The board of the International Monetary Fund (IMF) has approved the release of US$447.39 million to Kenya to help the country towards its fiscal consolidation and to reduce the country’s debt burden. Kenya has public debt more than the country could bear
The board of the International Monetary Fund (IMF) has approved the release of US$447.39 million to Kenya to help the country towards its fiscal consolidation and to reduce the country’s debt burden. Kenya has public debt more than the country could bear.
The release of funds follows the decision of the IMF to a 38-month financing arrangement under its extended fund facility and extended credit facility. With this tranche of payment, the IMF has already paid the US $1.65 billion to Kenya.
Kenya would now receive a total of US$2.416 billion from the present agreement to cover expenses for external finance due to the drought and difficult global financial conditions. Kenya intends to retire commercial borrowings in favour of less expensive sources like the World Bank to lessen the burden. Debt servicing puts pressure on its exchequer.
This tranche of the IMF loan is coming after the IMF announced that it would release US$3 billion to Ghana by the first quarter of 2023, according to Finance Minister, Ken Ofori-Atta. The Minister claims that the medium-term macroeconomic framework, structural reforms, and important fiscal measures included in the 2023 Budget are in line with the IMF-supported Programme.
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On economic policies and reforms, Ghana has secured a staff-level agreement that will be supported by a three-year under the Extended Credit Facility.
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