The OMFIF Podcast

Africa: refinancing risks and debt distress

Gregory Smith, emerging markets fund manager at M&G Investments, speaks to Burhan Khadbai, head of content at OMFIF’s Sovereign Debt Institute, about the refinancing risks that African sovereigns are facing with a wall of bonds set to mature over the next few years.

Smith talks about where the risks are most concentrated and the difficulty many African sovereigns with low credit ratings will face in accessing the markets. He also talks about the debt restructuring talks in Ghana and Zambia and the role of debt-for-nature swaps as a way of reducing high debt burdens and boosting investment in environmental conservation.

Recorded on 17/03/23

UK budget: the hardest debt decisions await

With strains on the public purse and the need to keep the UK’s risk premium down after September 2022’s reckless mini-budget, Chancellor of the Exchequer Jeremy Hunt had limited room for largesse in his 15 March budget.

There were some welcome pro-growth measures to help the supply-side of the economy. But while he patched a fiscal hole, the borrowing outlook looks much tougher – meaning the hardest debt decisions await whoever’s in power after 2024. Neil Williams, chief economist and Taylor Pearce, senior economist, discuss what’s in store for the UK.

See also: UK budget patches a hole but borrowing outlook much tougher - OMFIF.

Cybersecurity and cloud migration

As our reliance on digital infrastructure grows, the dangers posed by more frequent and sophisticated cyberattacks grow too. Nataraj Nagaratnam, chief technology officer at IBM, joined Lewis McLellan, editor of OMFIF’s Digital Monetary Institute, to discuss the growing risks to our financial ecosystem and the tools that cloud providers can offer to help mitigate them. They also explored how systems can be designed around customer preferences while still offering the highest standard of security.

Climate change risks for financial stability

Pedro Duarte Neves, adviser for the board of directors of Banco de Portugal, joins Katerina Atkins, programme coordinator at OMFIF’s Sustainable Policy Institute, to discuss the critical topic of dealing with climate risks for financial stability. They share insights into the complexities surrounding the shift towards a low-carbon economy and the role played by central banks and policy-makers in tackling climate risks both in Europe and globally. They examine climate scenario analysis and stress testing tools and how to effectively communicate the results of climate risk assessments.

If you are interested in learning more about the topic and meeting key policy-makers, regulators, public and private sector investors and ESG experts, join us for the Sustainable Policy Institute symposium on 22-23 March in London. Register here: https://www.omfif.org/spisymposium2023/

The views and opinions expressed the ones of the interviewee and do not necessarily reflect those of Banco de Portugal or the Eurosystem.

Insuring impactful fund disbursements for efficient public good

Public finance management systems are a means of delivering development outcomes through a governance system, so assuring that fund disbursements are impactful is crucial. The inability of current systems to accurately measure and track key indicators creates operational challenges and overcoming them is critical in facilitating effectual public good. Representatives from USAID and EY join OMFIF to discuss some of the challenges unfolding in aid projects and how they can be resolved.

Why you shouldn’t miss the Sustainable Policy Institute symposium

 

Join OMFIF's Emma McGarthy and Katerina Atkins as they give a sneak peek into what to expect from this year's highly anticipated Sustainable Policy Institute symposium. They delve into the main topics on the agenda and look forward to the keynote speakers who will be sharing their expertise.

 

The SPI symposium will take place on 22-23 March in London and will examine the role of monetary policy, climate risk, regulation and disclosure. It will address practical challenges in driving sustainable financial markets to achieve net zero. The event will convene a global network of key policy-makers, regulators, public and private sector investors and ESG experts.

 

And the best part? You can still register to participate! Don't miss out – find more information and register here: https://www.omfif.org/spisymposium2023/

How central banks can drive gender equality

Margarita Delgado, deputy governor of Banco de España, speaks to Emma McGarthy, head of OMFIF’s Sustainable Policy Institute, on the role of central banks in efforts to bring women into leadership positions in the financial sector. They discuss the policies and frameworks required, the initiatives and strategies implemented by Banca de España to close leadership gaps and how improving diversity can drive better returns for investors. 

How Austria is breaking ground with green T-Bills

Markus Stix, managing director at the Austrian Treasury, speaks to Burhan Khadbai, head of content at OMFIF’s Sovereign Debt Institute, about the launch of the world’s first short-term sovereign green bond programme.

Stix talks about the reception of Austria’s first rollover of green Treasury bills, plans to issue green commercial paper and how the Treasury has shared its experiences with other sovereign debt management offices looking to follow in Austria’s footsteps.

QT, asset pricing and financial markets: central banks’ ‘other’ monetary policy tool

Though the battle to rein in inflation continues in most major economies, monetary authorities are now beginning the much more uncertain process of quantitative tightening. As central banks drain liquidity from the financial system and unwind their balance sheets, what impact will this have on markets and government financing? Which markets will be particularly sensitive to tightening? What are the risks that may hinder policy-makers’ ability to implement QT as planned? Bill Papadakis, investment strategist on Lombard Odier’s macro team, speaks with OMFIF Chief Economist Neil Williams and Economist Taylor Pearce on the prospects for QT.

The Bank of Japan’s yield target tensions

Even as its liquidity provision passes its 25th year, the Bank of Japan looks unlikely to tighten monetary policy in step with other central banks until deflation is beaten and the Ministry of Finance can end its reliance on ultra-low yields to control government debt costs. Neither of these looks likely to happen in the new governor’s five-year term starting on 9 April, and possibly beyond it.

Neil Williams, chief economist, and Taylor Pearce, economist at OMFIF, discuss the tensions around the BoJ’s yield target and the impact that even more quantitative easing may have. With central bank independence looking blurred and fiscal costs a growing consideration in monetary decisions, is Japan is the best test case we have? https://www.omfif.org/2023/02/japan-25-years-of-adding-liquidity-and-counting/