Pakistan’s central bank said it met a $1 billion bond payment on Friday, dodging the risk of a near-term default even as worries linger over its ability to pay its long-term debt. The nation’s bonds rallied.
The nation transferred the money for the sukuk dollar bonds due Dec. 5 three days before their maturity to Citigroup Inc., which will distribute the funds to creditors, said Abid Qamar, a spokesperson at State Bank of Pakistan. The notes climbed to 98.9 cents on the dollar Friday, marking a nearly 16-cent comeback from a record low of 83 cents in October, according to indicative pricing data compiled by Bloomberg.
