Temitope
Temitope Akinola
MTN Group has suspended the early repayment of abut $500 million debt held in Nigeria as a reuslt of lack of hard currency available in the country.
According to Nik Kershaw, MTN head of investor relations, the company said it had looked to do the early resettlement but it's not able to currently. He said there is a limited availability of hard currency in Nigeria. Though the bank is talks with Nigeria's Central Bank about the early repyment of borrowings to reduce exposure to the naira, which has weakened against the U.S. dollar this year.
Kershaw said the company sees the Naira further deteroriating and that declines in emerging market currencies against the dollar, including the South African rand, will negatively affect the business.
He said the cost of importing handsets into South Africa could rise, for example, costing the consumer more. He noted that the rand tumbled to a record low on Monday on concern plunging global commodity prices will worsen the country's economic outlook. The currency traded 1.7% weaker at 13.1952 againt the dollar as of 11:56 a.m. yesterday on Monday, in Johannesburg.
MG Africa
According to Nik Kershaw, MTN head of investor relations, the company said it had looked to do the early resettlement but it's not able to currently. He said there is a limited availability of hard currency in Nigeria. Though the bank is talks with Nigeria's Central Bank about the early repyment of borrowings to reduce exposure to the naira, which has weakened against the U.S. dollar this year.
Kershaw said the company sees the Naira further deteroriating and that declines in emerging market currencies against the dollar, including the South African rand, will negatively affect the business.
He said the cost of importing handsets into South Africa could rise, for example, costing the consumer more. He noted that the rand tumbled to a record low on Monday on concern plunging global commodity prices will worsen the country's economic outlook. The currency traded 1.7% weaker at 13.1952 againt the dollar as of 11:56 a.m. yesterday on Monday, in Johannesburg.
MG Africa
