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Italian Foreign minister, Antonio Tajani, wants IMF, US to unblock aid fund to Tunisia. Here’s why

Published

2 years ago

March 19, 2023

European country, Italy is worried that International Monetary Fund’s block on a $1.9 billion loan to Tunisia might lead to a new wave of migrants towards Europe.

Italian Foreign Minister, Antonio Tajani remarked on Sunday as the IMF, the United States, and other international donors stopped bailout talks demanding far-reaching reforms from President Kais Saied to free up the cash.

Tajani told journalists that he has spoken to IMF Managing Director Kristalina Georgieva and urged her to show flexibility to stave off possible financial collapse.

“I reiterated the need for the Fund to intervene quickly in favour of Tunisian stabilisation and growth with economic and financial support.

“The stability and prosperity of Tunisia, with respect for fundamental rights and freedoms, are crucial for the stability of the entire Mediterranean region,” Tajani said.

He had discussed the problem with US Secretary of State Antony Blinken prior to an upcoming meeting of EU foreign ministers.

“Uncontrolled irregular migration can only be reduced by improving the conditions of security and economic stability,” Tajani said, adding that Italy was looking to boost training opportunities for Tunisians as an alternative to migration.

In recent years, refugees and migrants attempting to reach Europe via the Mediterranean Sea lost their lives at an alarming rate. According to the EU statistics agency Eurostat, an analysis done in September 2022 which revealed that in September alone, France received around 15,000 asylum applications, Germany almost 21,000, Austria around 15,700, and Spain more than 11,000, compared to only 8,500 for Italy.

As of 2023, Italy has taken in 20,046 boat migrants, a record number, beating the all-time high set in 2016, when 181,436 migrants reached land in a flotilla of flimsy boats.

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IMF mission concludes 4th loan program assessment in Egypt

Published

1 day 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

3 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.