JOHANNESBURG (Reuters) &#8211; South Africa’s banking index opened 4.3% lower on Tuesday, a day after the country’s central bank said it had advised lenders not to pay dividends or bonuses amid the coronavirus outbreak.



The decline in the banking index, which recovered slightly by 0703 to stand 3.7% lower, compared to a 1.36% rise across the <a href="https://www.cnbcafrica.com/videos/2020/03/31/jse-ceo-on-moodys-downgrade-covid-19-impact/">Johannesburg Stock Exchange</a> overall.



(Reporting by Emma Rumney; Editing by Catherine Evans)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21P0VK-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21P0VK-OZABS</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

COVID-19: South Africa eases lockdown to revive battered economy

South African banking index falls over 4% after SARB advises against dividends

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Muyiwa Oni, Regional Head of Equity Research for WA at the Standard Bank Group joins CNBC Africa to unpack CBN Q1 2018 credit conditions survey report and give a credit outlook for the rest of the year.

Unpacking CBN Q1 2018 credit conditions survey report

LILONGWE (Reuters) &#8211; Malawi&#8217;s finance minister hopes the International Monetary Fund&#8217;s approval of a $26.9 million loan could lead to more global lenders unlocking budget support that was suspended three years ago over graft allegations.
The IMF said on Wednesday Malwai’s economy was on the right track after the fund completed its ninth and final review of the country&#8217;s economic performance under a program supported by an extended credit facility (ECF), allowing the global lender to make the loan.
<blockquote>&#8220;This is a very positive development because it signals that we are on the right track with our economic agenda and will help push for the much needed return of budget support,&#8221; Finance Minister Goodall Gondwe told Reuters on Thursday.</blockquote>
The loan brings total disbursements under the ECF arrangement, signed in 2012, to about $191.4 million.
&#8220;Strengthening public financial management, including through strong commitment controls, routine bank reconciliations, and regular fiscal reporting, remains critical to preventing the misappropriation of public funds and rebuilding trust and confidence in the budget process,&#8221; the IMF said in a statement.
Foreign aid has historically accounted for about 40 percent of the national budget.
Western donors led by former colonial ruler Britain froze budget support over a corruption scandal in which public servants siphoned millions of dollars from the public purse.
The World Bank resumed its budget aid to Malawi last month.
(Reporting by Mabvuto Banda; Editing by Olivia Kumwenda-Mtambo, Larry King)

Malawi sees IMF loan approval as signal of donor confidence

Etisalat has been instructed to transfer its 45 percent stake in Etisalat Nigeria to a loan trustee after debt restructuring talks with lenders failed, the Abu Dhabi telecoms company said on Tuesday.
Etisalat Nigeria had been in talks with Nigerian banks to restructure a $1.2 billion loan after missing repayments but those discussions failed to produce an agreement on restructuring the debt, Etisalat said in a statement.
Nigeria&#8217;s financial system, hobbled by lower oil prices and economic recession, has suffered shortages in dollars, making it difficult for companies to make the loan repayments.
Etisalat said its had been notified to transfer its stake by June 23. It said the stake had a carrying value of zero on its books.
An Etisalat Nigeria spokesman said the company was still in discussions with lenders to find a &#8220;non-disruptive&#8221; solution.
Etisalat said its financial exposure to Etisalat Nigeria was related to operational services worth 191 million UAE dirhams ($52 million) and that discussions were ongoing with lenders regarding the use of the Etisalat brand.
($1 = 3.6729 UAE dirham)
(Reporting by Stanley Carvalho and Chijioke Ohuocha; editing by Jason Neely)

Etisalat Nigeria loan restructuring talks fail as lenders step in

TJ Strydom | JOHANNESBURG
South African life insurer MMI Holdings said it will start offering loans and take deposits as part of a deal with lender African Bank, as it looks to revive declining profits.
MMI, the No. 3 long-term insurer in South Africa, has seen profits drop for the past two years as weak growth and poor investment returns weighed on revenues.
The insurer plans to use African Bank to build up a loan book in excess of 10 billion rand ($780 million) over the next five years and to share the profits equally with the bank.
<blockquote>&#8220;African Bank will be the exclusive provider of consumer credit products to MMI, for solutions falling within its product range,&#8221; MMI said, adding that the lender will use the insurer&#8217;s existing sales channels.</blockquote>
African Bank, a lender that grants loans not backed by assets, was rescued and recapitalised by South Africa&#8217;s central bank after its parent African Bank Investments Limited collapsed in 2014.
In April last year, the bank was split into a &#8220;good&#8221; business aimed at attracting new clients, and a new company to mop up old debts.
&#8220;African Bank will act as sponsoring bank to facilitate deposit-taking and extend transactional banking capabilities that MMI wishes to offer to its clients,&#8221; the insurer said in a statement.
MMI also plans to sell to African Bank&#8217;s clients, making its full range of insurance products available to African Bank account holders, with the goal of generating more than 1 billion rand in premiums within five years.
($1 = 12.8432 rand)
(Reporting by TJ Strydom; Editing by Susan Fenton)

South African insurer MMI in lending, sales deal with African Bank

Oludare Mayowa | LAGOS
Nigeria&#8217;s central bank said on Tuesday it will sell $100 million at a special wholesale spot and forwards auction to improve dollar liquidity in the foreign exchange market and curb pressure on the local currency.
The bank, in a notice to commercial lenders, said the dollar auction would be both for spot and forward settlements and would be settled within the next 60 days.
Africa&#8217;s biggest economy shrank by 1.5 percent in 2016 in its first annual recession in 25 years, hit by a shortage of hard currency and lower revenue from its dominant oil sector as world crude prices remained under pressure.
The central bank has been intervening on the official market to try to narrow the spread between the official interbank and black markets. It has sold around $4 billion since February, but analysts doubt that this pace can be sustained.
Nigeria&#8217;s foreign exchange reserves had dropped 0.87 percent to $30.49 billion by May 25 from a month ago.
The local currency was quoted at 380.33 per dollar at the investor window on Tuesday, according to the market regulator FMDQ OTC Securities Exchange.
It was quoted at 382 a dollar on the black market, while commercial lenders quoted the local currency at 305.85 per dollar on the interbank market.
(Reporting by Oludare Mayowa, editing by David Evans)
&nbsp;

Nigeria’s central bank to sell $100 mln at forward, spot forex auction

By Stanley Carvalho and Chijioke Ohuocha
The Nigerian arm of Abu Dhabi telecom group Etisalat is yet to agree a deal on restructuring a $1.2 billion loan with local banks after it missed a payment, a company source told Reuters.
Etisalat Nigeria told Reuters last month that it was in talks with lenders to restructure the loan.
The source, who is not authorised to speak to media, said that Etisalat and the group of 13 Nigerian lenders were yet to agree on a debt restructuring proposal.
The source was speaking on the sidelines of Etisalat&#8217;s annual general meeting in Abu Dhabi on Sunday, where Chief Executive Saleh Al Abdooli declined to comment on the debt talks when asked by Reuters.
Etisalat did not respond to a request for comment.
Nigerian regulators agreed with local banks in March to pursue a default deal rather than a receivership for Etisalat Nigeria so as not to deter investors and to avoid a wider debt crisis.
Sources have said that Etisalat would consider selling its stake in the Nigerian entity after the debt deal is agreed.
(Editing by Susan Fenton)

lenders

South African banking index falls over 4% after SARB advises against dividends

Unpacking CBN Q1 2018 credit conditions survey report

Malawi sees IMF loan approval as signal of donor confidence

Etisalat Nigeria loan restructuring talks fail as lenders step in

South African insurer MMI in lending, sales deal with African Bank

Nigeria’s central bank to sell $100 mln at forward, spot forex auction

Etisalat Nigeria yet to agree debt deal with lenders: source

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lenders

South African banking index falls over 4% after SARB advises against dividends

Unpacking CBN Q1 2018 credit conditions survey report

Malawi sees IMF loan approval as signal of donor confidence

Etisalat Nigeria loan restructuring talks fail as lenders step in

South African insurer MMI in lending, sales deal with African Bank

Nigeria’s central bank to sell $100 mln at forward, spot forex auction

Etisalat Nigeria yet to agree debt deal with lenders: source

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