Kenya is planning to buy back up to a quarter of its $2 billion 2024 international bond before year-end after it secures new loans, central bank governor Kamau Thugge told Reuters, a move aimed at alleviating concerns it can repay the looming debt.
The country is in talks to raise between $500 million and $1 billion in commercial loans from two regional policy banks, Trade & Development Bank and the African Export-Import Bank, Thugge said in an interview on the sidelines of the World Bank and IMF meetings in Marrakech.
Kenya's approach to repaying the $2 billion 2024 bond is being watched closely by overseas investors, given its rising debt repayments, weakening currency and soaring bond yields, which have locked many developing countries out of international capital markets.
Thugge said Kenya is also in talks with the International Monetary Fund (IMF) for an "augmentation" of its loan programme, which is undergoing its sixth review in November, and with the World Bank to add to a $750 million loan planned for March.
The central bank held its main interest rate at 10.5% on Oct. 3. Inflation had edged up to 6.8% in September from 6.7% the month before, having fallen below the 7.5% target in June for the first time in a year.
The country is in talks to raise between $500 million and $1 billion in commercial loans from two regional policy banks, Trade & Development Bank and the African Export-Import Bank, Thugge said in an interview on the sidelines of the World Bank and IMF meetings in Marrakech.
Kenya's approach to repaying the $2 billion 2024 bond is being watched closely by overseas investors, given its rising debt repayments, weakening currency and soaring bond yields, which have locked many developing countries out of international capital markets.
Thugge said Kenya is also in talks with the International Monetary Fund (IMF) for an "augmentation" of its loan programme, which is undergoing its sixth review in November, and with the World Bank to add to a $750 million loan planned for March.
The central bank held its main interest rate at 10.5% on Oct. 3. Inflation had edged up to 6.8% in September from 6.7% the month before, having fallen below the 7.5% target in June for the first time in a year.