News
Tanzania to clinch $700m Eurobond loan
Dar es Salaam: On getting good ratings, the country will lure private portfolio investment from aboard. Photo: Leonard Magomba
Posted Sunday, January 3 2010 at 13:29
BoT, which is the bond custodian and facilitator on behalf of the government, now needs only a go-ahead from the Ministry of Finance and Economic Affairs to pave the way for the rating.
Patience
Finance Minister Mustafa Mkulo confirmed from China last week that the bond issue is on track, adding that he did not want to comment much until the bond matures.
He said all precautions have been taken to make it a success.
An economist with the Confederation of Tanzania Industries, Hussein Kamote, said sovereign bonds should be handled carefully to avoid speculation.
“Unlike foreign direct investments that create economic growth, private portfolio investments follow growth,” he said.
London is one of the centres of the Eurobond market, but Eurobonds can be traded throughout the world.
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