Kenya Scraps Plans to Sell Eurobonds Amid Africa Debt Talks

(Bloomberg) --

Kenya has abandoned plans to sell commercial debt such as Eurobonds next fiscal year as African countries hold talks with private and institutional creditors about debt-repayment breaks during the coronavirus crisis.

The budget gap of East Africa’s biggest economy is seen rising to 823.2 billion shillings ($7.7 billion) in 2020-21, and will be partly financed via net foreign borrowing of 349.7 billion shillings, according to budget documents.

Kenya is studying the implications of a debt-relief plan led by the G-20 group of nations, Treasury secretary Ukur Yatani said in an interview. “Some conditions may be unfavorable, particularly for those countries already servicing commercial papers like Eurobond,” he said.

Countries benefiting from the G-20 initiative will be required to pledge not to contract new non-concessional debt, disclose all public-sector financial commitments and use the savings to address virus shocks.

©2020 Bloomberg L.P.

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