Latest news with #debtmanagement
Zawya
8 hours ago
- Business
- Zawya
Afreximbank downgrade: Diaspora Nigerian warns against unproductive borrowing, urges economic diplomacy
THE recent downgrade of the African Export-Import Bank (Afreximbank) by global credit rating agency Fitch Ratings has raised alarms across financial and policy circles, prompting a strong caution from Collins Nweke, a diaspora Nigerian and former Green Councillor in Belgium. Fitch Ratings downgraded Afreximbank to a BBB rating—just one notch above junk status. This move, while subtle in technical terms, carries significant implications for Africa's financial credibility and access to capital markets. Nweke, in a statement made available to Nigerian Tribune, urged the Federal Government of Nigeria and other African governments to resist the temptation to borrow indiscriminately, particularly without directing funds toward productive, growth-driven investments. 'Fiscal discipline and debt sustainability must be seen as strategic national assets,' Nweke warned. 'The temptation to borrow without corresponding investments in production must be curbed through stronger legislative oversight and public transparency.' Nweke stressed that economic diversification must be more than a buzzword. 'It must be a survival strategy,' he said, highlighting the dangers of overreliance on commodity exports and politically motivated infrastructure loans, which expose countries to global market volatility. A Blow to Africa's Development Bank Afreximbank serves as Africa's financial backbone for trade and infrastructure development, often stepping in when global lenders hesitate. According to Nweke, its downgraded status could increase the cost of borrowing and reduce access to vital development financing, especially for small businesses and startups. 'Many of the bank's loans are to sovereign borrowers already burdened by high debt. The downgrade casts doubt on the bank's transparency and credit quality,' he explained. 'The consequences are Higher interest rates, reduced investor confidence, and delayed infrastructure projects—directly impacting jobs and livelihoods.' He described the downgrade not just in financial terms but as a warning signal for Africa's broader economic diplomacy. 'We need to realise that global rating agencies and financial markets are not external judges but platforms where Africa must participate and perform,' he said. Call for Economic Diplomacy Nweke called for Africa to embrace economic diplomacy as a core foreign policy tool, asserting that the continent must 'show up and outperform' on global financial platforms. 'It is not enough to protest unfavourable ratings; we must counter them with performance and transparency.' To regain investor trust and elevate its credit profile, Nweke recommended three urgent reforms for Afreximbank: The bank must adopt globally recognised disclosure and risk reporting standards to address the perception of opacity; Afreximbank must reduce its exposure to overleveraged governments and expand lending to well-structured private sector entities; African governments and private stakeholders must step up recapitalisation efforts to strengthen the bank's financial stability. Beyond Afreximbank, the downgrade serves as a wake-up call for broader reforms across the continent. Nweke argued that Africa needs a resilient regional financial system built on transparency, capital strength, and governance. Several African countries have already taken bold recapitalisation steps. Notably, Nigeria's Central Bank launched a phased recapitalisation plan in March 2024, requiring commercial banks to meet new minimum capital thresholds by March 2026. Major players like First Bank and Access Bank are actively raising funds through rights issues and private placements to meet these requirements. Such initiatives, Nweke said, help bring African banks closer to global Basel III standards, improving shock absorption, credit growth, and investor confidence. 'Stronger capital positions make our institutions more competitive and more attractive to global markets.' Nweke concluded by urging African leaders not to interpret the downgrade as a condemnation but as a cautionary signal. 'Africa can't survive on goodwill or slogans. We must build systems that work, institutions that deliver, and economies that grow.' Calling this 'Africa's decisive moment,' he urged policymakers to recommit to reforms, transparency, and performance. 'Let us use this moment not as a setback but as an opportunity to earn credibility and build financial systems our citizens can trust.'
CNA
20 hours ago
- Business
- CNA
Japan to conduct appropriate debt management policies, finance minister says
TOKYO :Japanese Finance Minister Katsunobu Kato said on Tuesday that the government will conduct appropriate debt management policies while communicating closely with market participants. "It's important for the government to make efforts to ensure a variety of investors buy and own government bonds, at a time when the Bank of Japan tapers its bond purchases," Kato said, speaking to reporters in a regular news conference. Kato said measures to promote domestic ownership of Japanese government bonds (JGB) include introducing a new type of floating-rate note linked to short-term interest rates and allowing unlisted companies to buy bonds designed for individual investors. The government will continue to work on appropriate policies "so that market confidence in Japanese government debt would not be lost," he said. Reuters reported on Monday that the government is considering buying back some super-long bonds it issued at low interest rates, on top of an expected government plan to trim issuance of super-long bonds in the wake of sharp rises in yields.
Reuters
20 hours ago
- Business
- Reuters
Japan to conduct appropriate debt management policies, finance minister says
TOKYO, June 10 (Reuters) - Japanese Finance Minister Katsunobu Kato said on Tuesday that the government will conduct appropriate debt management policies while communicating closely with market participants. "It's important for the government to make efforts to ensure a variety of investors buy and own government bonds, at a time when the Bank of Japan tapers its bond purchases," Kato said, speaking to reporters in a regular news conference. Kato said measures to promote domestic ownership of Japanese government bonds (JGB) include introducing a new type of floating-rate note linked to short-term interest rates and allowing unlisted companies to buy bonds designed for individual investors. The government will continue to work on appropriate policies "so that market confidence in Japanese government debt would not be lost," he said. Reuters reported on Monday that the government is considering buying back some super-long bonds it issued at low interest rates, on top of an expected government plan to trim issuance of super-long bonds in the wake of sharp rises in yields.
CBS News
a day ago
- Business
- CBS News
Credit card debt relief dos and don'ts to know right now
With the right approach, credit card users can start erasing what they owe as early as this card debt balances may have declined in the first quarter of 2025, but they're still a major source of financial concern for millions of Americans. At a total of $1.18 trillion in the first quarter of 2025, balances declined from where they were at the end of 2024, but they're still up 6% from where they were a year earlier. And with an average credit card interest rate of over 21% now and compounding interest making it difficult to pay down even seemingly manageable balances, it's easy to see why this is such a hardship for many Americans in today's economy. Fortunately, there are multiple credit card debt relief options and programs available that are worth exploring right now. Whether you're considering credit card debt forgiveness, a debt management program, or something else entirely, however, there are some important steps to take during the process, especially in today's economic landscape. And there are some potentially costly missteps worth avoiding, as well. To improve your chances of success, it helps to know some important credit card debt relief dos and don'ts in today's economy. Below, we'll detail four of them. Check your credit card debt forgiveness eligibility here. Credit card debt relief dos and don'ts to know right now Here are four important dos and don'ts borrowers should know about credit card debt relief right now: Do: Be proactive in reducing your debt No matter which credit card debt relief option you feel is most applicable to you, it's important to be proactive. With credit card interest rates just under a record high and interest compounding daily for many borrowers, being aggressive is critical now and could be the difference between regaining your financial freedom and being mired in high-rate debt for the long term. Your current credit card debt balance was built up over time and it will likely take even longer to cut it back down, so start the process sooner rather than later. Explore your credit card debt relief options online today. Don't: Wait for rate cuts to impact what you owe Waiting for interest rates to be cut by the Federal Reserve, to then reduce your already high credit card interest rates, isn't beneficial now. For starters, no one knows for sure when the central bank will cut rates (possibly in July, but that could change). Additionally, that cut is likely to be by just 25 basis points, which will have a negligible impact on your credit card rates (if at all). And, in the interim, your debt will just compound each day that it's not dealt with. So don't wait for a one-size-fits-all solution courtesy of Fed rate cuts, and instead look to be aggressive in cutting down what you owe now. Do: Understand the impact of debt relief solutions All debt relief solutions aren't created equally. Some will require more work than others. And, some will have a bigger impact on your credit score than others, especially those in which you'll stop making payments to your credit card company and then shift those payments to a debt relief service that will make them for you. The final result will still be the same – freedom from credit card debt and improved credit – but the methods of getting there will vary. So take the time to understand the impact (or low impact), as each potential solution has to better determine which applies to your current situation. Don't: Assume automatic eligibility Qualifying for credit card debt forgiveness isn't the same thing as qualifying for a debt management program and it's not the same as having the credentials for credit card debt consolidation, even if all three are similar. Each option comes with different criteria, some of which may be more flexible and appropriate for your situation than others. So don't just assume automatic eligibility. Instead, research what will be needed for each. This will not only allow you to better align with the right solution for your needs but it will also allow you to focus on gathering documentation that you'll inevitably be asked for, speeding up the process as a result. The bottom line For many borrowers, this June is a smart time to start the credit card debt relief process. With rates here near a record high, the reality of compounding interest making it difficult to pay down what you've borrowed and the likelihood of Fed rate cuts small (and minimally impactful on what you already owe), it makes sense to take action now. With a strategic approach incorporating the four above dos and don'ts, you can start cutting your balances and, more importantly, regain your financial health once again.
Yahoo
2 days ago
- Business
- Yahoo
'Lock Arms and Write a Pledge in Blood': Dave Ramsey Scolds Broke Couple for Blowing $30K on Solar Panels — 'You're So Freaking Chaotic'
If you've ever made one well-meaning money decision that spiraled into five bad ones, Jessica from Dallas knows exactly how you feel. She and her husband bought a house three years ago, then decided to tack on $30,000 worth of solar panels. "We do not make but maybe $3,100 a month after child support," Jessica told Dave Ramsey during a call to "The Ramsey Show." Desperate for advice she explained, "We do not know which way is up. We do not know how to make ends meet." Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Maximize saving for your retirement and cut down on taxes: . Ramsey, never one to tiptoe around financial disaster, didn't hold back. "You guys have to lock arms and write down a pledge in blood that says, 'I'm going to quit buying crap I can't afford,'" he said. "Solar panels, renovations, anything ever — unless I can pay cash for it, I'm never buying it again." Jessica agreed. "You're right," she said. They owe $30,000 on the solar panels, $15,000 on credit cards, and $197,000 on the house — but with an estimated home value of $300,000, they're sitting on $100,000 in equity. It's a lifeline. But they're sinking fast, renting a third car, stretched thin by home costs, renovations, and trying to make $3,100 last a month. Trending: Invest where it hurts — and help millions heal:. Ramsey gave it to them straight: "Give that car back today. I'm not kidding," he said. "That was not a joke." "Everything's just kind of been happening to y'all," he added. "We're going to turn this around. You're going to start happening to it." His plan? Budget ruthlessly. Sell the car. Cancel anything that isn't essential. Boost their income. And only if all of that fails — sell the house and hit reset. "If none of that works, just sell the house," Ramsey said. "It clears everything. You're 100% debt-free. Get you a little rental, you and your little three-year-old, and restart fresh." Jessica admitted the idea of selling had already crossed her mind. But Ramsey made clear that it's not the first move — it's the fallback. The real fix starts with discipline and a plan. He's enrolling them in Financial Peace University, giving them EveryDollar budgeting access, and sending Ken Coleman's book, "From Paycheck to Purpose," to help boost their earning potential. But that only works if they change their mindset. "You have absolutely no idea where what little money is coming in is going," he said. "You're so freaking chaotic and out of control."The real takeaway? Getting out of debt isn't just about math — it's about control. Clarity. Willpower. "Swallow your worst-case scenario," Ramsey told her. "Emotionally accept it. Once you've done that, everything else is up from there." Their story isn't all that rare. According to Clarify Capital's recent study of 1,000 Americans, 38% say overspending has cost them an average of $63,000 in lost net worth. One in eight admit to blowing $5,000 or more in a single day, while 1 in 10 Gen Zers confess to recurring $800 splurges. And for many, the consequences linger — more than half say financial regret triggers anxiety, and a third admit they feel hopeless when thinking about money. When everything feels like it's crashing down — from solar panels to credit card bills — the way out isn't more money. It's control, clarity, and the courage to face the worst... and then fight your way back up. Read Next: The average American couple has saved this much money for retirement —? Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'Lock Arms and Write a Pledge in Blood': Dave Ramsey Scolds Broke Couple for Blowing $30K on Solar Panels — 'You're So Freaking Chaotic' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
