Browsing: IMF debt relief

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 …

After Zambia’s sovereign default, the G20 expressed concern that a “debt tsunami” could engulf the continent’s most heavily indebted nations. In response, the G20 and the Paris Club established a “common framework” with the intention of assisting more than 70 countries in dealing with the aftermath of the pandemic by providing debt relief and restructuring.

Given the substantial share of Zambia’s debt that is owned by Chinese lenders, the Paris Club needed the participation of China, which is not a member of the Paris Club. At the beginning of May, it was announced that China would co-chair the official creditor committee with France.

At the Paris negotiations, it will be determined whether Chinese and international lenders can work side by side to establish a clear debt overhaul plan. This might also pave the way for debt-restructuring talks between Chinese institutions and other countries that are in debt.…

Chinese President Xi Jinping on Monday agreed in principle to a restructuring of Congo’s vast debts, an issue that was blocking negotiations with the International Monetary Fund, a minister said.

Acknowledging this Congolese Prime Minister Anatole Collinet Makosso on moday June 21 said that the financial difficulties his country has faced, delayed servicing of the debt and promised to reduce a debt that has recently increased.

The prime minister says the health crisis brought about by the Covid-19 led to an increase in borrowing that was aimed at cushioning its citizen without the ability to service it and thus it was time to make their debt sustainable going forward.

“Our debt currently stands at nearly $10,892,454,000 as of 31 December 2020, or 98% of GDP. Our objective is to bring it down to below the CEMAC community standard set at 70% of GDP,” Anatole Collinet Makosso said to the National …

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 …