IMF - The African Mirror

Jan

2021

IMF says working intensively with Sudan to move toward debt relief

THE International Monetary Fund is working "very intensively" with Sudan to build the preconditions for broad debt relief, and will assess progress on a staff-monitored program in March, according to IMF Managing Director Kristalina Georgieva. She told reporters during an online news conference that she was encouraged by strong support from the United States, Britain and other member countries for providing debt relief to Sudan under the Heavily Indebted Poor Countries (HIPC) initiative, and by the determination of the Sudanese authorities. "We do hope as swiftly as possible to present to the membership a strong case on Sudan for HIPC…

Jan

2021

By The African Mirror

‘Spend as much as you can,’ IMF head urges governments worldwide

BUSINESS

POLICYMAKERS worldwide should embrace more spending to help revive their stuttering economies, the head of the International Monetary Fund has said at Russia's annual Gaidar economic forum. Managing Director Kristalina Georgieva did not give any specific economic forecasts, but made clear her desire for governments to up their spending and that a synchronised approach internationally was best for growth. In 2020, the IMF provided support to 83 countries, she said. "In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say: 'please spend'. Spend as much as you…

Jan

2021

By The African Mirror

IMF approves $34.4 million disbursement for Central African Republic

BUSINESS

THE International Monetary Fund's (IMF) executive board approved a disbursement to Central African Republic of about $34.4 million after completing the first and second reviews of its $115 million loan program, the Fund has said. The country is facing the duel challenges of the coronavirus pandemic as well as a resurgent rebel offensive launched in opposition to elections held last month. IMF Deputy Managing Director Mitsuhiro Furusawa said in a statement that the fallout from the virus appeared to have receded, but the economy remained fragile. "The Covid-19 pandemic has had a substantial impact on C.A.R's economy but appears to…

Nov

2020

By The African Mirror

COVID-19 exposed Kenya’s debt vulnerability though measures helped – IMF

COVID-19

OMAR MOHAMMED COVID-19 has exposed Kenya's debt vulnerabilities though official measures including monetary policy easing have helped shield the economy from the impact of the pandemic, the International Monetary Fund (IMF) said late on Friday. The Fund said it hoped a deal on a new lending facility for Kenya could be presented to its board in early 2021, noting that economic activity in the East African country was starting to pick up despite a drag from sectors such as tourism. Measures including lowering interest rates, letting lenders restructure some loans, targeted tax cuts, and programmes to help vulnerable families had…

Oct

2020

By The African Mirror

U.S. removal of Sudan from ‘sponsors of terrorism’ list is step toward debt relief -IMF

BUSINESS

THE International Monetary Fund says U.S. government plans to remove Sudan from its list of state sponsors of terrorism would clear away one of the hurdles facing the heavily indebted African country as it seeks debt relief. "We are encouraged by the U.S. administration's formal indication to Congress of its intention to remove Sudan from (the list)," Carol Baker, the IMF's Sudan mission chief, said in a statement to Reuters. "The removal of Sudan from the (list)eliminates one of the hurdles toward possible HIPC debt relief." The Heavily Indebted Poor Countries initiative was launched in 1996 by the IMF and…

Oct

2020

By The African Mirror

Extension of G20 debt freeze would be very beneficial – Angola

BUSINESS

ELIZABETH HOWCROFT and MARCH JONES EXTENDING a scheme by major economies to halt billions of dollars in debt service from poor nations during the coronavirus crisis would be very helpful, Angola's finance minister has said, promising a lean approach from her country. The G20 group's Debt Service Suspension Initiative (DSSI) has since April helped more than 40 developing world nations defer at least $5 billion in official debt payments. An extension is expected in coming days, though it might only be until the middle of 2021 rather than the end as debtor nations had hoped. "We are very keen... to…

Oct

2020

By The African Mirror

IMF offers second installment of $102 mln emergency loan to Malawi

BUSINESS

THE International Monetary Fund (IMF) has extended an emergency loan of $101.96 million for Malawi to plug its fiscal deficit, a second instalment of credit offered to tide over the financial hit from the coronavirus. The first loan of $91 million was disbursed in May to fund a widening gap in balance of payment in the south-east African nation. [nL8N2CK05V] “Malawi’s economic outlook has worsened (since May)... with the accelerated spread of the pandemic in the country,” the IMF said in a statement. It said the second credit facility will help strengthen the health care system, step up social spending,…

Sep

2020

By The African Mirror

Banks agree $545 million for Congo Republic economy

BUSINESS

A group of banks has agreed more than $545 million worth of funding to boost Congo Republic's long-suffering economy, officials have said. The oil-producer was hit by a sharp drop in crude prices in 2014, leaving it with debt of nearly $9.5 billion, much of it owed to China and Western oil traders and amounting to 85.5% of the Central African country's gross domestic product (GDP). The IMF agreed a three-year $449 million bailout last year, but the coronavirus pandemic is expected to cause an economic contraction of 9% in 2020, the government has said. A group of banks including…

Aug

2020

By The African Mirror

The IMF’s $4bn loan for South Africa: the pros, cons and potential pitfalls

BUSINESS

DANNY BRADLOW, SARCHI Professor of International Development Law and African Economic Relations, University of Pretoria THE International Monetary Fund (IMF) has approved a R70 billion (US$4.3 billion) loan for South Africa to help the country manage the immediate consequences of the fallout from COVID-19. The Conversation Africa’s editor, Caroline Southey, asked Danny Bradlow to shed some light on what South Africans should expect. What conditions has the IMF attached to the disbursement? The IMF has provided the funding through its Rapid Financing Instrument. This is designed to support countries facing an urgent need for financing due to a crisis such…

Jul

2020

By The African Mirror

IMF approves $171.9 mln to Madagascar to address COVID-19 pandemic

COVID-19

THE International Monetary Fund (IMF) has approved $171.9 million of funding to Madagascar, bringing the total COVID-19 emergency support to the country to $337.9 million. "This is the second emergency disbursement since the onset of the pandemic and will help finance the country's urgent balance of payments and fiscal needs," the IMF said in a statement. - Thomson Reuters Foundation ADVERTISEMENT