News & Analysis: IMF

IMF announces financing plan aimed at Sudan debt relief

“The amount of the financing was not disclosed, but the IMF and World Bank put Sudan’s total external debt at an estimated $49.8 billion as of the end of 2019. “

via The East African

Surprising resilience: DFIs take stock of their COVID-19 response

“Many DFIs focused on supporting their existing clients through the crisis rather than finding new clients. Investing has been more challenging, but concerns that their balance sheets would take a hit didn’t materialize, nor did the type of demand they expected for liquidity support.”

via Devex

African nations expect $33.6B in Special Drawing Rights

“African nations expect to receive $33.6 billion from a new issuance of Special Drawing Rights, according to Vera Songwe, executive secretary of the United Nations Economic Commission for Africa. On Wednesday, G-20 finance ministers and central bank governors reaffirmed calls for the International Monetary Fund to make a proposal for a new allocation of $650 billion in SDRs — an international reserve asset — that will provide countries around the world with liquidity. The last SDR allocation was issued in 2009 following the global financial crisis.”

via Devex

Gov’t to Introduce New Taxes, Limit Hiring and Cut Employees’ Allowances to Meet IMF Conditions

“This will be accomplished through continued restraint in hiring and wage awards (including in the four-year wage agreement that will come into effect in FY2021/22) and by improved wage-bill management.”

via Tuko

The Risks We See and Those We Don’t: A Heads-Up to African Countries

“No serious debt sustainability analysis, and indeed no pre-emptive re-profiling of external debt, is possible without transparency concerning loan agreements,” writes Prof. Danny Leipziger.

via COVID-19 Africa Watch

Global Financing to End the Pandemic

“Such an unprecedented global undertaking requires strong cooperation, including financial support. Yet the urgency should be clear to all. As long as COVID-19 persists at high rates of transmission anywhere in the world, the pandemic will continue to disrupt global production, trade, and travel, and will also give rise to viral mutations that threaten to undermine previously acquired immunity from past infections and vaccinations.”

via Project Syndicate

Please keep your loans, Kenyans tell IMF

“According to an Infotrak study on Kenyans’ perception on foreign debt, 81 percent of Kenyans are angry, fearful or anxious because of the country’s ballooning debt, while 62 percent do not approve of regular borrowing from foreign sources. Meanwhile, 52 percent of Kenyans rate the government’s handling of its borrowed funds as poor, while 76 percent believe Kenya gets most of her foreign loans from China.”

via Daily Nation

IMF Approves KSh 257 Billion Financing Package Loan to Kenya

“Kenya’s debt remains sustainable, although it is at high risk of debt distress, according to the IMF.”

via Tuko

IMF Board approves $174m COVID-19 emergency funds for South Sudan

“The disbursement will help finance South Sudan’s urgent balance of payments needs and provide critical fiscal space to maintain poverty-reducing and growth-enhancing spending.”

via The East African

IMF COVID-19 Emergency Loans: A View from Four Countries

“An in-depth analysis of Cameroon, Ecuador, Egypt and Nigeria and found mixed results in meeting the IMF’s transparency commitments. There remained inconsistencies in the types of measures to which governments committed, their implementation, and the role of the IMF in ensuring compliance. The transparency commitments in the emergency loans spurred all four governments to produce information about their spending and contracts that they would have otherwise not published. However, the amount, accessibility, and quality of the disclosed information varied widely and was inadequate for meaningful oversight for any of the four countries.”

via Transparency International