(3 Minutes Read)
Nairobi has sought a new bailout from the IMF after the expiration of the previous USD 3.6 billion deal in April. Kenya hopes to raise USD 1.3 billion from a bond issuance later this month.
Talks between Kenya and the International Monetary Fund (IMF) for a new lending program are at a stalemate, the country’s finance minister John Mbadi said in a news briefing. He said that the disagreement was over the classification of debt.
According to Mbadi, the international lender wants securitized loans to fund infrastructure projects classified as sovereign debt. Nairobi objects. Mbadi said that further talks will be held to reach an agreement without specifying when.
Nairobi has sought a new bailout from the IMF after the expiration of the previous USD 3.6 billion deal in April. Kenya hopes to raise USD 1.3 billion from a bond issuance later this month.
Read Also:
https://trendsnafrica.com/imf-and-western-allies-to-help-kenya-to-come-out-of-fatf-grey-list/
In October, the country managed to reprofile its USD 5bn loan acquired from China to build a modern railway to Yuan, thereby saving the Treasury millions in interest payments. Of Kenya’s USD 40.5 billion in external debt at the end of March, it owed USD 14.4 billion to the World Bank, USD 7.52 billion to eurobond investors and almost USD 5.04 billion to China, according to Treasury data.