Experts said the benchmark five-year credit default swap was still high at 17.44% compared to the range of 4-6% during the days of economic stability. PHOTO: FILEPakistan’s risk of default on international payments, measured by the credit default swap (CDS), sharply reduced to half in a single day to 17.44% on Thursday after the government reported that the IMF was set to confirm the revival of its $7 billion loan programme before weekend. LoI is a document that lists the conditions the government has agreed to fulfill under the IMF programme. The “macroeconomic stability is forthcoming with the IMF programme resuming before the end of August as all conditions have been met. Default riskTo recall, Pakistan’s benchmark five-year credit default swap (CDS) hit an all-time high of 34.86% in recent days.
Source: The Express Tribune August 12, 2022 18:50 UTC