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Old Mutual's spat with Moyo drags on; Zimbabwe hikes key rate

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Old Mutual's spat with Moyo drags on; Zimbabwe hikes key rate

GULF COOPERATION COUNCIL

* The Saudi Arabian Monetary Authority has granted Orient Insurance PJSC initial approval to establish a branch in Saudi Arabia with a paid capital of 300 million United Arab Emirates dirhams. The Dubai-based insurer will start the process of setting up branches and get all final regulatory approvals to commence operations as soon as possible.

* The board of Bahrain-based Ahli United Bank BSC approved the share exchange ratio for its potential merger with Kuwait Finance House KSCP, in which shareholders would receive 1 KFH share for every 2.325581 shares they presently hold in AUB. The deal is now awaiting shareholder and regulatory approvals.

* First Investment Co. KSCP appointed Mohammmed Ghaith al-Ghaith al-Tayar as a senior executive, effective Sept. 15.

* Bwalet, the first mobile wallet product in Bahrain, now offers money transfers to bank accounts in the U.K., according to Arabian Business.

REST OF MIDDLE EAST AND NORTH AFRICA

* Bank Hapoalim BM said it has received regulatory approval for Dov Kotler's appointment as its new CEO, Reuters reported. Kotler succeeds Arik Pinto and will assume the role on Oct. 1.

* Israel's National Insurance Institute would likely hit bankruptcy in 2050 and would require a government bailout but an intervention should be carried out sooner, Globes reported, citing an analysis by the country's central bank. The institute's spending is projected to gradually rise in the next 40 years to up to 0.8% of GDP. Previous analyses suggested that National Insurance could go bankrupt by 2037.

* Iran's Supreme Council of Economic Coordination has extended the central bank's mandate to intervene and regulate the foreign exchange market for another year, the Financial Tribune wrote, citing Fars News Agency.

* Bank Sepah, the Iranian lender absorbing five military-affiliated banks in the country, would have 10% fewer branches following merger completion, the Financial Tribune reported, citing the lender's CEO, Mohammad Kazem Choqazardi.

* Misr Insurance Holding Co. aims to establish a life takaful unit by the middle of next year, Amwal Al Ghad reported, citing Basel El Hini, the Egypt-based firm's chairman and managing director. The firm will hold a controlling stake of nearly 75% in the envisaged unit.

* Two Egyptian state-controlled companies are expected to launch share offerings by 2019-end, Reuters reported, citing Sayed Abdel Fadeel, finance department head of the country's Financial Regulatory Authority. Late last year, the government pledged to sell minority stakes in state firms but delayed its plans due to emerging market turbulence.

* Wafa Assurance SA, a subsidiary of Morocco's Attijariwafa bank SA, is eyeing shares in the Gabonese insurance company Ogar and has begun discussions with its holding company Gabon Delta Synergie, Agence Ecofin wrote, citing newspaper La Lettre du Continent. Wafa is trying to meet the requirements of new regulation demanding that insurance companies have equity worth 5 billion CFA francs by 2021.

EAST AND WEST AFRICA

* Some listed firms trading on the Nairobi Securities Exchange could face delisting under new rules that would remove poorly performing companies, according to Daily Nation. At present, 63 companies are trading on the bourse, with six of them submitting their results late due to several reasons.

* African Development Bank has launched and priced a $2-billion, three-year global benchmark bond maturing Sept. 16, 2022.

* Listed insurance firms on the Nigerian bourse will need 142.13 billion naira to meet new minimum capital requirements imposed by the National Insurance Commission, according to The Punch. The regulator had increased the minimum paid-up share capital requirement for life insurance firms to 8 billion naira from 2 billion naira while that for general insurers was hiked to 10 billion naira from 3 billion naira.

* The World Bank approved the release of a $450 million loan to Tanzania under the lender's Second Productive Social Safety Net Project, which would focus on productive and financial inclusion, through support services such as savings groups, among others. This marks the first tranche of funds issued to the country after being suspended last year due to government policy concerns, Reuters noted.

CENTRAL AND SOUTHERN AFRICA

* Old Mutual Ltd. Chairman Trevor Manuel said the South African insurer's board will remain in office and that the firm's shareholders have no issues with the board's credibility and how the legal dispute with Peter Moyo, who is seeking reinstatement as CEO after the company dismissed him in June for conflict of interest, is being handled, Reuters reported. Old Mutual said it had sent a letter to Moyo's attorneys saying it would not seek further court intervention on his second letter of termination, but noted that it was not backing down from the dispute. The insurer added that Moyo is not permitted nor required to return to work in the interim as its second letter of termination to him remains valid.

* South African Finance Minister Tito Mboweni said the country will likely fail to meet its target of a 1.5% economic growth this year largely due to increasing headwinds, with the state facing calls to bail out government-controlled firms, Reuters wrote.

* A third former Credit Suisse Group AG banker facing U.S. charges over Mozambique's "hidden debts" scandal has pleaded guilty to money laundering offenses in the case, Jornal Notícias reported, citing Portuguese news agency Lusa. Surjan Singh appeared before a New York court and pleaded guilty to one count of conspiracy to commit money laundering, though two other charges of securities fraud and wire fraud were dropped. He joins two other former executives at the investment bank — Detelina Subeva and Andrew Pearse — who have also entered guilty pleas. The case centers on the granting of some $2 billion in loans to three state-owned Mozambican companies in 2013 and 2014.

* Zimbabwe's central bank increased its overnight borrowing rate to 70% from 50% to curb soaring inflation and support the country's currency. Annual headline inflation spiked to 175.5% in June from 56.9% in January, with the regulator warning that this could rise above 200% in the near term.

* The IMF said Namibia's economy would face a challenging outlook, with recovery projected to be slow. The fund noted that although the economy would rebalance, it still faces challenges including cutting public debt, shoring up international reserves and spurring growth.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: HKEX to press on despite LSE rebuff; regulators mull key rate decisions

Erin Tanchico, Henni Abdelghani, Sophie Davies and Helen Popper contributed to this report.

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This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.