News & Analysis: IMF

Why the developing world needs a bigger pandemic response

“The appeal of SDRs for developing countries is that they fill a gap in the toolkit available to advanced economies: money creation. While advanced economies have been able effectively to print money by buying their own bonds in a world of low or negative interest rates, most developing countries cannot do that without risking instability.”

via Financial Times

Zambia’s default shows new approach needed for Chinese debt

“Zambia’s debt default shows that Western lenders need to develop new ways of factoring existing Chinese loans into their decisions. In essence, the long-term consequence of Zambia’s default may be to deter Western lending to countries where China is already a creditor.”

via The Africa Report

Sub-Saharan Africa Post COVID-19 Economic Recovery Relies on Governance Reforms

“The IMF has cautioned Sub-Saharan African countries to continue governance reforms that will improve trust in the rule of law and improve business conditions to encourage external support.”

via Daily Observer

IMF Projects Ethiopia’s Growth to Flatten Next Year

“The IMF estimates economic growth for Ethiopia this year to drop down to 1.9 percent, a level last recorded in 2002. The IMF attributed the decline in economic growth for the continent and Ethiopia to the severe impacts of COVID-19 that spread since early this year.”

via Addis Fortune

IMF Executive Board Completes Sixth Review Under the Extended Credit Facility Arrangement for Niger and Approves a US$19.9 Million Disbursement

“The need to protect the economy and vulnerable populations in the face of the COVID-19 pandemic justifies larger fiscal deficits in 2020 and 2021. However, to safeguard Niger’s public finances, it will be important to guard against high deficits becoming entrenched, step up revenue collection, improve the quality of public spending, and ensure good management of forthcoming additional oil revenues.”

via IMF

IMF Executive Board Approves a US $156 million New Disbursement for Cameroon to Address the impact of the COVID-19 Pandemic

“The COVID-19 pandemic continues to pose significant challenges for Cameroon. Declining economic activity and persisting terms of trade shock are giving rise to substantial fiscal pressures and an urgent balance of payments need.”

via IMF

Emerging economies plead for more ambitious debt relief programmes

“Financial assistance for cash-strapped governments has so far fallen well short of what is needed — and of what advanced economies have been willing to do for themselves — according to critics.”

via Financial Times

Ghanaian finance minister: Africa deserves more COVID-19 help

“Africa has recorded more than 1.5m cases and counting, though in terms of infections and deaths, we have fared better than most regions. Our economies, however, have not been spared. Across the continent, governments are facing falling revenues, rising expenditures, increasing debt distress, and significant reversals in development indicators.”

via Financial Times

IMF special drawing rights offer Africa a lifeline

“African economies, hit simultaneously by COVID-19 and low commodity prices, are facing a deadly liquidity crisis as governments desperately try to shore up crumbling economies. But there is a neat solution to their problems – IMF Special Drawing Rights.”

via African Business Magazine

Global Consensus Is Hard to Find. Here’s Where Action Is Still Possible.

“Finance ministers and officials from around the world will gather soon for a virtual annual meeting of the IMF and World Bank. Assembled officials should advance consensus on areas where, regardless of the political outcome in the U.S., collective action will be needed to address the worst development and humanitarian crisis in modern history.”

via Barron's