Post by jakaswanga on Feb 26, 2018 23:56:51 GMT 3
Here is a key event. TREASURY WILL OVERRIDE PARLIAMENT
Patrick Njoroge adressing fellow bankers in New York had, some time back, described the (rates-cap) legislation as temporary! I think a Bloomberg journalist had looked at him with a mocking lick of the pen and asked what kind of sh!t that rates cap law in Nairobi was. Njoroge was intimidated enough to find no intellectual push-back. A few days back the IMF overseer in Nairobi, Jan Mikkelsen, revealed the IMF had suspended Kenya's access to an emergency credit facitily.
Njoroge and Rotich had been hiding the info since June 2017.
Apparently in the wake of this revelation, the FT called Rotich with a direct question: You guys throwing out that sh!t legislation or you telling the IMF to go fak itself with her credit facilities!? Some guys out there are buying the latest Kenyan eurobond coz they wager, if Kenya defaults as Moody intimates, the IMF will make sure they get their cash ---that credit facility guarantee. After that is when the IMF will patiently play debt collector with Kenya! ---Moneyman Rotich, caught out, could only answer the sh!t legislation will go! The protocol didn't bother him. ---For, for the I-caps law to go, every Jubilee Mpig will have to vote for the suspension ammendment if it comes to parliament that is. And such sensitive issues is why Jubilee mpigs have score cards now, to detail how they vote, otherwise diSsidents could get the Alfred Keter treatment. Patrick Njoroge may set a trap for them with BONDS, or like Kalonzo Musyoka and NYS land, Uhuru can author a career-threatening recall.The tresury will repeal it!? effectively usurping the parliament's role. Yap! that's how it goes in neo-colonies.
Patrick Njoroge adressing fellow bankers in New York had, some time back, described the (rates-cap) legislation as temporary! I think a Bloomberg journalist had looked at him with a mocking lick of the pen and asked what kind of sh!t that rates cap law in Nairobi was. Njoroge was intimidated enough to find no intellectual push-back. A few days back the IMF overseer in Nairobi, Jan Mikkelsen, revealed the IMF had suspended Kenya's access to an emergency credit facitily.
Njoroge and Rotich had been hiding the info since June 2017.
Apparently in the wake of this revelation, the FT called Rotich with a direct question: You guys throwing out that sh!t legislation or you telling the IMF to go fak itself with her credit facilities!? Some guys out there are buying the latest Kenyan eurobond coz they wager, if Kenya defaults as Moody intimates, the IMF will make sure they get their cash ---that credit facility guarantee. After that is when the IMF will patiently play debt collector with Kenya! ---Moneyman Rotich, caught out, could only answer the sh!t legislation will go! The protocol didn't bother him. ---For, for the I-caps law to go, every Jubilee Mpig will have to vote for the suspension ammendment if it comes to parliament that is. And such sensitive issues is why Jubilee mpigs have score cards now, to detail how they vote, otherwise diSsidents could get the Alfred Keter treatment. Patrick Njoroge may set a trap for them with BONDS, or like Kalonzo Musyoka and NYS land, Uhuru can author a career-threatening recall.
Costly loans beckon as Rotich commits to rate cap law repeal
Monday February 26 2018
In Summary
Treasury secretary Henry Rotich told the Financial Times on Friday that he will review the cap on bank lending rates that has resulted in a massive fall in loans to the private sector.
This is part of the contentious reforms demanded by the IMF to extend a frozen Sh153 billion ($1.5bn) emergency standby facility that expires next month.
An IMF team is in Nairobi to discuss how the programme could be renewed.
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By LYNET IGADWAH
More by this Author
The Treasury has committed to the International Monetary Fund (IMF) that it will repeal or reform the 18-month-old law capping interest rates in what could set the stage for expensive loans.
Treasury secretary Henry Rotich told the Financial Times on Friday that he will review the cap on bank lending rates that has resulted in a massive fall in loans to the private sector.
This is part of the contentious reforms demanded by the IMF to extend a frozen Sh153 billion ($1.5bn) emergency standby facility that expires next month.
The facility, which is designed to alleviate a balance of payments crisis, had been suspended since last June.
Jan Mikkelsen, the IMF’s Kenya resident representative, said a cut on the budget deficits and review of the legal lending cap were “key” to extending the facility.
An IMF team is in Nairobi to discuss how the programme could be renewed.
The government in September 2016 capped commercial lending rates at four percentage points above the central bank’s benchmark rate, which stands at 10 per cent, and put a minimum deposit interest rate of 70 per cent of the benchmark.
It argued that lenders had failed to lower costs of credit to consumers, despite enjoying some of the highest rates of return on equity in the continent.
But the Central Bank of Kenya said preliminary findings of a joint study with the Treasury on the impact of the rates capping on growth of credit had confirmed a negative impact.
Bankers say they’ve closed some branches, laid off staff and seen their loan book growth slow in response to the cap.
The situation, they say, will become tougher under a new accounting standard that came into force on January 1, which will require them to shift their loss models from incurred to expected.
President Uhuru Kenyatta signed into law the Banking (Amendment) Act 2016 at a time when the average interest rate stood above 18 per cent, a level seen as unaffordable for the dominant SMEs.
Parliament passed the law, meaning it can only be repealed by the House and Treasury must marshal the support of MPs to review the legal caps.
READ: KISERO: Will Kenya ever get out of the debt trap?
ALSO READ: IMF warns over Kenya's rate in taking new debts
Monday February 26 2018
In Summary
Treasury secretary Henry Rotich told the Financial Times on Friday that he will review the cap on bank lending rates that has resulted in a massive fall in loans to the private sector.
This is part of the contentious reforms demanded by the IMF to extend a frozen Sh153 billion ($1.5bn) emergency standby facility that expires next month.
An IMF team is in Nairobi to discuss how the programme could be renewed.
Advertisement
By LYNET IGADWAH
More by this Author
The Treasury has committed to the International Monetary Fund (IMF) that it will repeal or reform the 18-month-old law capping interest rates in what could set the stage for expensive loans.
Treasury secretary Henry Rotich told the Financial Times on Friday that he will review the cap on bank lending rates that has resulted in a massive fall in loans to the private sector.
This is part of the contentious reforms demanded by the IMF to extend a frozen Sh153 billion ($1.5bn) emergency standby facility that expires next month.
The facility, which is designed to alleviate a balance of payments crisis, had been suspended since last June.
Jan Mikkelsen, the IMF’s Kenya resident representative, said a cut on the budget deficits and review of the legal lending cap were “key” to extending the facility.
An IMF team is in Nairobi to discuss how the programme could be renewed.
The government in September 2016 capped commercial lending rates at four percentage points above the central bank’s benchmark rate, which stands at 10 per cent, and put a minimum deposit interest rate of 70 per cent of the benchmark.
It argued that lenders had failed to lower costs of credit to consumers, despite enjoying some of the highest rates of return on equity in the continent.
But the Central Bank of Kenya said preliminary findings of a joint study with the Treasury on the impact of the rates capping on growth of credit had confirmed a negative impact.
Bankers say they’ve closed some branches, laid off staff and seen their loan book growth slow in response to the cap.
The situation, they say, will become tougher under a new accounting standard that came into force on January 1, which will require them to shift their loss models from incurred to expected.
President Uhuru Kenyatta signed into law the Banking (Amendment) Act 2016 at a time when the average interest rate stood above 18 per cent, a level seen as unaffordable for the dominant SMEs.
Parliament passed the law, meaning it can only be repealed by the House and Treasury must marshal the support of MPs to review the legal caps.
READ: KISERO: Will Kenya ever get out of the debt trap?
ALSO READ: IMF warns over Kenya's rate in taking new debts