Moody’s: Africa struggles to catch up with emerging market debt issues...

Moody’s said Tuesday that the world’s poorest countries are struggling with the roads of global debt markets, despite growing bond issues from the largest emerging markets and the rest of the world.

With $ 488 billion in international bond issuances from emerging markets – denominated in dollars and other major currencies – sold by countries that need to fill the holes created by Covid in their budgets this year, last year’s record number of $ 590 billion will not hold.

Middle Eastern governments have contributed more than a third of all sovereign issuances to emerging markets this year as they attempt to offset lost oil revenues. But sub-Saharan Africa did not sell any bonds between July and September.

“Investment-rated debt issuers are taking full advantage of the attractive financing conditions in global emerging markets,” said Rahul Ghosh, senior vice president at Moody’s.

“But the picture is completely different for the lowest-rated borrowers, as market approaches are still difficult,” he added, referring to that disparity as a “two-speed recovery.”

The United Arab Emirates, Qatar and Saudi Arabia issued the most debt instruments this year. Indonesia, Romania and Mexico raised more than $ 10 billion, and sources told Reuters today that China is preparing to issue bonds of $ 6 billion.