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Zambia continues plan over debt crisis, proposes another meeting with creditors

Published

2 years ago

July 12, 2022

In the latest move to address his country’s debt crisis, Zambian finance minister Situmbeko Musokotwane, has revealed that another meeting with Zambia’s creditors is schedule for later this month.

The East African country announced on Monday that it has decided to cancel more than $2 billion worth of projects financed by commercial loans.

A high-level team of the International Monetary Fund (IMF), deputy managing director, Antoinette Monsio Sayeh last month visited Zambia on two-day to hold discussions with the country’s officials on the thorny issue of debt.

The minister further revealed that negotiations had been slow because of the large number of Zambia’s creditors.

Zambia suffered the first pandemic-era sovereign default in 2020. At the end of 2021 it had external debt of $17.27bn, according to government data. Approximately $6.6bn of that was held by 18 official and commercial Chinese financiers.

Like Zambia, many African countries depends on international creditors to fund critical aspect of their economies. External debts are not as contentious in many African states as the discipline to expend the funds appropriately on development centred projects, which has always been a course for concern amidst the nature of corruption that characterizes the political and public system in Africa.

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IMF mission concludes 4th loan program assessment in Egypt

Published

10 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.