Browsing: International Monetary Fund (IMF)

The creditor committee for Zambia stated that the conditions of the reorganisation would be finalised in a memorandum of understanding, but they did not provide any other specifics.

Additionally, it requested that private creditors “commit without delay” to the process of negotiating debt relief on conditions at least as favourable as those proposed by the government.

Kevin Daly, who is in charge of a group of Zambian Eurobond holders, praised the bilateral creditors’ statement but reiterated the need for access to the Debt Sustainability Analysis (DSA) of the IMF, which serves as the negotiation’s starting point.

The World Bank’s president, David Malpass, reiterated such sentiments, saying, “I implore official bilateral and private sector creditors to participate on equal terms, granting Zambia a considerable net-present-value debt reduction.”…

• The Nigeria Country Risk report by Fitch Solutions projects Nigeria’s economy to grow by 2.8% in 2022.
• According to data published by the National Bureau of Statistics, the real GDP growth accelerated for a third consecutive quarter to 5.0% y-o-y in Q221, from 0.5% Q121.
• This is on the back of stronger household spending and an increase in crude oil export value.

The Nigeria Country Risk report which has been released by Fitch Solutions has projected the West African country’s economy to grow by 2.8% in 2022.

This is on the back of stronger household spending and an increase in crude oil export value.

The projections were made following expected growth of 2.1% in 2021 from the 1.9% contraction recorded in the previous year, which was affected by the covid-19 lockdown measures.

Government consumption

According to the report, government consumption is expected to rise in the coming year, based on …

The International Monetary Fund (IMF) which has so far lent about $491.5 million to Uganda said that it is a misconception to assume that Uganda’s debt is unsustainable.

Uganda’s public debt levels are within a manageable threshold in the long term, noted Izabela Karpowicz the IMF Resident Representative for Uganda.

“We used to rate Uganda at low risk and now it will be moving to medium risk and this is due to Covid-19. It is not correct to say the debt is not sustainable over the medium and long term.” Ms Karpowicz said on the sidelines of a policy dialogue on Uganda’s economy, which was organised by the Civil Society Budget Advocacy Group (CSBAG) and the Advocates Coalition for Development and Environment (ACODE).

She noted that how resources that are being borrowed now and in the future will be deployed productively should be what Ugandans should be worried about and …

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 …

The Boards of Directors of the African Development Bank (www.AfDB.org) Group on Friday approved a proposal for the clearance of about $413 million in arrears on loans owed by Sudan to the institution, marking a major milestone in the country’s re-engagement with international financial institutions and the global economy.

The proposal enables the Bank to proceed with clearing Sudan’s arrears with the African Development Bank Group, with the support of the United Kingdom and Sweden. The U.K will provide bridge financing to clear Sudan’s arrears to the African Development Fund, while Sweden has committed to providing grant financing of about $4.2 million to meet Sudan’s burden-share for the operation.

Upon full clearance of the arrears to the Bank group, sanctions on Sudan will be lifted and a Policy-Based Operation (PBO) will be provided to the country as part of the Bank’s full re-engagement, to complement on-going Bank operations.

Clearing of …

The International Monitory Fund (IMF) predicts that the economic growth for Ethiopia in 2020 is 1.9 per cent while its growth in 2021 will be at zero.

This is from IMF’s Regional Economic Outlook of Sub Saharan Africa under the title, ‘A Difficult Road to Recovery.’ The report shows how African countries’ economies have been hit severely by the covid-19 pandemic.

According to the report, the economic growth of African countries in 2020 has significantly dropped due to the pandemic and estimates a worse forecast than the ones in its April reports.

The report further states that this year very few countries have has positive improvements in terms of growth while the rest are below zero and the majority are in negative performance.

According to the report,  in the Ethiopia budget for the year that ended on July 7, 2020, the county’s economic growth has shown a massive drop in …

The International Monetary Fund (IMF) expects debt-to-GDP ratios to go up significantly to 65 per cent in emerging markets, 50 per cent in low-income countries and around 125 per cent in advanced economies.

This is according to IMF Managing Director Kristalina Georgieva, speaking during the World Bank’s annual meetings which were organized virtually.

“Today we face a new Bretton Woods moment. A pandemic that has already cost more than a million lives. An economic calamity that will make the world economy 4.4 per cent smaller this year and strip an estimated $11 trillion of output by next year. And untold human desperation in the face of huge disruption and rising poverty for the first time in decades. Once again, we face two massive tasks: to fight the crisis today—and build a better tomorrow,” she said.

Georgieva said that prudent macroeconomic policies and strong institutions are critical for growth, jobs and …

The covid-19crisis could cost the world an estimated $28trn in output losses over the next five years according to the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva.

She gave her remarks during the IMF and World Bank Group annual meeting which was held virtually.

“Nine months into the pandemic, we are still struggling with the darkness of a crisis that has taken more than a million lives, and driven the economy into reverse, causing sharply higher unemployment, rising poverty and the risk of “a lost generation” in low-income countries,” Georgieva said.

She added that over the last few months the picture has become less dire although IMF continues to foresee a worst global recession since the 1930 Great Depression. She also notes that in 2020 growth is expected to fall to -4.4 per cent.

She also added that despite there being tremendous uncertainty around IMF’s forecast, they …

Governments should increase public investments to boost their economies after the massive shock from the Covid-19 according to the International Monetary Fund (IMF).

In June the IMF predicted a contraction of 4.9 per cent in global GDP for 2020 but the fall could be even higher as many governments are now dealing with the second wave of infections. The IMF is now calling on governments to increase public investments so as to aid economic recovery and create jobs.

“For advanced and emerging market economies … Increasing public investment by 1 per cent of GDP in these economies would create 7 million jobs directly, and between 20 million and 33 million jobs overall when considering the indirect macroeconomic effects,” the fund said in its latest Fiscal Monitor.

IMF said that in the period of high uncertainty, increasing public investment by 1 per cent of GDP could strengthen confidence in the recovery …

The global public debt will record a high of 100 per cent to GDP in 2020 according to the International Monetary Fund (IMF) Managing Director Kristalina Georgieva.

Kristalina Georgieva was speaking during a virtual press conference entitled “Overcoming the Crisis and Building a More Resilient Economy.”

“The picture today is less dire, as we now estimate that developments in the second and third quarters (Q2 and Q3) were somewhat better than expected, allowing for a small upward revision to our global forecast for 2020. We continue to project a partial and uneven recovery in 2021. We expect global output to remain well below our pre-pandemic projections over the medium term. For almost all countries, this will be a setback to the improvement of living standards.” She said

She added that now the projections are less dire as central banks and fiscal measures have given a powerful injection of liquidity in …