Rwanda is seeking to postpone debt repayments for at least two years to deal with the economic fallout from the coronavirus pandemic, President Paul Kagame said.
The economy will probably only grow 3.5% this year, from an earlier projection of at least 8%, Kagame said Monday in a virtual media briefing. The central bank has said last year's expansion reached double digits.
The administration is negotiating with lenders to delay repayments and use the money to stimulate economic activity instead, Kagame said. Among the businesses that will require funding is the national carrier, RwandAir, which has announced drastic salary cuts.
“The idea is to retain the disbursements due and reinvest in reviving the economy and fighting the pandemic,” he said. “Some lenders have been positive.”
Kagame didn't specify if he also wanted a moratorium for Rwanda's commercial debt. The country has one Eurobond outstanding, $400 million of notes maturing in 2023. The yield rose 6 basis points to 10.29% as of 10:12 a.m. in London.
Rwanda has implemented one of the most stringent lockdowns in Africa and ordered most of the population to stay indoors.
READ: World Bank Raises Rwanda 2019 Growth Estimate for Second Time
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
