· In an unprecedented development, the government of Namibia has applied for a N$4,5 billion loan from the International Monetary Fund
· The Namibian Minister of Finance said the application was made through the rapid financial instrument (RFI) programme of IMF
In an unprecedented development, the government of Namibia has applied for a N$4,5 billion loan from the International Monetary Fund. The request was made for funding Namibia’s this year’s budget of around N$21,4 billion. The national budget was tabled early this year. The proposal is to source at least N$10,4 billion of the shortfall from the Namibian capital market. The balance is to be drawn from savings and external borrowings. Namibia has 191 million special drawing rights with the IMF unutilised. The country is seeking to draw from this facility to address the impact of Covid-19.
Namibia became a member of IMF in September 1990. This is the first time Namibia would be applying for assistance from the fund after becoming a member.
The Namibian Minister of Finance said the application was made through the rapid financial instrument (RFI) programme of IMF that provides fast and low-access financial assistance – especially when faced with an urgent balance of payments need, without the need to have a fully-fledged programme.
The loan conditions of the IMF had dissuaded many countries from applying. However, the terms have been eased with the outbreak of Covid-19. As on date, IMF has approved more than US$14 billion in pandemic-related loans to African countries. The most recent approval for South Africa, for N$70 billion was announced this week.
