Browsing: IMF Support to Africa

The IMF and Niger have reached a staff-level agreement on a $53 million loan.
    • The Nigerien Authorities and the Staff of the International Monetary Fund (IMF) have reached an agreement at the staff level on the first review of Niger’s economic programme under the Extended Credit Facility (ECF)
    • This year’s growth is anticipated to pick up to a healthy 6.9 per cent from where it was at the beginning of the year
    • To foster robust and inclusive economic growth, it is more important than ever to maintain the execution of reforms to increase domestic tax mobilisation, the quality of public expenditure, openness, and the fight against corruption

    Niger is receiving approximately US$276 million over the course of a three-year. The loan was granted by the International Monetary Fund (IMF) in December. This loan is intended to assist Niger in recovering from the consequences of the Covid-19 pandemic.

    According to a statement released by the IMF on Tuesday, The International Monetary Fund (IMF) and Niger

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 International Monetary Fund (IMF) Executive Board approved $7.6 million debt relief for Burundi due over the next three months.

The debt relief which is under the Catastrophe Containment and Relief Trust are due from July 21, 2020, to October 13, 2020. The International Monetary Fund will grant an additional debt relief covering the period from October 14, 2020, to April 13, 2022, which will be subject to availability of resources in the CCRT potentially bringing total relief to an equivalent of $24.97 million.

The debt relief will help free up resources for the needs of the public sector as well as other emergency spending and help ease the balance of payments shock posed by the pandemic.

Also Read: IMF boosts Kenya, Uganda virus fight with $1.23 billion

Burundi’s effects from the pandemic are through the evolving domestic outbreak and economic spillovers from the global and regional environment.

The 2020 …

The Executive Board of the International Monetary Fund (IMF) approved a disbursement under the Rapid Credit Facility (RCF) of about $69.49 million to Chad to address urgent balance of payment needs stemming from the COVID-19 pandemic.

This is the second funding in three months under RCF to address financing needs arising from the pandemic, which brings the country’s total IMF support since COVID -19 pandemic outbreak to $183.60 million. The board also confirmed the cancellation of the Extended Credit Facility (ECF) arrangement which was to expire end of September this year.

The IMF’s second RCF will provide timely support for the implementation of additional measures to address the COVID-19 crisis and lessen its severe impact. Chad’s authorities are also taking steps to ensure transparency and accountability in the use of COVID-related resources, including an ex-post audit of crisis-related spending and the publication of crisis-related procurement contracts.

The Chadian economy continues …