“Zambia remains appreciative of the significant effort being asked of all Zambia’s creditors - and particularly our Chinese creditors,” the statement said. The problem, it said in a statement, was slowness, not China. When the Financial Times reported that Musokotwane had expressed frustration with China’s role, the Zambian government was quick to clarify. US Treasury officials have intervened, seeking a deal acceptable to all creditors while making clear that the failure to reach an agreement so far was attributable to Beijing, which has been making some eye-popping demands these essentially require that Western taxpayers subsidize bad loans made by the Chinese state. Situmbeko Musokotwane has been doing what he can to restructure about $17bn in foreign debt, a third of it owed to China. "The T-bills are telling us that money market funds and others are avoiding bills that could be impacted by a government shutdown," said Steve Sosnick, chief strategist at Interactive Brokers.Zambia is a poster child for a new and worrying development among debt-laden developing nations, as its hard-pressed finance minister illustrated on February 13. Three-month T-bill yields hit a new 22-year peak of 5.318% on Thursday. Some Treasury bills (T-bills) are featuring a premium in their yields that may be tied to an elevated default risk, according to some analysts. The collections brought total deposits into the Treasury General Account at the Federal Reserve to $283.53 billion on that day, with a closing balance of $252.55 billion after withdrawals. Treasury brought in $129.82 billion in total tax receipts on April 18, the annual tax filing deadline. It can use cash on hand and extraordinary measures to generate cash once the debt limit is reached. WHAT CAN THE TREASURY DO TO MEET ITS OBLIGATIONS? the area of focus has now been pulled forward to June, or even as early as late May," BMO Capital Markets analysts said. "Whereas there was once a time when the Treasury Department was seen as having sufficient funding to reach August or even September. ![]() But if receipts finish down by less than 30%, a late July deadline is more likely. Goldman Sachs analysts estimated that if April tax receipts are down by 35% or more year on year, the Treasury could announce an early June debt limit deadline. Some analysts had forecast the government would exhaust its cash and borrowing capacity - the so-called "X Date" - sometime in the third or fourth quarter, but weaker-than-expected tax receipts for the April filing season could pull that deadline forward. Treasury Secretary Janet Yellen said in January the government could pay its bills only through early June without increasing the limit, which the government hit in January. ![]() government can borrow to meet its financial obligations. The debt ceiling is the maximum amount the U.S. Here is a Q&A about the implications for markets: WHAT IS THE DEBT CEILING? Some investors worry the Republican party's narrow majority in Congress could make it harder to reach a compromise this time. credit rating for the first time, sending financial markets reeling. That has not always been the case, however: A protracted standoff in 2011 prompted Standard & Poor's to downgrade the U.S. Recurring legislative standoffs over the debt limits this last decade have largely been resolved before they could ripple out into markets. ![]() government's deadline to raise the $31.4 trillion debt ceiling could be sooner than expected, analysts have said, pulling forward the risk of a debt default that could have wide repercussions across global financial markets. yet again, giving investors another worry for markets this year. NEW YORK, April 20 (Reuters) - A debt ceiling fight is looming in the U.S.
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