Hullabaloo about Eurobond is bad politics gone wrong

[RV Pundit]

I cannot see the scandal here. The Eurobond was intended to help REDUCE domestic borrowing, hopefully force banks to lend to private sector and individuals rather than treasury. This worked out with some measured success before the dollar strengthening derailed that. This was clearly explained long time ago.

Raila is making a laughable case here. GOK  will borrowed 250B locally this year. In 2013/14 they borrowed part of it locally and part of it from Eruobond. For GOK it the same money.EuroBONDS was not ring-fenced to any project..just like TreasuryBONDS are not. Therefore asking Rotich where the money went is ridicolous. If the money came to Consolidated Account..and it did...then it was allocated to the budget lines of every ministry.

If Raila & company contend we still borrowed 140B domestically .....shows us who lend the gok....it easy to clean this information from CBK tbills/tbonds data.... whatever loan is bought by treasury is published by CBk.

[Kim Jong-Un's Pajama Pants]

So, that means he's not accountable right?
What a country!!

Maybe accountability is for kabila ndogo ndogo.  Giriama, Pokomo, Borana...

[patel]

I don't see any scandal here.
http://www.nation.co.ke/news/Treasury-accounts-for-Eurobond-revenue/-/1056/2983308/-/8ow2rx/-/index.html

Is this an informed position or just another case of blind tribal  loyalty?  Rotich collects money bank it in some off shore account then spend the money straight from those offshore accounts without parliament approval then Finance some phantom projects ......and we are supposed to dismiss this as hullabaloo! !

[Kadudu]

The problem with Pundit is he sides with his tribesman despite all indications showing that the whole Eurobond saga stinks.
Just read what Jaindi Kisero has to say about it and do not even mention David Ndii. To date no economic expert has come out to defend Rotich.

http://www.nation.co.ke/oped/Opinion/Explanations-on-the-Eurobond-cash-are-making-matter-even-opaque/-/440808/2989050/-/1ckpja/-/index.html

Is this an informed position or just another case of blind tribal  loyalty?  Rotich collects money bank it in some off shore account then spend the money straight from those offshore accounts without parliament approval then Finance some phantom projects ......and we are supposed to dismiss this as hullabaloo! !

[RV Pundit]

I only dance to facts. So far there is NO SCANDAL. When you have evidence that money was wired to someone accounts, then I'll be the first to drop Rotich under the bus, despite him being my tribesman.

The problem with Pundit is he sides with his tribesman despite all indications showing that the whole Eurobond saga stinks.
Just read what Jaindi Kisero has to say about it and do not even mention David Ndii. To date no economic expert has come out to defend Rotich.

http://www.nation.co.ke/oped/Opinion/Explanations-on-the-Eurobond-cash-are-making-matter-even-opaque/-/440808/2989050/-/1ckpja/-/index.html

Is this an informed position or just another case of blind tribal  loyalty?  Rotich collects money bank it in some off shore account then spend the money straight from those offshore accounts without parliament approval then Finance some phantom projects ......and we are supposed to dismiss this as hullabaloo! !

[Kadudu]

Even in Goldenberg and Anglo Leasing sagas, Kenyans never got to see any evidence of money wired into people's accounts. The country still lost billions. Your view here is irrelevant to this matter.
A small question, how does a country like Kenya which got a financial injection of over 150 billion Ksh. which had not been accomodated for in the budget run into a "financial crunch" during the same period that extra cash was being absorbed into the economy?

I only dance to facts. So far there is NO SCANDAL. When you have evidence that money was wired to someone accounts, then I'll be the first to drop Rotich under the bus, despite him being my tribesman.

[RV Pundit]

Your views are also irrelevant. The gov was always going to borrow 250B. Either domestically or internationally. The budget is made by MPs. It had projected taxes that KRA would collect and deficit to be borrowed...it doesn't matter if borrowing is from treasury bonds or eurobond..the money had to be borrowed. Rotich & Adhiambo job is to allocate the money to each budget line. Not to be accountable for every cent..that is the job of every ministry or whoever has the authority to spend gov money.

There was no "financial crunch"....just a gov prudently deciding they couldn't borrow when US-KSH exchange rate had gone to the dogs. The so called crisis ended before it started.

So far there is NO evidence of any scandal.

Even in Goldenberg and Anglo Leasing sagas, Kenyans never got to see any evidence of money wired into people's accounts. The country still lost billions. Your view here is irrelevant to this matter.
A small question, how does a country like Kenya which got a financial injection of over 150 billion Ksh. which had not been accomodated for in the budget run into a "financial crunch" during the same period that extra cash was being absorbed into the economy?

[Georgesoros]

Just like there a hullabaloo about Waiguru not being part of stealing and she was going to give evidence - according to EACC, and then they turn around and raid her house.

[MOON Ki]

There was no "financial crunch"....just a gov prudently deciding they couldn't borrow when US-KSH exchange rate had gone to the dogs. The so called crisis ended before it started.

Really?   I seem to recall that it ended when the government engaged in some large borrowing from commercial banks: $750 million syndicated loan in Oct 2015.    Hardly what I would describe as "prudently deciding they couldn't borrow".   

At very same time that the government was negotiating with banks to help end the non-existent cash crunch, people were already asking questions:

http://www.theeastafrican.co.ke/OpEd/comment/Ten-facts-about-the-Eurobond/-/434750/2937338/-/db5ls8z/-/index.html

Anyways ... if you ignore all that mess, the borrowing ("prudently decided against" but still done), and the 20+% interest rates that we saw, then, yes, the crisis certainly "ended before it started".    And we should celebrate that ... but also remember that the last such syndicated loan got repaid only by borrowing more money (Eurobond).   

[RV Pundit]

First 38.5B is not even enough to meet monthly debt repayment...so that is very little change.

Secondly gok refused to borrow at 20% plus interest rate, and decided to approach banks for cheaper loan; That is prudent. The crisis was short lived.

Gov have budgetted to borrow about 210-250B......domestically...so unless that figure has been breached...there is no crisis.

There was no "financial crunch"....just a gov prudently deciding they couldn't borrow when US-KSH exchange rate had gone to the dogs. The so called crisis ended before it started.

Really?   I seem to recall that it ended when the government engaged in some large borrowing from commercial banks: $750 million syndicated loan in Oct 2015.    Hardly what I would describe as "prudently deciding they couldn't borrow".   

At very same time that the government was negotiating with banks to help end the non-existent cash crunch, people were already asking questions:

http://www.theeastafrican.co.ke/OpEd/comment/Ten-facts-about-the-Eurobond/-/434750/2937338/-/db5ls8z/-/index.html

Anyways ... if you ignore all that mess, the borrowing ("prudently decided against" but still done), and the 20+% interest rates that we saw, then, yes, the crisis certainly "ended before it started".    And we should celebrate that ... but also remember that the last such syndicated loan got repaid only by borrowing more money (Eurobond).   

[MOON Ki]

First 38.5B is not even enough to meet monthly debt repayment...so that is very little change.

The point was the whereabouts of the money.  As for being little change, it is almost half of what GoK took in that syndicated loan.

Secondly gok refused to borrow at 20% plus interest rate, and decided to approach banks for cheaper loan; That is prudent.

Your usual approach to facts is to simply dig in your heels and insist on your version of reality.  It is good to see you, for once, at least revise your claims once the facts have been submitted---here, a change from: 

just a gov prudently deciding they couldn't borrow when US-KSH exchange rate had gone to the dogs.

[RV Pundit]

So we know have moved from missing 140B to missing 38B. That is some progress. Gov borrowed the syndicated loan at far lower interest rate than the prevailing market rate then...and that is prudent managament of public finances.

First 38.5B is not even enough to meet monthly debt repayment...so that is very little change.

The point was the whereabouts of the money.  As for being little change, it is almost half of what GoK took in that syndicated loan.

Secondly gok refused to borrow at 20% plus interest rate, and decided to approach banks for cheaper loan; That is prudent.

Your usual approach to facts is to simply dig in your heels and insist on your version of reality.  It is good to see you, for once, at least revise your claims once the facts have been submitted---here, a change from: 

just a gov prudently deciding they couldn't borrow when US-KSH exchange rate had gone to the dogs.

[MOON Ki]

So we know have moved from missing 140B to missing 38B. That is some progress.

If you want to go that way .... the 38b figure came earlier; so things are getting worse.

Gov borrowed the syndicated loan at far lower interest rate than the prevailing market rate then...and that is prudent managament of public finances.

Yes of course.    Borrowing prudently after prudently deciding not to borrow.    I love Pundit Logic.

just a gov prudently deciding they couldn't borrow when US-KSH exchange rate had gone to the dogs.

[RV Pundit]

Lets have some more meat on the bare eurobonds. As for gov deciding not to borrow..I meant using the normal tbond/tbills...they instead decided to borrow from local banks at low interest rate. You have to understand that treasury just like you and me have to deal with exogenous risks that they cannot control..one of them is USD playing havoc once in a while on the global economy.

So we know have moved from missing 140B to missing 38B. That is some progress.

If you want to go that way .... the 38b figure came earlier; so things are getting worse.

Gov borrowed the syndicated loan at far lower interest rate than the prevailing market rate then...and that is prudent managament of public finances.

Yes of course.    Borrowing prudently after prudently deciding not to borrow.    I love Pundit Logic.

just a gov prudently deciding they couldn't borrow when US-KSH exchange rate had gone to the dogs.

[patel]

[MOON Ki]

Ndii, once again:

http://www.nation.co.ke/oped/Opinion/-lies-about-Eurobond/-/440808/3002226/-/lrjlexz/-/index.html

I have yet to read of anyone going through his "accounting" and saying "he's wrong here and there".    Instead, the attention has been shifted to this-and-that about Raila.   Deliberately?

[Kim Jong-Un's Pajama Pants]

Ndii, once again:

http://www.nation.co.ke/oped/Opinion/-lies-about-Eurobond/-/440808/3002226/-/lrjlexz/-/index.html

I have yet to read of anyone going through his "accounting" and saying "he's wrong here and there".    Instead, the attention has been shifted to this-and-that about Raila.   Deliberately?

The impression I have is that each new attempt to explain Eurobond by GoK is leading to more troubling questions.  That they were either cavalier with the money or worse; they are proferring the former alternative.

If there is an honest to God mistake, they are not forthcoming with the truth.  That can only mean the truth is unpalatable; there is no mistake; they'd rather deal with any fallout from the confusion than say what is becoming an inevitable conclusion.

They are better off ignoring the questions and trying to weather the storm.  The plan being that it remains a purely Kenyan scandal, subject only to kienyeji solutions.

[Kim Jong-Un's Pajama Pants]

Treasury cabinet, Henry Rotich would appear to have a new suggestion.  Scratch the infrastructure spending and line ministries explanation.  They used it to pay off a debt of Ksh. 120 billion left by Kibaki.

Government used Euro bond money to clear Sh 120 billion debt left by former  president Mwai Kibaki's administration; CS @HKRotich  has said.

Invalid Tweet ID

[Kim Jong-Un's Pajama Pants]

Treasury cabinet, Henry Rotich would appear to have a new suggestion.  Scratch the infrastructure spending and line ministries explanation.  They used it to pay off a debt of Ksh. 120 billion left by Kibaki.

Government used Euro bond money to clear Sh 120 billion debt left by former  president Mwai Kibaki's administration; CS @HKRotich  has said.

Invalid Tweet ID

Fake Treasury twitter account.  My bad.

[Georgesoros]

i knew it all along. why not say so?
the level of indebtedness won't be known until 2030.