance around $ 0.7203.

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SEOUL – The Korean won strengthened, while the benchmark bond yield fell.

The won closed at 1,194.7 per dollar on the onshore settlement platform, 0.37% higher than its previous close.

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NEW YORK – Short-term U.S. Treasury yields hit nearly two-year highs on Tuesday as investors braced for the likelihood that the Federal Reserve would hike rates up to four times this year, and before the Department Treasury does not sell new three-year notes.

Highly interest rate sensitive two-year bond yields jumped to 0.945% and three-year yields hit 1.237%, both the highest since February 2020.

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LONDON – Italian government bonds underperformed their eurozone counterparts on Tuesday as markets remained focused on the path of US monetary policy normalization and surging inflation.

The Italian 10-year bond yield, which has been converted to a new benchmark, rose 1.38% after hitting its highest level since June 2020 at 1.397%. .

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TOKYO – Japanese government bond (JGB) yields rose on Tuesday, following firmer moves in overnight US Treasury yields that helped offset relatively strong results from the country’s bond-buying trades. Bank of Japan.

The 10-year JGB yield increased 1.5 basis points to 0.145% and the 20-year JGB yield increased 0.5 basis points to 0.525%.

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Gold prices firmed above the $ 1,800 mark on Tuesday, supported by a drop in the dollar and US Treasury yields, as investors waited for indications of the President’s expected political tightening. Federal Reserve, Jerome Powell.

Spot gold was last up 0.1% to $ 1,803.20 an ounce at 9:47 am ET (1447 GMT). US gold futures rose 0.3% to $ 1,804.00.

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Chinese stainless steel futures jumped more than 5% on Tuesday, spurred by tight supply issues as producers cut production, while high commodity prices also offered support.

The most actively traded stainless steel contract on the Shanghai Futures Exchange, for delivery in February, jumped 5.3% to 17,920 yuan ($ 2,812.39) per tonne.

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Nickel prices hit their highest level in nearly a decade on Tuesday, with lower global inventories indicating strong demand as a London Metal Exchange (LME) blackout hit trade.

The three-month benchmark nickel on the LME rose 5% to $ 21,430 per tonne at 5:20 p.m. GMT, its highest level since reaching $ 21,850 in February 2012.

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Oil hit over $ 83 a barrel on Tuesday, supported by tight supply and expectations that increasing coronavirus cases and the spread of the Omicron variant will not derail a recovery in global demand.

Brent crude rose $ 2.6, or 3.22%, to $ 83.46 a barrel at 11:30 a.m. ET (4:30 p.m. GMT), its highest level since early November, after losing 1% in the previous session.

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Malaysian palm oil futures reversed their losses and hit a nearly 10-week high on Tuesday, bolstered by concerns over tight supply after official figures showed a larger-than-expected drop in prices. December stocks.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed at 43 ringgits, or 0.8%, at 5,069 ringgits ($ 1,210.50) per tonne, its highest high level since November 3.

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Japanese rubber futures slipped on Tuesday, as the rally in the yen against the dollar prompted the selloff, amid fears that the spread of the Omicron coronavirus variant around the world could slow global demand for the material have shaken market sentiment.

Osaka Exchange’s rubber contract for June delivery ended at 1.9 yen, or 0.8%, down to 239.5 yen ($ 2.1) per kg. Japanese financial markets were closed on Monday for a public holiday.

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Pay off external debt or finance essential imports Sun, 09 Jan 2022 18:08:40 +0000

By Dr Roshan Perera and Dr Sarath Rajapatirana

The country’s available foreign reserves can be used either to repay foreign creditors or to finance imports of essential goods and services required by its citizens. This is the dilemma Sri Lanka faces today. Repaying the full value of the bonds using the limited foreign exchange reserves available would provide an exceptional gain to those who currently hold these bonds (1). But it will come at a great cost to the citizens of the country who will face shortages of essentials like food, medicine and fuel.

Under these circumstances, it is in the best interests of all of its citizens that the government defer payment of the $ 500 million International Sovereign Bond (ISB) due January 18, 2022, until the economy can recover and rebuild completely.

Just as an individual with co-morbidities is more likely to develop serious illness if infected with Covid-19 and more likely to require hospitalization and even treatment in an intensive care unit, Sri Lanka was vulnerable to economic shocks. long before Covid-19 hits. The country was already facing several macroeconomic challenges; moderate economic growth and an unsustainable fiscal situation. Although a rigorous consolidation program has been put in place to put public finances back on a more sustainable path, sweeping tax changes implemented in late 2019 have reversed this process, with negative consequences for public revenue collection. Weakness of the external sector due to high repayments of external debt and insufficient foreign exchange reserves to service these debts. The Covid-19 has only exacerbated these macroeconomic challenges. And as a patient who gets over the worst of Covid-19 has a long road to recovery; Sri Lanka’s economy faces many challenges getting back on track.

The appearance of Covid-19 in early 2020 only worsened an already gloomy macroeconomic situation. The country has lost the confidence of international markets and the sovereign’s ability to renew its external debt has become difficult, if not impossible. Under these circumstances, there was a strong case for sovereign debt restructuring. But the response from the government and the Central Bank of Sri Lanka (CBSL) was a firm “no”. The argument was that Sri Lanka had never defaulted on its debt and was not going to do so now. The official position was also that the government had a “plan” to repay its debt and therefore there was no reason to engage in a debt restructuring exercise. However, Sri Lanka faced high debt sustainability risks: the debt-to-gross domestic product (GDP) ratio at 110% was one of the highest in history and interest payments on revenue over 70% were among the highest in the world.

Fast forward to 2022. The country’s foreign exchange reserves have declined to $ 3.1 billion (2). Usable reserves are much lower. CBSL has sold more than $ 200 million of the country’s gold reserves to meet its debt obligations. In the first week of 2022, CBSL announced new swap facilities and its commitment to repay the $ 500 million International Sovereign Bond (ISB) due in January. According to Central Bank statistics, in addition to the BSI payment, there are predetermined outflows of foreign exchange reserves amounting to $ 1.3 billion in the first two months of 2022.

In addition, based on trade data for the past five years, the country has on average a trade deficit of around $ 2 billion to finance in the first quarter of the year (Table 1). With expected tourism flows threatened by the appearance of the Omicron variant and the continuing decline in workers’ remittances, funding this external current account deficit will add further pressure on available foreign exchange reserves. India, which accounted for around 20% of recent tourist arrivals, is now forcing returnees to the country to self-quarantine. This will probably further curb tourist arrivals.

In this context, the country faces a trade-off between using its limited foreign reserves to repay its debt or using them to finance essential imports. $ 500 million is enough to finance fuel imports for five months; or pharmaceuticals for one year; or dairy products for a year and a half; or fertilizer for two years.

Table 1: Summary of the performance of the external sector Q1 – 2017 to 2021 (millions $)

Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021
Exports 2,774 2 989 3 156 2,650 2 982
Imports 5,279 5,971 4 817 4,503 5,041
of which sugar and confectionery 63.8 88.1 48.9 73.1 137.4
Medical pharmaceuticals 125.2 130.0 121.8 125.4 143.8
Fuel 882.6 1075.2 1,019 948.2 977.2
Trade balance -2,505 -2 982 -1.661 -1 853 -2,059
Tourism income 1,122 1,329 1,396 682 13
Workers’ discounts 1 911 1 979 1,617 1,600 1,867
Global balance -176 -311 912 143 -1 101
International reserves (billion $) 5.1 7.3 7.6 7.5 4.1
(Months of imports) 3.1 4.1 4.3 4.6 2.9

Therefore, it is in the best interests of the country and its citizens that the government postpone paying its debt and use its limited foreign reserves to ensure an uninterrupted supply of essential imports. But it requires a plan. To minimize the cost to the economy, the government must immediately engage its creditors in a debt restructuring exercise. This will require a Debt Sustainability Analysis (DSA) by a credible agency to identify the resources needed for debt relief and the economic adjustment needed to put the country back on a sustainable path (3). This will be essential to bring creditors to the negotiating table and assure them that the country is able and willing to repay its debt obligations in the future.

The cost of not restructuring is much higher. A non-negotiated default (if and when the country runs out of options to service its debt) would result in a greater loss of production, loss of access to finance, or a high cost of future borrowing for the sovereign . It could even spill over into the national banking sector, triggering a banking or financial crisis.

The consequences are clear. What will we choose?

The references:

Sri Lankan sovereign bondholders have been anticipating debt restructuring for over a year and a half and the losses have been reflected on the market basis.Foreign exchange reserves at the end of December 2021 reached 3.1 billion US dollars with the inclusion of the swap with the People’s Bank of China which had been excluded in previous months. Given that the IMF has just completed its Article IV review, this assessment has likely already been undertaken.

(Dr Roshan Perera is Principal Investigator at the Advocata Institute and former Director of CBSL. Dr Sarath Rajapatirana is the Chair of the Academic Program at the Advocata Institute and former Economic Advisor to the World Bank. He has served as the Director and the principal author of the World Development Report 1987 on trade and industrialization. The Advocata Institute is an independent think tank on public policy)


The views and opinions expressed in this column are those of the authors and do not necessarily reflect those of this publication.

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Issue price of gold bonds set at Rs 4,786 / g; The subscription opens on Monday Sat, 08 Jan 2022 05:59:43 +0000

Mumbai, January 7 (PTI) The issue price for the next tranche of the Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from Monday, has been set at Rs 4,786 per gram, announced Friday the RBI.

The Sovereign Gold Bond Scheme 2021-22 – Series IX will be open for subscription for the period from January 10 to 14, 2022.

The face value of the bond “stands at Rs 4,786 per gram of gold,” the central bank said in a statement.

The Indian government, in consultation with the Reserve Bank, has decided to offer a discount of Rs 50 per gram less than face value to investors who apply online and payment against demand is done digitally.

“For these investors, the issue price of the gold bonds will be Rs 4,736 per gram of gold,” the RBI said.

The issue price of Series VIII, which was open for subscription from November 29 to December 3, 2021, was Rs 4,791 per gram of gold.

The RBI issues the bonds on behalf of the Indian government.

The bonds will be sold through Stock Holding Corporation of India Limited (SHCIL) banks, designated post offices and recognized stock exchanges – NSE and BSE.

The program was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the national savings – used for the purchase of gold – into financial savings.

The bond price is set in Indian rupees based on the simple average of the closing prices of 999 purity gold, published by the India Bullion and Jewelers Association for the last three working days of the week before the subscription period.

Bonds are denominated in multiples of gram (s) of gold with a base unit of one gram. The term of the bond will be 8 years with an exit option after the 5th year to be exercised at the next interest payment dates.

The minimum authorized investment is one gram of gold. The maximum subscription limit is 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities by fiscal (April-March).

The Know Your Customer (KYC) standards will be the same as for the purchase of physical gold.

The program was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the national savings – used for the purchase of gold – to financial savings.

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Municipal Court of Challenge | Local crime Thu, 06 Jan 2022 06:00:00 +0000

Douglas Blade, 50, of Hicksville, appeared on video indictment for violating a protection order, a fifth degree felony. Blade waived the preliminary hearing and the case went to the Defiance County Court of Common Pleas. Bond was changed to $ 25,000 with 10% allowed.

All preliminary hearings: Raynaldo Garcia, 47, Deshler, domestic violence; Derek Wagner, 38, Holgate, domestic violence; Lance Thompson, 40, 1112 Perry St., driving without a license; Kyondra Redeemer, 27, 1221 Ayersville Ave., driving with suspension; Christopher Durkin, 19, 810 Washington Ave., OVI, speed; Timothy Bower, 43, Delta, two flight supervisors; Bishop Roberson, 23, 721 Stratton Ave., criminal injury, criminal trespass, disorderly conduct.

Forfeiture of Bonds: Christopher Foor, 34, 1724 Elmwood Drive, Unconfined Dog ($ 125); Alex Yocklin, 35, 1991 S. Clinton St., Failed to Confinement Dog ($ 125).

Sentenced: Joshua Walters, 33, Hicksville, driving with suspension, $ 100 fine; speed, $ 55 fine.

Cody Steel, 27, 1175 Anthony Wayne Blvd., obstruction of official business, $ 150 / $ 100 suspended fine, 10 days suspended sentence, no similar offense for one year; disorderly conduct with intoxication, fine of $ 50.

Eric Rosebrook, 46, 2083 Ginter Road, assault, $ 500 / $ 250 suspended fine, 90 days suspended sentence, no similar violation and no contact with victims for two years, obey order to ‘contact ban after conviction, anger management assessment; threatening aggravated, fired.

Daniel Minnick, 27, Bristol, Tennessee, OVI, $ 625 fine / $ 250 suspended, 30 days in jail / 24 days suspended, one year license suspension, no similar offense for two years; driving under suspension, tinted windows, no seat belts, all licensed.

Ronnie Smith, 39, Paulding, telecommunications harassment, $ 500 suspended fine, 180 days in jail / 179 days suspended, no similar offense for two years; no seat belt, $ 30 fine.

Mark Johnson, 61, Antwerp, persistent disorderly conduct, $ 250 fine / $ 200 suspended sentence, 30 days suspended prison sentence, no similar violation and no contact with victim for two years, obey no-order post-conviction contact, anger management assessment; Ronnie Smith, 39, Paulding, telecommunications harassment, $ 500 suspended fine, 180 days in jail / 179 days suspended, no similar violation and no contact with victim for two years, obey order no – post-conviction contact; Randy Hebb, 51, Napoleon, domestic violation, $ 500 fine / $ 400 suspended, 90 days in jail / 89 days suspended, no similar violation and no contact with victim for two years, obey order of post-conviction non-contact, anger management assessment; Matthew Keber, 34, 26637 County Road 42, persistent disorderly driving, $ 250 fine / $ 150 suspended, 30 days in jail / 29 days suspended, no similar offense for two years; Richard Sheets, 73, 4859 Glenburg Road, domestic violence, $ 500 fine / $ 400 suspended, 90 days in jail / 89 days suspended, no similar violation and no contact with victims for two years, obey the post-conviction non-contact order, continue counseling; Clint Krill, 41, 5414 The Bend Road, domestic violence, $ 500 fine / $ 400 suspended sentence, 180 days in jail / 178 days suspended, no similar violation and no contact with victim for two years, obey l ‘post-conviction non-contact order, anger management assessment; Heather Hersey, 41, 400 Greenler St., suspended driving, $ 500 fine / $ 250 suspended, 30 days in jail / 27 days suspended, no similar offense for two years; Christopher Beach, 46, 12459 Fruit Ridge Road, no operator license, $ 100 fine; Dereck Landwehr, 29, Kunkle, suspended driving, $ 250 fine, 30 days in jail / 27 days in suspension, no similar offense for two years.

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Five ETF trends to watch in 2022 Tue, 04 Jan 2022 07:03:49 +0000

After another year of impressive growth for the European ETF industry – assets reached $ 1.5 billion at the end of 2021 – it’s easy to anticipate another record-breaking year of gains by 2022.

However, beyond the headlines, several key themes have emerged over the past 12 months that may well shape the industry over the next year or so.

Many of these trends are in their infancy, while for some it is a perpetual debate, but all are likely to cross paths with investors at some point in the near future.

With that in mind, here are the top five ETF trends to watch in 2022.

1. Direct indexing

There was some surprise and dismay within the investment industry when Prince Harry and Meghan announced they would be joining ethical direct index manager Ethic in October of last year.

Although pioneers in their own right, the asset management giants have long been intrigued by direct indexing and have sucked platforms left, right and center in an effort to shorten their path to owning the complex technology involved.

Direct indexing means that a portfolio can be fully personalized according to the client’s preferences, for example by excluding stocks that contribute to global warming or by prioritizing high-quality national champions.

It is hailed as the next frontier of asset management by some, investors are also able to access certain benefits such as reducing tax obligations or removing overlapping exposure to large equity positions. held elsewhere.

However, detractors are wary of a product that is essentially active management by the end investor, a job in which many professional fund managers fail to benchmark.

Whatever your opinion, consultancy firm Cerulli Associates has predicted that direct indexing will increase at an annual rate of over 12% over the next five years, exceeding the expected growth for ETFs and other investment vehicles, so expect to see a lot more activity in this space for 2022 and beyond.

2. Common ownership

Like the dark clouds building in the distance, common ownership issues between the “big three” vendors – BlackRock, Vanguard, and State Street Global Advisors – have the potential to create big problems in the years to come. to come.

More than in 2022, it has been dubbed the ‘defining battleground’ for the ETF industry over the next decade, in which the ‘big three’ could hold up to 33% of shareholders’ votes. by 2032 on the current trajectory of asset collection, compared to around 20% today.

John Coates of Harvard Law School, in an article titled The twelve problem, said it could produce the greatest concentration of economic control in our lifetime.

BlackRock has taken steps to address the issue by offering asset owners in 40% of its $ 4.8 billion equity index funds the ability to vote directly with the companies, instead of the company participating. itself, but a lack of transparency on the owner of the ETF, due to secondary market trading means that problems persist.

The “big three” will likely have to take action to prevent future regulations limiting their ownership and 2022 could see action taken in this area.

3. Inflation

The defining characteristic for many investors this year will be their inflation outlook.

The debate over whether the recent spike in inflation – which reached its highest level since 1982 in late November – is transitory or here to last is likely to linger long into the new year.

A recent survey conducted by ETF flows and Amundi highlighted how controversial the subject is, with 44% deeming it “transitory” while 41% anticipating regime change. Additionally, 81% said inflation will dominate the market outlook in 2022.

Investors will base much of their asset allocation decisions on where inflation lands over the next year, with a spike forcing central banks to tighten monetary policy faster than market expectations. , while lack of action could cause savings to overheat.

Higher-than-expected inflation could trigger a massive sell-off of bonds, especially longer-dated government bonds, which are more sensitive to interest rate changes than corporate bonds.

If inflation persists, we can expect flows to continue to move into commodity ETFs, ultra-short bond ETFs, and the traditional safe haven hedge of gold ETFs.

4. Regulation: SFDR, CSDR and consolidated band

Despite moving targets and postponing the implementation of phase two of the Sustainable Finance Disclosure Regulation (SFDR) – this time until January 2023 – asset managers across Europe will prepare with notoriously complex regulations.

Some of the largest European asset managers have already positioned themselves, as well as their product ranges, to be labeled Article 8 or 9 of the SFDR, taking up the commercial advantage of the labels.

Despite this, the detailed rules for the taxonomy selection criteria – also slated for January 2023 – will mean asset managers will need to back up these claims with evidence, while it is not incomprehensible that further adjustments to the taxonomy SFDR will be implemented.

A more imminent piece of regulation for the ETF industry is the rollout of central securities depository settlement (CDSR) scheduled for February, aimed at streamlining settlement standards across Europe.

It is hoped that the regulation will bring further harmonization for UCITS ETFs through the implementation of common features.

Also, expect to hear more about the introduction of Consolidated Band in Europe, following the publication of the European Commission’s plan to introduce the mechanism in November. The long-awaited reforms will provide data on stock transactions “as close as possible to real time”, seen as crucial for the next phase of ETF growth in the region.

5. Emphasize the “S” in ESG

Last year has been another important year for ESG investing, as around half of the flows have accumulated in ESG ETFs. However, a large portion of the flows were destined for environment-focused ETFs with many new launches targeting climate-related goals, such as the Paris Aligned Benchmark.

There are signs, however, that the industry may be paying more attention to the “social” pillar of ESG with more product innovation likely this year.

One of the harshest realities brought to light by the pandemic was how it disproportionately affected less privileged social classes. Speaking to ETF flows‘s Big Call: ESG Investors Forum In November, Sebastian Schiele, sales manager for passive EMEA and APAC mandates at DWS, said this was an area for innovation.

He said DWS was working with index providers to “deliver and create more personalized and thematic benchmarks” that focus on the “S” pillar, targeting companies that have a positive impact on different aspects of society.

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