Latest news with #IMF-supported
Straits Times
5 days ago
- Business
- Straits Times
IMF plans August mission to Senegal on hidden debt, new programme
Find out what's new on ST website and app. A street food vendor pushes her cart near Kermel Market in downtown Dakar, Senegal, May 21, 2025. REUTERS/Zohra Bensemra/File Photo LONDON/NEW YORK - The International Monetary Fund plans a mission to Senegal in August to address hidden debt and start talks on the "contours" of a new loan programme, it said on Thursday. Senegal is grappling with billions in debts hidden by the previous administration, which have prompted the IMF to freeze its loan programme. "The purpose of the mission is going to be to discuss the steps needed to bring the misreporting case to our executive board," IMF communications director Julie Kozack said in a media briefing in Washington. "The team will also use the opportunity to initiate discussions on the contours of a new IMF-supported program for Senegal." Separately, another Fund spokesperson said via email that it needs more data before it can firm up its assessment on Senegal's debt situation and also needs an agreement on key remedial measures. The IMF's executive board must either approve a misreporting waiver - many investors' base case - or order Senegal to pay back previous programme disbursements. With a waiver, Senegal could negotiate a new programme. "Once we have reached agreement on the key corrective measures, the IMF Board will be in a position to consider the Senegal misreporting case and take a decision," a spokesperson for the Fund said in response to emailed questions from Reuters. An agreement on these measures could be reached "hopefully within the coming weeks," that spokesperson added. Top stories Swipe. Select. Stay informed. Asia 11 Thai civilians killed as Thai and Cambodian militaries clash at disputed border: Reports Asia Singapore urges all parties in Thailand-Cambodia border dispute to exercise restraint Asia Deadly Thai-Cambodian dispute puts Asean's relevance on the line Life Wrestling legend Hulk Hogan dies aged 71: US media Singapore Avoid water activities around Tuas Second Link, Raffles Marina after chemical tank accident: NEA Singapore Khatib Camp to make way for housing, with its functions moving to Amoy Quee Camp Singapore Mindef to set up new volunteer management unit to grow volunteer pool Singapore Primary 1 registration: 29 schools to conduct ballot in Phase 2B Bonds jumped on the news. The euro-denominated 2028 bond gained more than 3 cents to bid at 82.88 cents on the euro, and the 2033 dollar-denominated bond gained nearly 3 cents to bid at 70.64 cents on the dollar. DEBT ICEBERG The IMF estimates - based on latest data from Senegalese authorities - that hidden debt stood at $11.3 billion by end-2023, the spokesperson added. This included a portion for state-owned enterprises of about 7.4% of GDP. There have been a range of estimates. S&P pegged the total hidden debt discovered since October 2024 at roughly $13 billion. The size of the hidden debt has escalated since September 2024, when the then newly elected government said an audit of government finances first flagged the issue. The scale dwarfs Mozambique's infamous "tuna bond" scandal -the most recent hidden debt case, which involved roughly $3 billion. The spokesperson said that the IMF, which has come under fire for not catching the off-the-books lending, will present information to the board on how it went undetected. "The IMF is conducting an internal assessment and diagnostic as part of the misreporting process," the spokesperson added. REUTERS
Business Insider
6 days ago
- Business
- Business Insider
Top 10 African countries with the highest IMF debt in July 2025
Just in July alone, the International Monetary Fund (IMF) is reported to be looking into the disbursements of loans to Egypt and Ethiopia, raising new worries about Africa's growing reliance on IMF financing. Business Insider Africa presents the top 10 African countries with the highest debt to the IMF in July 2025. This list is courtesy of data from the IMF's website. Egypt ranks number 1 on the list. While these financial aids are frequently portrayed as lifelines for weak countries, the long-term consequences of high IMF debt are raising concerns across the continent. Egypt got $1.2 billion after completing the fourth assessment of its $8 billion loan program, increasing the total amount disbursed to $3.5 billion. However, the IMF cautioned that Egypt is under "high sovereign stress," with external debt expected to climb from $162.7 billion in 2024/25 to more than $202 billion by the end of the decade. Similarly, Ethiopia received $262 million following a successful third program review, although its financial situation remains fragile. The government is discussing a $8.4 billion restructuring with official creditors under the G20's Common Framework while also preparing to repay a $1 billion Eurobond. The combined burden of IMF loans and commercial debt is straining national budgets and impeding growth projects. On July 8, the IMF published a new analytical note on "How to Stabilize Africa's Debt", emphasizing that debt stabilization typically hinges on stronger institutions, growth-friendly fiscal reforms, and IMF-supported macro stability. Senegal offers a warning story. Disbursements were halted after officials acknowledged to underreporting debt, and the percentage was revised from 74% to over 100% of GDP. S&P downgraded the country, while IMF assistance remains stalled until a realistic recovery plan. These instances highlight a larger issue: while IMF loans can help prevent economic crises, they frequently come with stringent conditions, austerity measures, and little freedom for domestic development goals. Without proper management, governments risk being locked in a cycle of borrowing and repaying, hurting economic and public trust. Having highlighted these facts, here are the African countries with the largest debts to the IMF in July 2025, as per the IMF's database. Compared to the list last month, IMF credits for Egypt, Cote d'Ivoire, Ghana, DRC, Ethiopia, and Tanzania increased, while the rest reduced. Top 10 African countries with the highest IMF debt in July 2025 Rank Country Total IMF Credit Outstanding as of 07/21/2025 1. Egypt 7,422,862,519 2. Cote d'Ivoire 3,104,687,108 3. Kenya 3,022,009,900 4. Angola 2,721,883,340 5. Ghana 2,707,198,500 6. DRC 1,952,850,000 7. Ethiopia 1,593,683,500 8. Tanzania 1,335,730,000 9. Cameroon 1,150,920,000 10. Senegal 992,936,112
Daily Maverick
30-06-2025
- Business
- Daily Maverick
IMF to provide Ukraine with $500 million after review
Total disbursements under the IMF-supported program for Ukraine will reach $10.6 billion with the new $500 million which will be channeled for budget support, the fund said. IMF said that it maintains Ukraine's 2025 growth forecast at 2%-3%, as a smaller electricity deficit is balanced by lower gas production and weaker agricultural exports. 'Russia's war continues to take a devastating social and economic toll on Ukraine. Nevertheless, macroeconomic stability has been preserved through skillful policymaking as well as substantial external support' the first deputy managing director of the fund Gita Gopinath said. 'The economy has remained resilient, but the war is weighing on the outlook, with growth tempered by labor market strains and damage to energy infrastructure,' Gopinath added. Ukrainian authorities are continuing work to complete their debt restructuring strategy, which is essential to create room for priority expenditures, reduce fiscal risks, and restore debt sustainability, the IMF said. (Reporting by Gursimran Kaur in Bengaluru;; Editing by Chizu Nomiyama )
The Hindu
30-06-2025
- Business
- The Hindu
IMF to provide Ukraine with $500 million after review
The International Monetary Fund said on Monday (June 30, 2025) it has completed its eighth review under an extended arrangement as part of the Extended Fund Facility for Ukraine, providing the country with a disbursement of about $500 million (SDR 0.37 billion). Total disbursements under the IMF-supported program for Ukraine will reach $10.6 billion with the new $500 million, which will be channeled for budget support, the fund said. IMF said that it maintains Ukraine's 2025 growth forecast at 2%-3%, as a smaller electricity deficit is balanced by lower gas production and weaker agricultural exports. "Russia's war continues to take a devastating social and economic toll on Ukraine. Nevertheless, macroeconomic stability has been preserved through skillful policymaking as well as substantial external support" the first deputy managing director of the fund Gita Gopinath said. "The economy has remained resilient, but the war is weighing on the outlook, with growth tempered by labour market strains and damage to energy infrastructure," Ms. Gopinath added. Ukrainian authorities are continuing work to complete their debt restructuring strategy, which is essential to create room for priority expenditures, reduce fiscal risks, and restore debt sustainability, the IMF said.
Business Recorder
30-06-2025
- Business
- Business Recorder
IMF to provide Ukraine with $500 million after review
The International Monetary Fund said on Monday it has completed its eighth review under an extended arrangement as part of the Extended Fund Facility for Ukraine, providing the country with a disbursement of about $500 million (SDR 0.37 billion). Total disbursements under the IMF-supported program for Ukraine will reach $10.6 billion with the new $500 million which will be channeled for budget support, the fund said. IMF said that it maintains Ukraine's 2025 growth forecast at 2%-3%, as a smaller electricity deficit is balanced by lower gas production and weaker agricultural exports. IMF begins new review of war-torn Ukraine's $15.5 billion loan 'Russia's war continues to take a devastating social and economic toll on Ukraine. Nevertheless, macroeconomic stability has been preserved through skillful policymaking as well as substantial external support' the first deputy managing director of the fund Gita Gopinath said. 'The economy has remained resilient, but the war is weighing on the outlook, with growth tempered by labor market strains and damage to energy infrastructure,' Gopinath added. Ukrainian authorities are continuing work to complete their debt restructuring strategy, which is essential to create room for priority expenditures, reduce fiscal risks, and restore debt sustainability, the IMF said.
