The interest rates for Eurobond maturing on April 15, 2024, for tenor 10 years recorded an increase of 16 per cent to 50.6pc owing to the rising concerns over the deterioration in the country’s external liquidity position and financing conditions since early 2022, according to a report by Mettis Global.
Meanwhile, the interest rate on 10 years Eurobonds maturing on September 30, 2025, climbed by 9pc to 35.6pc, the report added, saying that the dismal outlook of Pakistan’s economy portrayed by the renowned rating agencies on the back of rising political and economic uncertainties is the main reason behind the spike in Eurobond yields.
The report while quoting experts and analysts said that the continued slump in PKR and increasing political uncertainty could further lower the ratings Fitch Ratings. Experts have raised alarm over the default level yields which they said indicated that investors’ confidence is low even after IMF’s staff level agreement.
