International Monetary Fund - The African Mirror

Dec

2020

U.S. reinstates Sudan’s sovereign immunity, authorizes funds to help pay debt

NAFISA ELTAHIR and HUMEYRA PAMUK THE United States has reinstated Sudan's sovereign immunity, as the U.S. Congress passed legislation formalizing the move, following the ending of Sudan's designation as a state sponsor of terror. However, the legislation includes an exemption allowing lawsuits by the families of victims of the September 11, 2001, attacks on the United States already underway in U.S. courts to move forward, although experts say Sudan is unlikely to lose those cases. The state sponsor of terror designation, which was in place for almost three decades, had weighed on Sudan's economy and restricted its ability to receive…

Nov

2020

By The African Mirror

Sudan inflation soars, raising spectre of hyperinflation

BUSINESS

PATRICK WERR INFLATION in Sudan has risen to one of the highest levels in the world, and the country risks slipping into hyperinflation unless it gets its budget deficit and money supply under control, economists say. The runaway prices have worsened an economic crisis for millions of ordinary Sudanese and imperilled a political transition under a military-civilian power-sharing deal. The government has run up enormous budget deficits by subsidising the cost of fuel, then financed the deficits by printing money. This has debased the currency, weakening it against other currencies and driving inflation up to annual 230% in October, according…

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

More synchronized action needed to tackle COVID economic crisis

BUSINESS

THE international community must do more to tackle the economic fallout of the COVID-19 crisis, the head of the International Monetary Fund said on Monday, publicly calling on the World Bank to accelerate its lending to hard-hit African countries. Some of the key events of the virtual and elongated annual meetings of the IMF and World Bank take place this week, with the most pressing issue how to support struggling countries. "We are going to continue to push to do even more," IMF Managing Director Kristalina Georgieva said during an online FT Africa summit. "I would beg for also more…

Aug

2020

By The African Mirror

Nigeria might fall into recession as virus takes toll, budget office says

BUSINESS

FELIX ONUAH NIGERIA might fall into recession in the third quarter, the head of the country's budget office said on Thursday, citing the impact of low oil prices and the coronavirus pandemic on Africa's largest economy. The continent's top oil producer faces its worst economic crisis in four decades in the wake of an oil price war between Russia and Saudi Arabia at the start of the year, and the pandemic, which hurt demand for its main export commodity which provides 90% of foreign exchange earnings. Ben Akabueze, director-general of the budget office, told reporters it was expected that growth…

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