Each week Frontier Strategy Group’s global team shares their view on key media stories, and what the implications are for businesses that operate in emerging markets. For more information about how to contact our analysts, send us an email.
Antonio Martinez on “Winning Friends is an Expensive Business”
“Venezuela desperately needs to restructure its oil-for-loans program with China. The alternative is a default sooner rather than later, and even with a restructuring of these financing commitments Venezuela may still be forced to default by Q4 2016. But foreign financing for Venezuela will be difficult, given the country’s inability and unwillingness to take necessary adjustment measures.”
Link to article | Read More of Antonio’s Commentary | Have a Question for Antonio?
Mark McNamee on “Ukraine Introduces New Energy Tariffs to Meet IMF Demands”
“Liberalizing gas prices was a relatively easy IMF demand to enact as heating season has ended. Perhaps this will help Ukraine receive delayed IMF funding, as well as frozen US and EU money; however, it remains likely that the IMF will demand further, more substantive anti-corruption reforms before disbursing funds. Firms will also see minimally more inflation pressure from this decision.”
Link to article | Read More of Mark’s Commentary | Have a Question for Mark?
Alec Lee on “McCarthy ‘Hopeful’ House Will Pass Puerto Rico Bill by July 1”
“Should the US Congress be unable to find a workable solution for Puerto Rico by July 1 (when the island will produce its new budget), companies should expect to see significant new spending cuts. As without a resolution to the ongoing debt crisis, Puerto Rico would be unable to access international capital markets and be forced to fund any new spending directly from falling tax revenue. “
Link to article | Read More of Alec’s Commentary | Have a Question for Alec?
Cheng Siew Chua on “1MDB In Default, Declares Gulf Fund, After Final Deadline”
“1MDB has defaulted on a US$ 1.75 billion bond after missing a US$50 million interest payment amid a dispute with Abu Dhabi’s IPIC over which party should make the payment. This development will deepen the crisis surrounding the country’s Prime Minister and dampen investor sentiment on the ground.”
Link to article | Have a Question for Cheng Siew Chua?
The post What Our Analysts Are Reading – 4/29/2016 appeared first on Emerging Markets Insights.