₦airaland Forum

your government is already doing it

according to Bloomberg

rvp20182:
Kenya has an unfunded public pension. There is no savings. It all from taxes. Therefore you cannot use their money to pay debt. Kenya pensions do know what it means to miss a pension. This is not Nigeria.

gallivant:
Post hobbit settlements.

Zombie
you are being asked to post your rural areas

gallivant:
Ghanains are all talk. Waste of bandwidth!

attention seeking

post your communities

they never stop posting resorts

They are so ashamed of their country such that, the only thing they can post are resorts

Austine1212:
Kiambu rural area? Lol

Acadavah:
Where did you get that data that Ghana's GDP is $68b?

Ministry of Finance

i think your brain is hurting so you are confusing it with upstream

Upstreaming does not bring in much money like downstream

mtisTheQubit:
sorry man, i think ya confusing with upstream..just saying

90% of all Nigeria Oil money comes from the downstream sector

There, the price of a Barrel of oil does not matter because prices hardly fall

mtisTheQubit:
how far can Naija survive with $50 per barrel..am telling you Sammy Naija need to diversify..invest in your startups an tech field

samorobo:
Keep shut every tom,dick and Harry here knows 90% of nairobi pics posted here are super edited..heck even SA knows...see dude we are not kids...go tell that to those unexposed dwellers in Pokot or kwangware...

you forgot to add

more than double of Kenya's PPP

samorobo:
Lol instead of yapping about gr8 which by the way is non existent and only exist in the figment of your imagination,Tell us why your PPP trails behind Ghana a country of 28m... honestly talk is very cheap..very,veryyyy cheap

rvp20182:
5% is pretty good. I see you 1yr to date is -1% while kenya is -4%. So maybe this time round the won't be teeth gnashing.

Your Government is defaulting on Local debt

rvp20182:
Cedis depreciation took care of all that. Just update yourself - your economy right now is 55B dollars. Maybe you do yet another rebasing.

you still dont know how GDP works

Since the beginning of the lockdown, the Cedi has only depreciated by 5%



Let me know after you finish dreaming and Astro projecting in your dreams

So how will Kenya pay that huge debt whose servicing is way above the export value of Kenya economy?

rvp20182:
So there was no lock-down. You cannot have your cake and eat it. The last we saw - you had stocked up yams and cassava to last you a month

The was a lockdown but Manufacturers and farmers had a special pass to carry on manufacturing activities

We placed a sensible lockdown that ensured that we don't become food insecure or crumble manufacturing

rvp20182:
So when you were in lockdown - what economic activities were you engaged in apart from mating. Cedis-USD already captured all that mating and no work done.

All economic activities in the production economy were still going on
only the service economy suffered by 55%

rvp20182:
Check USD - Cedis and update yourself. Your GDP has dropped by I think 15%. that is what happens when you do a copy-paste lockdown for a month- 1 month GDP is 10% off. That is why nominal GDP is the gold standard...the dollar is a pretty good predictor of the global economy.

Ghana's GDP has not dropped by even a single percent

rvp20182:
What is Ghana GDP today - 58B dollars I bet or less - divide by 30M - you're below 2,000

Ghana Nominal GDP is 68 billion



Bringing our Nominal GDP per Cap to 2,300 plus dollars
and PPP to 7,000 dollars plus

rvp20182:
This was last week
https://www.businessdailyafrica.com/markets/capital/Investors-horizon-shortens-as-91-day-paper/4259442-5535190-fefktqz/index.html

Meanwhile Ghana was under lockdown.

Kenya is HUMMING ALONG.

Anyway
Ghana is not under lockdown

The risk-free government paper are no longer RISK FREE.

Kenya gov't is contemplating deferring payment of interest on maturing Treasury bills and bonds.

This is simply a declaration of a default on domestic debt

rvp20182:
I see you're into the quoting nonsense territory. Kenya is no 140 in GDP Per capita nominal. Ghana is 137 - and btw them is India and Nigeria.
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita

And if this updated - I bet Kenya has overtaken Ghana

divide 88 billion dollars (9.5 Tr kshs) by whatever you pop is

dumb dumb

And Ghana GDP per cap is way above yours

rvp20182:
Dream on. Treasury are already pass their projected borrowing and just playing sweat. This was COVID period - they got 400M dollars
https://khusoko.com/2020/04/12/9-year-treasury-bond-oversubscribed-by-114pct-central-bank-accepts-ksh-39bn/

I'm not dreaming

Kenya CBK couldn't raise Treasury Bills

I didn't mention Bond
https://www.businessdailyafrica.com/markets/marketnews/T-bill-auction-fails-to-raise-enough-cash-for-Sh104bn-maturities/3815534-5542620-ows5ulz/index.html

The Central Bank of Kenya (CBK) failed to raise enough in Treasury bill auctions in April to match maturing short-term debt as uncertainty over the coronavirus haunted investors.

and it didnt get offers because kenyans are already pressed by poverty

rvp20182:
CBK doesn't PAY gov debts. Treasury own the debt. CBK is the Treasury Bank.

CBK is the gov banker. Your banker doesn't pay your debts.

Treasury (Ministry of Finance) just instruct the CBK to issue Treasury bills or bonds at certain price...and Treasury will decide to accept or not...if it get offers.

CBK is even praying that all interest payment seize

They have order that pension payment stop.
Your government is trying to use poor workers pension to pay debt interest

rvp20182:
There you go scrambling - find out how much interest CBK is dishing out. Ghana will not get there in 50yrs.

Kenya base lending rate/mpr is 7%.

So obviously investors will play ball....but treasury is not in hurry.

But Ghana MPR rate is 14.5%

And you hobbit - will get bank loan at 25%

Financial analysts say Kenya may require at least 2 years of debt relief to avert an economic crisis in the wake of the government’s shrinking revenue against the backdrop of COVID-19 pandemic.

Kenya is exploring debt-relief options and considering a freeze of interest payments on pension assets to deal with the coronavirus pandemic
according to Bloomberg

rvp20182:
Kenya is not Ghana. We will borrow 7B and pay 7B. It calls debt re-financing. and we will ring-fenced our 21B dollars revenues for development and running gov.

of course you are not Ghana

You are in a worse situation and desperate

The Central Bank of Kenya (CBK) failed to raise enough in Treasury bill auctions in April to match maturing short-term debt as uncertainty over the coronavirus haunted investors.

Your government can't even access local debt instrument

keep dreaming

Ghana is at 63% and 80% of Ghana's debt were spent on economic activities that can pay
All the companies are repaying Ghana's debt.In actuality, Ghana government a 20% debt to GDP but since government used it leverage to borrow for companies those debt are also accounted unto them.


Kenya GDP is 88 billion
as to how u managed to sell the 99 billion idea, only you can tell.
always massaging figures.

The other problem with the IMF facility is it comes with disclosure requirements -that you disclose your debt sustainability stats. That might not be a good reading for KE. If it shows HIGH RISK, that comes with other repercussions. But an IMF program was needed like yesterday!

rvp20182:
Update those figures with the latest GDP figures. Kenya's total debt as of Jan 2020 was around 60B dollars - with GDP of 95B (we had projected to 99-100B) - we are about 63% instead of 60%. That is when sirens bleep red - and they have been - and we are working on reigning on that.

Note::Lower-middle-income country debt sustainability benchmark is 70 percent of GDP

Now for Ghana - last year you were 40% - this year you shot past kenya to 65% - and now with COVID - I bet it's 70%.

That is the definition of being CRAZY.

rvp20182:
We have always had prudent financial management. Our debt plays around 40-60%. Right now we are debt refinancing. We never allow ourselves to take too much debt and crash our economy - and cry to world to come rescue us.

We got brains.

Your debt is 64% right now and that is only the official figure that could be traced

You have sunk yourself into so much debt such that the only way to pay at this moment is to borrow more money and build up more interest payment.

That is a hopeless case

No brain will run to UN to seek 265 million dollars of aid

rvp20182:
https://www.worldbank.org/en/topic/debt/brief/hipc . Look for Ghana there.
Kenya has never been a member of - Heavily Indebted Poor Country (HIPC) Initiative
That is for Ghana and such hopeless countries.

Kenya is the poster boy of the GLOBAL DEPT TRAP

the only way kenya could build a Highway was to sell it sovereignty to China
That speaks to your level of poverty

rvp20182:
Hobbit - sound argumentation 101. You make a case first. Before you draw a conclusion.

Zombie nerve has been ratchet up

So basically

Kenya is at where Ghana was in the late 90s

That is how much poverty your economy has built up

rvp20182:
So Ghana under HIPC - heavily indebted poor countries - did not receive debt relief of 3.5B dollars. That was in 2005. God knows how you managed to ratchet up that much debt when your gdp was probably 6B dollars.

Don't ever compare Kenya with Ghana or Nigeria in matters of macro-economics.