The economic fallout from the Covid-19 crisis is likely to tip several of the world’s poorest countries into debt distress, forcing official creditors and private-sector lenders to accept a reduction or restructuring of loan repayments, the Paris Club group of creditor countries said on Tuesday, the Financial Times reported.
Rwanda’s central bank reduced its benchmark interest rate for the first time in about a year and lowered cash reserve requirements for banks to stimulate output amid the Covid-19 shock to the economy, Bloomberg News reported. The National Bank of Rwanda lowered the lending rate to 4.5% from 5%, according to an emailed statement. It was last cut in February 2019 by 50 basis points. Inflation could average 6% this year, slower than 8.2% in the second quarter, central bank Governor John Rwangombwa said in a phone interview after the rate decision.
RDB (Rwanda Development Board) this Wednesday commenced a three-day workshop in Kigali to train Rwanda’s insolvency practitioners, judges and other stakeholders including bankers and academics on the new insolvency law and matters around it, Taarifa reported. The insolvency law is part of commercial laws which the World Bank considers in the annual evaluation exercise for ranking Rwanda in the ease of Doing Business global index. The insolvency law is assessed together with its implementing institutions on how they facilitate doing business in the country.