Kenya Seeks Fresh IMF Support Amid Debt Challenges
Kenya and the IMF have agreed to discuss a new lending program, forgoing the ninth review of the current $3.6 billion loan. Kenya's economy is under strain with high debt servicing costs. The existing program is set to expire, and new financial strategies are in demand.
Kenya and the International Monetary Fund (IMF) have decided to negotiate a new lending program for the country, opting against the ninth review of an ongoing $3.6 billion loan. Kenya's economy is currently grappling with high debt-servicing costs after excessive borrowing over the past decade.
In a statement from Nairobi, Haimanot Teferra, the IMF's mission chief, announced that an understanding was reached with Kenyan authorities to forgo the ninth review under the existing Extended Fund Facility and Extended Credit Facility programs.
Finance Minister John Mbadi confirmed that the government is actively seeking new financing arrangements. Last year saw financial turmoil fueled by anti-tax protests and disputes over new borrowing from the UAE. Kenya's debt-to-GDP ratio stood at 65.7% as of June, exceeding sustainable levels.
(With inputs from agencies.)
ALSO READ
US economy likely generated a solid 160,000 jobs last month, but Trump's trade wars cloud outlook
Maharastra’s economy to clock 7.3 per cent growth in 2024-25: Economic Survey
Maharashtra’s economy to clock 7.3 per cent growth in 2024-25: Economic Survey
Maharashtra’s economy expected to grow 7.3 per cent as per advance estimates of 2024-25, as per Economic Survey tabled in assembly.
U.S. Economy Faces 'Detox Period' as Spending Shifts
Google News