Thursday, July 07, 2005
Money to Burn?
Unbelievable: The Japanese Bank for International Co-operation (JBIC) may be willing to lend to Japanese and other firms wishing to invest in Kenya.
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6 comments:
japanese interest rates in real terms are in the negatives.Banks really PAY you money to borrow money from them so any investment that can bring any tangible profits is highly sought after.Politics though have a way with which programmes get allocated cash..
Even at the G8, Japan is acknowledged as being the largest donor/aid nation
they also have brilliant technology, more cooperation with japan would do us good. Caveat: We cant have our resident jackasses doing so or it will all be for naught.
@anon#1 is right...
JIB/JICA has lent EA Portland Cement oodles of cash & JICA doesn't want to be repaid early! Coz they get about 5% in interest which is "backed" by the Kenyan govt in case of default. EAPCC is doing well & wants to open a new plant in Rumbek Sudan. JICA will lend more if EAPCC asks for it.
EAPCC might find it palatable if they can hedge against the Yen's appreciation or the KShs remains stable vs Yen.
EAPCC - in the past - could not manage their forex exposure coz the antiquated forex controls in the days of the ndegwas did not allow for hedging! Also EAPCC was totally govt controlled thus the managers were morons - political appointees.
Using the various financial tools at its disposal, EAPCC should borrow from the Japanese & expand...
Large amounts of local borrowing fuels unnecessary demand for local funds thus raising the cost to ALL borrowers. SMEs (small & medium enterprises) can't borrow from the Japs & get crowded out by folks like EAPCC, Kenol, ARM, etc
hi
why dont eapcc hedge the yen exposure?I see them crying constantly about it.
anonymous#1
If the Yen/Shilling rate swung the other way (like teh Euro/Shilling has), they will recover their losses, and start booking exchange profits.
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