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IMF may need to augment Egypt program amid Gaza war impacts, Georgieva says

IMF may need to augment Egypt program amid Gaza war impacts, Georgieva says

INTERNATIONAL Monetary Fund Managing Director Kristalina Georgieva told Reuters that the Fund was "seriously considering" a possible augmentation of Egypt's $3 billion loan program due to economic difficulties posed by the Israel-Hamas war. Georgieva told Reuters in an interview on the sidelines of the Asia Pacific Economic Cooperation Summit that the conflict is "devastating" Gaza's population and economy and has "severe impacts" on the West Bank's economy and is also posing difficulties for neighbouring countries Egypt, Lebanon and Jordan through the loss of tourism and higher energy costs.
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Egypt’s bonds fight back after Moody’s downgrade triggers tumble

Egypt’s bonds fight back after Moody’s downgrade triggers tumble

EGYPT's government bonds fought back from an initial heavy tumble after Moody's had downgraded the country's credit rating to a new low and the head of the IMF had warned Cairo against delaying another currency devaluation. Moody's, which had been eyeing up a possible downgrade for months, concluded the process late on Thursday by cutting it one notch into the 'substantial risk' Caa1 bracket which is seven rungs into 'junk' territory. The rating firm had cited the country's worsening debt problems amid a bruising economic crisis that has triggered a string of devaluations, record inflation and more of its citizens to seek risky…
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Chad creditors to meet this week; IMF calls on Glencore to ‘step forward’

Chad creditors to meet this week; IMF calls on Glencore to ‘step forward’

ANDREA SHALAL CHAD'S official creditor committee will meet this week amid growing pressure from the International Monetary Fund and others for progress on the country's request for debt restructuring, two sources briefed on the matter said. IMF Managing Director Kristalina Georgieva told Reuters the key issue was coming to an agreement with Chad's main private creditor Glencore on the country's debt restructuring needs, given a jump this year in the price of oil, a key revenue generator for it. Chad in January 2021 become the first country to request a restructuring of its $3 billion external debt under the Common…
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‘Spend as much as you can,’ IMF head urges governments worldwide

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

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…
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More synchronized action needed to tackle COVID economic crisis

More synchronized action needed to tackle COVID economic crisis

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…
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Sudan gives final approval to 2021 budget – finance ministry

Sudan gives final approval to 2021 budget – finance ministry

A joint meeting of Sudan's ruling council and cabinet has given final approval to the country's 2021 budget, a finance ministry statement said. The budget is the first to be passed since the removal of Sudan from the U.S. state sponsors of terrorism list and a peace deal involving some rebel groups last year. Sudan is going through a deepening economic crisis, with inflation in December at 269% and periodic shortages of fuel, bread, and electricity. International Monetary Fund Managing Director Kristalina Georgieva said on Monday the IMF was working "very intensively" with Sudan to build the preconditions for broad…
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IMF chief warns of “lost generation” if low-income countries don’t get more help

IMF chief warns of “lost generation” if low-income countries don’t get more help

ANDREA SHALAL  The head of the IMF has urged advanced economies to provide more resources to low-income countries, warning of an emerging "Great Divergence" in global growth that could risk stability and trigger social unrest for years to come. International Monetary Fund Managing Director Kristalina Georgieva told reporters that 50% of developing countries were at risk of falling further behind, which raised concerns about stability and social unrest. To avert bigger problems, she said rich countries and international institutions should chip in more. She also urged heavily indebted countries to seek debt restructuring sooner rather than later, and to boost…
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IMF chief warns of ‘dangerous divergence’ recovery

IMF chief warns of ‘dangerous divergence’ recovery

THE head of the International Monetary Fund has warned of a "dangerous divergence" between wealthy and developing countries as they seek to recover from the COVID-19 pandemic. Kristalina Georgieva said that strong growth in wealthy countries like the United States was "good news" but developing countries were being held back by slow vaccination rates. "That is danger for the coherence of growth and it is also a danger for global stability and security," she told the Paris Peace Forum where the heads of the World Trade Organization (WTO) and World Bank also spoke. WTO director-general Ngozi Okonjo-Iweala similarly expressed concerns,…
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