Government bonds

Uganda offers government bonds to mobile money users

February 12, 2019 rfi Leave a Comment

The initiative aims to enable Ugandans to use their mobile money wallets to directly purchase government securities – “effectively enhancing financial inclusion and economic growth,” according to a statement. The government hopes more Ugandans will invest in the sovereign debt and it will reach the “individual retail investor especially those in rural areas”, the cabinet statement said. The advantages for the government include the ability to widen the scope of bond sales beyond “commercial banks, offshore players and institutional investors”, the statement added, referring to the limited choice this currently gives the country’s authorities. Using mobile money will mean retail investors will not have to physically make bids for bonds at their bank branches and instead simply transfer funds from their mobile money wallets. It is hoped that the move will have an overall impact on economic growth in Uganda given that government debt is used … [Read more...] about Uganda offers government bonds to mobile money users

Eight banks formed European government bonds cartel EU watchdog finds

January 30, 2019 neweurope Leave a Comment

The European Union’s antitrust authority said on January 31 that it has found and charged eight banks for operating a cartel while trading Eurozone government bonds between 2007 and 2012. The period in question was, according to the European Commission, “a time of intense activity in Eurozone government bonds” as many of the 19 governments who use the common currency had difficulties servicing their debt. The EU executive found that some traders at the banks exchanged commercially sensitive information and coordinated trading strategies on euro-denominated bonds, mainly through online chat rooms. Brussels’ concern is that at different periods between 2007 and 2012, the eight banks took part in a “collusive scheme” that focused on distorting competition when acquiring and trading such bonds. If these preliminary findings, the European Commission that this would violate the EU’s laws on behalf of the eight banks, while at the … [Read more...] about Eight banks formed European government bonds cartel EU watchdog finds

Qatar to buy $500 mn of Lebanese government bonds

January 21, 2019 rfi Leave a Comment

Wealthy Qatar said on Monday it will purchase $500 million of government bonds in debt-ridden Lebanon a day after the country's emir visited Beirut to attend the Arab economic summit. "The state of Qatar will buy Lebanese government bonds valued at 500 million US dollars," Foreign Minister Mohammed bin Abdulrahman Al-Thani said in a statement carried by the Qatar News Agency. The purchase would "strengthen the Lebanese economy", and the decision was taken after a meeting on Monday between Qatar's Emir Sheikh Tamim bin Hamad Al-Thani and Lebanese President Michel Aoun, he said. "We wish stability and prosperity for the Lebanese republic and the Lebanese people, and that the Lebanese economy will recover." The move comes amid huge financial strains for the Lebanese government. Lebanon's finance minister spooked markets earlier this month with comments about the country's public debt, thought to be among one of the worst in the world. Lebanon's economy has looked on the brink of collapse … [Read more...] about Qatar to buy $500 mn of Lebanese government bonds

İsrael government bond sale raises record €2.5 billion

January 10, 2019 trend Leave a Comment

The Finance Ministry of Israel raised a record €2.5 billion ($2.88bn.) from the sale of government bonds abroad, it announced Wednesday, Trend reports referring to The Jerusalem Post. The dual-tranche bond issue in London, the country's largest in international markets to date, was the subject of peak demand worth some €15bn. ($17.3bn.), the ministry said. The government's 10-year €1.25bn. bond offers an interest rate of 1.5% and the 30-year €1.25bn. bond offers an interest rate of 2.5%. This is the first time that the government has issued a 30-year euro bond, and is one of only a few non-European countries to have done so. The 10-year bond was issued at 75 basis points above mid-swaps, and the 30-year bond at 115bps above mid-swaps. "The Israeli economy is enjoying excellent years of high growth, full employment and a low debt-to-GDP ratio," said Finance Minister Moshe Kahlon. "This successful offering is an expression of confidence in the Israeli economy by … [Read more...] about İsrael government bond sale raises record €2.5 billion