Browsing: IMF loans

The International Monetary Fund (IMF) executive board approved $4.3 billion requests for emergency financial from South Africa to address the challenging health situation and severe economic impact of the COVID-19 shock.

The funds are under the Rapid Financing Instrument (RFI) which aims at meeting the urgent balance of payment (BOP) needs stemming from COVID-19 pandemic outbreak, limit regional spillovers and catalyze additional financing from other international financial institutions.

The outbreak of the pandemic has led to a sharp economic contraction and significant financing need in South Africa.

Over the last decade, economic activity in the country has weakened despite government spending, this has resulted in increased poverty, unemployment and income inequality.

“South Africa’s economy has been severely hit by the COVID-19 crisis, reporting the highest number of cases in sub-Saharan Africa. A deep economic recession is unfolding as the decline in domestic activity and disruptions in the global supply chain …

The East African coronavirus (COVID-19) battle has been fortified with $1.23 billion from the International Monetary Fund (IMF).

Both Kenya and Uganda have so far confirmed more than 600 cases of the virus.

COVID-19 Funding in Kenya

According to the IMF statement, on Wednesday the IMF Executive Board approved the disbursement of SDR542.8 million (100 per cent of quota, about US$739 million) to be drawn under the Rapid Credit Facility (RCF).

“This will help to meet Kenya’s urgent balance of payments need stemming from the outbreak of the COVID-19 pandemic,” The statement read in part.

The impact of COVID-19 on the Kenyan economy will be severe. It will act through both global and domestic channels, and downside risks remain large.

The Kenyan authorities have taken decisive action to respond to the pandemic’s health and economic impacts, the sudden shock has left Kenya with significant fiscal and external financing needs. Authorities …