Latest news with #borrowing
Zawya
3 days ago
- Business
- Zawya
Uganda says it will borrow $566mln, including from Afreximbank
KAMPALA - Uganda plans to borrow a total of 500 million euros ($568 million) from three lenders including Afreximbank to finance infrastructure development, Finance Minister Matia Kasaija said. Lawmakers on Thursday approved the government request to acquire the loans despite resistance from opposition lawmakers who have criticised the country's growing debt burden. At least 270 million euros will be borrowed from Cairo-based African Export-Import Bank (Afreximbank), while 230 million euros will be jointly lent by Ecobank Uganda and Development Bank of Southern Africa, Kasaija told parliament. He did not give a timeline for when the money will be borrowed. Uganda's total stock of public debt jumped 18% to $29.1 billion last year on the back of increased domestic borrowing, according to the finance ministry. The rising debt triggered a ratings downgrade last year. The government says the borrowings have been used to drive economic growth. ($1 = 0.8811 euros).
Reuters
3 days ago
- Business
- Reuters
Uganda says it will borrow 500 million euros, including from Afreximbank
KAMPALA, May 30 (Reuters) - Uganda plans to borrow a total of 500 million euros ($568 million) from three lenders including Afreximbank to finance infrastructure development, Finance Minister Matia Kasaija said. Lawmakers on Thursday approved the government request to acquire the loans despite resistance from opposition lawmakers who have criticised the country's growing debt burden. At least 270 million euros will be borrowed from Cairo-based African Export-Import Bank (Afreximbank) ( opens new tab, while 230 million euros will be jointly lent by Ecobank Uganda and Development Bank of Southern Africa, Kasaija told parliament. He did not give a timeline for when the money will be borrowed. Uganda's total stock of public debt jumped 18% to $29.1 billion last year on the back of increased domestic borrowing, according to the finance ministry. The rising debt triggered a ratings downgrade last year. The government says the borrowings have been used to drive economic growth. ($1 = 0.8811 euros)
Trade Arabia
3 days ago
- Business
- Trade Arabia
'OIL DEMAND STAYS STRONG' Aramco plans more borrowing to fund growth: CEO
Saudi Aramco is targeting more borrowing to finance growth and better leverage its balance sheet, Chief Executive Officer Amin Nasser said, as the world's biggest oil exporter raised $5 billion in bonds this week. more…
CBS News
3 days ago
- Business
- CBS News
HELOC rates are falling again. Here's what to consider now.
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. HELOC interest rates are declining again, new data released this week shows. Getty Images After some minor increases earlier in May, interest rates on home equity lines of credit (HELOCs) reversed course and declined again this week, according to new Bankrate data. Now, at an average rate of 8.14%, rates dropped by six basis points, allowing HELOCs to maintain their position as one of the cheapest ways to borrow money right now. They're less expensive than home equity loans, which remained flat this week at an average rate of 8.24% and materially cheaper than personal loans (over 12% currently) and credit cards (around 21%). And with the average home equity amount around $313,000 right now, there's likely plenty of money to utilize while still maintaining a healthy equity buffer in the home. Still, borrowing from your home equity isn't risk-free, and with a HELOC, which has a variable rate, some volatility should be priced in to avoid surprises. But with rates here low again, many would benefit from using this specific borrowing product. It just helps to know some timely considerations before securing the line of credit. Below, we'll detail what to consider right now. Start by seeing how low a HELOC rate you'd be eligible for here. What to consider with HELOC rates falling again Here are three items to consider with HELOC rates falling back toward 8% again: Rates here could rise or fall unexpectedly Earlier in 2025, it felt like HELOC rates would never stop declining. They hit an 18-month low. Then a two-year low and then another, new two-year low. But that drop stopped in recent weeks and rates here actually rose a bit since. And that's something that will impact borrowers even after the HELOC is secured, as variable rates will change monthly, perhaps in an unexpected way. So don't let a lower rate lull you into a false sense of complacency. Rates here could continue to fall … or they could rise again. Be prepared for either. That said, overall, HELOC rates are down by around two full percentage points since September 2024, so the larger trend is still a positive one for borrowers. Compare HELOC rates and offers here to see which is most affordable. Long-term affordability will need to be closely calculated Do you know how much you want to borrow with a HELOC? Because of these recent rate changes and because you'll need to make repayments no matter how dramatically the rate changes over time, it's important to calculate long-term affordability closely. For example, if you want to borrow with a $50,000 HELOC, don't just do the math tied to today's average rates. Calculate repayments against higher rates in the future and, potentially, lower ones as well. This will give you a better idea of long-term affordability, which is critical when your home is the funding source to avoid the risk of foreclosure. You could refinance into a home equity loan Want to take advantage of today's low HELOC rates but are nervous about your ability to make repayments should rates spike again? Then consider the HELOC now, and keep in mind that you could refinance it into a home equity loan (with a fixed interest rate) in the future. Just be sure to clarify with your HELOC lender before getting started, as eligibility criteria and requirements can vary from lender to lender. And understand that that may require you to forego a lower HELOC rate for a slightly higher home equity loan rate. Still, at that point, the exchange may be worthwhile if paying a changing HELOC rate each month becomes too stressful (and expensive). The bottom line With HELOC interest rates on the decline again, homeowners contemplating the use of this product may be ready to get started. By keeping these three timely considerations in mind, however, they'll be able to make a more informed decision, positioning themselves for home equity borrowing success both in today's rate climate and, theoretically, over the extended repayment period of a decade or more.
Trade Arabia
3 days ago
- Business
- Trade Arabia
Aramco plans more borrowing to fund growth: CEO
Saudi Aramco is targeting more borrowing to finance growth and better leverage its balance sheet, Chief Executive Officer Amin Nasser said, as the world's biggest oil exporter raised $5 billion in bonds this week. The debt sale, along with $9 billion raised last year, is helping temper the impact of oil's slide on the company's finances. The Saudi state oil producer needs funds to plug a gap as declining free cash flow amid weaker crude prices fails to cover a massive dividend, even after the payout was reduced, a Bloomberg report said. The move boosted net debt to the highest in almost three years and has driven up leverage ratios, but they still remain way below some of the other major oil companies. 'Our gearing today is around 5%, still one of the lowest' in the industry, Nasser said in a Bloomberg TV interview. 'We will continue to tap into that additional bond markets in the future.' The company sold dollar-denominated notes in three tranches on Tuesday, taking its issuances over the past year to $14 billion and adding to a spree of borrowings by the Saudi government and its affiliated companies. The kingdom's debt levels jumped the most ever last quarter as it borrowed to help cover an expected budget shortfall resulting from an ambitious economic diversification plan and falling oil prices. Aramco's gearing ratio — a measure of its indebtedness — rose to 5.3% at the end of March from 4.5% at the end of last year. That compares with an average of 14% for international oil companies last year, Aramco said earlier this month. Shell's gearing is 18.7% and TotalEnergies' 14.3%. Weaker oil resulted in Aramco's first-quarter net income sliding 4.6% from a year earlier. Free cash flow — the money left over from operations after accounting for investments and expenses — declined 16% to $19.2 billion, and wasn't enough to cover a reduced $21.36 billion dividend. Some of the price pressures have deepened with crude's nearly 12% decline since early April. Riyadh has led a push by the biggest OPEC+ producers to unwind supply cuts at a faster-than-scheduled pace, at a time when there are concerns over demand amid US President Donald Trump's global tariff policies. Oil jumped, trading above $66 a barrel on Thursday, after a US court deemed most of Trump's tariffs illegal and blocked them. The administration appealed, signaling a coming legal wrangle. Despite the uncertainty that's whipsawed markets this year, Nasser reiterated his bullish outlook. Demand in the first quarter of this year rose by 1.7 million barrels a day and continues to expand, he said. Aramco, which has one of the world's lowest oil extraction costs of about $3 a barrel, can sustain a period of weak prices, he said. 'The fundamentals are still strong,' Nasser said of the markets. 'The tariffs had some impact on the global economy and sentiment, but, still the fundamentals are strong and we think that will continue for the foreseeable future.'
