Browsing: IMF debt relief

• Africa is increasing borrowing on global capital markets.
• Eurobonds are the preferred borrowing option for most African countries.
• The IMF advices setup of a rescue plan for African borrowers, in lure of another global crisis.

Africa capital market access is improving as the world markets start seeing a return to lower interest rates. Between 2007 and 2020, more than 20 African countries tapped into international capital markets to finance their ambitious development plans.

According to the International Monetary Fund (IMF), most of these countries opted for Eurobonds issued by global financial centres.

“Along with this access to the markets came scaled-up lending from bilateral lenders, especially China, and continued access to loans from the multilateral organizations like the IMF and World Bank,” reports Gregory Smith, author of ‘Where Credit is Due: How African Debt Can Be a Benefit, Not A Burden’.

But after a pause by big lenders such as …

The Horn of Africa region – Eritirea, Ethiopia, Sudan, Djibouti and Somali – has faced persistent food shortages due to a mix of climatic conditions and conflict in some parts of the region. Over 22 million people face a dire lack of food, a decade after setting the global sustainable development goals (SDGs).

Four consecutive seasons of failed rains in the region and in Northern Kenya has threatened to further exacerbate the food situation in the Horn.

The single known reason why rains are failing in what is supposed to be the world’s most rain rich region is climate change, and that is not a natural disaster, it is man made.

Also Read: The economics of harvesting rain

Weather patterns have changed. Seasons have become unpredictable. The phenomenon explains itself, weather, by definition is the condition of the atmosphere at any given time, but climate is the noted weather patterns …

The International Monetary Fund (IMF) picked 28 countries that are to benefit from the $142.7 million debt relief program and Rwanda and Tanzania are drawing benefits.

In the East Africa region, Rwanda led the as the country that enjoyed the highest debt relief of $71.23 million while Tanzania followed at $26.43 million, Burundi at $25.42 million and Ethiopia at $19.71 million. South Sudan, Kenya and Uganda were not part of the selected 28 countries.

This comes after Bretton Woods institution which now plays a central role in the management of balance of payments difficulties and international financial crises, approved the third tranche of grants for debt service relief for 28 member countries under the Catastrophe Containment and Relief Trust (CCRT).

In April and October last year, two tranches were approved which now facilitates the disbursement of grants under the CCRT for payments of all eligible debt service totalling $238 million …