Developing world debt is going nowhere — and that’s a barrier to climate goals
Debt relief? What debt relief? Policymakers, investors and campaigners have been left disappointed by a lack of progress by the G20 to agree debt relief measures for poorer nations, Reuters reports. Rich nations are yet to make headway on the G20 Common Framework proposed in the wake of the covid-19 pandemic two years ago as key creditors drag their heels. According to the World Bank, low-income nations face USD 35 bn in debt-service payments to creditors this year, with more than 40% of that debt due to China.
No debt relief, no green transition: Highly indebted poor nations will struggle to gather the financial resources necessary to decarbonize their economies, making meaningful debt relief all the more important, according to The Banker, which cites statements by former World Bank special envoy for climate change Rachel Kyte. “It is very difficult to talk about climate finance or financing a green transition if you are debt distressed,” she said, adding that 60% of low-income countries and 30% of emerging markets are in debt distress.
Are we a step closer to a regional green IPO? The Emirates Central Cooling Systems Corporation (Empower) borrowed USD 1.5 bn from Emirates NBD Bank, in part to fund a special dividend payment ahead of a potential IPO, Bloomberg reports. Empower is looking to raise as much as USD 700 mn from the IPO as early as next week. We bring have more in this morning’s edition of Enterprise Climate.
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EGX30 |
10,258 |
-0.2% (YTD: -14.2%) |
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USD (CBE) |
Buy 19.62 |
Sell 19.73 |
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USD at CIB |
Buy 19.65 |
Sell 19.71 |
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Interest rates CBE |
11.25% deposit |
12.25% lending |
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Tadawul |
12,007 |
+0.4% (YTD: +6.4%) |
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ADX |
10,114 |
-0.2% (YTD: +19.2%) |
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DFM |
3,399 |
0.0% (YTD: +6.3%) |
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S&P 500 |
3,753 |
+2.4% (YTD: -21.3%) |
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FTSE 100 |
6,970 |
+0.4% (YTD: -5.6%) |
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Euro Stoxx 50 |
3,477 |
-0.5% (YTD: -19.1%) |
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Brent crude |
USD 93.50 |
+1.2% |
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Natural gas (Nymex) |
USD 4.96 |
-7.5% |
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Gold |
USD 1,656.30 |
+1.2% |
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BTC |
USD 19,602 |
+2.1% (YTD: -57.6%) |
THE CLOSING BELL-
The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 976.9 mn (3.7% below the 90-day average). International investors were net sellers. The index is down 14.2% YTD.
In the green: GB Auto (+2.0%), Fawry (+1.7%) and Alexandria Containers and Cargo Handling (+1.6%).
In the red: Egypt Kuwait Holding-EGP (-3.7%), Telecom Egypt (-1.9%) and Cleopatra Hospitals (-1.8%).
Asian markets are mostly up in early trading this morning and futures suggest the major European indices will also open in the green, with a similarly upbeat picture shaping up for Wall Street when it opens a little later on.