Latest news with #IMFExecutiveBoard
New Straits Times
25-07-2025
- Business
- New Straits Times
IMF reaches deal with Argentina to unlock US$2 billion tranche
WASHINGTON: The International Monetary Fund (IMF) on Thursday announced a deal with the Argentine government as part of the first review of a US$20 billion loan programme, paving the way for a US$2 billion disbursement. This second loan tranche is still subject to approval by the IMF Executive Board, which is due to meet by the end of the month. It would bring the total amount available to Argentina under the programme announced in April to around US$14 billion. "The programme has had a strong start, underpinned by the continued implementation of tight macroeconomic policies, including a strong fiscal anchor and a tight monetary stance," the IMF said in a statement. It highlighted an exchange rate managed at expected levels and an easing of inflation, which reached 39.40 per cent year-on-year at the end of June, compared with 117.80 per cent at the end of 2024. The IMF noted continuing economic growth and a decline in poverty rates, which had topped 50 per cent at one point before falling back to 38.10 per cent at the end of 2024, around the level before budget-slashing libertarian Javier Milei became president. The Washington-based fund also cited Argentina's return to international financial markets after Moody's upgraded its rating earlier this month, from Caa3 to Caa1, although it remains in the speculative category. The IMF loan was part of a US$42 billion bailout that also included funding from the World Bank and the Inter-American Development Bank. Milei was elected in December 2023 on the promise of reviving the South American country's crisis-hit economy, which achieved its first budget surplus in 14 years in 2024 thanks to austerity measures and sweeping public sector cuts. Argentina, which has a track record of economic crises and hyperinflation, is the IMF's biggest debtor, ahead even of war-torn Ukraine. It owes the IMF US$44 billion under a 2018 loan agreement — the lender's biggest ever — on which it has since renegotiated the repayment terms.
Time of India
13-07-2025
- Business
- Time of India
Pakistan's economic reforms under IMF's loan strong so far: IMF representative
Islamabad, Pakistan's economic reforms under the IMF's USD 7 billion loan have been "strong so far", a representative of the international money lender said on Sunday. Pakistan had secured a three-year aid package deal in July 2024. The International Monetary Fund's (IMF) Resident Representative for Pakistan Mahir Binic said the country's performance under the three-year Extended Fund Facility (EFF) had been "strong so far" and termed its successful first review by the IMF Executive Board in May as a key milestone. The EFF aims to "cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth", he said. So far, two instalments of the IMF loan have been issued to Pakistan which is vigorously following the guidelines agreed with the lender. Live Events Binic delivered a lecture here as part of a series organised by Sustainable Development Policy Institute (SDPI), a leading think tank in Islamabad. "Early policy measures have helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges," Binici said. He said that structural reforms remained central to Pakistan's long-term economic sustainability, particularly reforms that strengthen tax equity, improve the business climate and encourage private-sector-led investment. Banici hailed the IMF's continued support for the country's economic and climate reform agenda. The Resilience and Sustainability Facility (RSF) approved in March was designed to help countries like Pakistan bolster resilience to climate-related vulnerabilities and meet international climate commitments, he added. The IMF official mentioned that the key areas of reform under the RSF, which is a USD 1.3 billion arrangement, included enhancing public investment planning, promoting efficient and sustainable use of water resources, improving institutional coordination for disaster preparedness and financing, along with expanding the availability and transparency of climate-related data. Binici said that "support through the RSF will not only strengthen Pakistan's climate resilience but also help unlock green investments and foster a more climate-conscious economic trajectory". The IMF official also focused on the evolving economic landscape across West Asia and North Africa (MENA) region and Pakistan, stating that growth across the MENA region, as well as in Pakistan, was expected to strengthen in 2025 and beyond. The MENA region, or Middle East and North Africa, is a geographical area encompassing West Asia and North Africa. However, he cautioned that "elevated trade tensions, geopolitical fragmentation and weakening global cooperation continue to generate exceptional uncertainty and weigh on the global economic outlook".
Zawya
07-07-2025
- Business
- Zawya
Congo gets $262mln from IMF on treasury reforms
The Democratic Republic of Congo (DRC) has received the second instalment of a $1.7 billion loan from the International Monetary Fund (IMF) under the Extended Credit Facility, totalling $261.9 million. This is the result of progress on financial reforms. This followed Kinshasa meeting some of the deal's key requirements, including implementing a Treasury Single Account (TSA). On Wednesday, the IMF executive board completed the first review of DRC's performance under the programme, unlocking an immediate disbursement. This brings total disbursements under the 38-month programme to $523.4 million, including the $261.5 million released when the facility was approved earlier this year. The funds –equivalent to 190.4 million Special Drawing Rights (SDRs), a basket of foreign currencies—will support DRC's balance of payments, bolster foreign exchange reserves, and strengthen its ability to engage in international trade. The board, chaired by IMF deputy managing director Kenji Okamura, noted that aside from a few missed structural benchmarks, DRC met all the quantitative performance criteria set for the first review period. A key reform under the programme was the rollout of a Treasury Single Account, aimed at consolidating thousands of government-linked accounts into one, to enhance transparency and curb corruption. To facilitate this, the IMF asked Kinshasa to phase the TSA, starting with stress tests to assess potential impacts on local banks and to invest in software upgrades at the Central Bank of Congo (BCC). A steering committee was established in January to spearhead the reforms, and the IMF noted that the DRC government is making 'concomitant progress' on its implementation. The push for a TSA is also intended to support revenue mobilisation by eliminating parallel tax collections outside official accounts. Although Congo began working on the reform in May 2023, progress was limited until the ECF programme was launched this year.'Performance under the programme was mixed, as the intensification of the conflict has placed significant strains on the budget,' the IMF said in a dispatch after the board meeting. Among the missed targets was the commitment to keep the fiscal deficit below 0.3 percent of GDP, which was overshot to 0.8 percent due to increased security spending in response to escalating conflict in eastern DRC. The government also missed the target for BCC's foreign exchange assets held with local correspondents, attributed to higher-than-expected tax payments in foreign currency on government accounts. The board approved waivers for these missed targets, allowing the disbursement to proceed. Mr Okamura noted that the recent peace agreement signed between DRC and Rwanda in Washington could improve the outlook, with the possibility of missed targets being met by 2026.'The authorities have committed to accompany these efforts to preserve macroeconomic stability with an acceleration of structural reforms in key areas, including strengthening the AML/CFT framework, improving the business climate, enhancing transparency and governance, combating corruption and upgrading national statistics,' he said. TSA implementation is not unique to DRC. Other countries in the region, including Kenya, Uganda and Tanzania, have been required to adopt similar reforms under their IMF programmes. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
04-07-2025
- Business
- Arab News
Pakistan to use $1.4 billion IMF climate loan to expand green investment, fiscal space
KARACHI: Pakistan will use a $1.4 billion loan from the International Monetary Fund's climate resilience fund to expand fiscal space, embed climate planning into public investment decisions and unlock private-sector capital for green projects, the IMF said on Friday. The financing, approved by the IMF's Executive Board in May under its Resilience and Sustainability Facility (RSF), is part of a broader reform program that aims to help Pakistan adapt to increasingly frequent and devastating climate shocks. Pakistan is the first country in the Middle East and Central Asia region to access the IMF's Resilience and Sustainability Facility. The fund was launched in 2022 to help climate-vulnerable low- and middle-income countries make the structural changes needed to protect their economies and populations. 'The RSF will help build climate resilience in Pakistan by creating fiscal space to address climate vulnerabilities, such as the need to improve climate-resilient adaptation infrastructure,' Mahir Binici, the IMF's resident representative in Pakistan, told Arab News in a written response. 'It will also boost climate's prominence in public investment management and budget processes,' he said, 'helping Pakistan better identify and target projects needed to strengthen resilience to climate shocks.' A third pillar of the reforms, Binici said, is improving the overall 'enabling environment for green investment' so that banks and private firms could incorporate climate-related risk considerations into their risk management and investment activities. The RSF financing will be disbursed over a 28-month period and runs alongside Pakistan's $7 billion Extended Fund Facility (EFF), whose first review was also approved in May, releasing roughly $1 billion in immediate support. CLIMATE-FINANCE GAP Pakistan, one of the world's most climate-vulnerable countries, has long struggled to align its public finances with the scale of climate risk it faces. The 2022 floods alone affected over 33 million people and caused more than $30 billion in damages and economic losses. By reforming how climate priorities are reflected in budget planning and investment screening, the IMF says Pakistan will be better equipped to attract funding and respond to future disasters. The RSF does not fund individual infrastructure projects. Instead, it supports 'policy and institutional reforms that make climate action more effective,' Binici explained. These include reforms in disaster coordination, water and irrigation infrastructure, and provincial implementation capacity. Binici said the IMF program supports better coordination between the federal and provincial governments on disaster risk financing, a chronic weakness in past emergency responses, and policy changes that would strengthen water and irrigation management. 'Policy reforms that directly target Pakistan's water management and irrigation infrastructure would help make farmers more resilient to climate shocks,' he said, adding the focus would be on improving irrigation service standards, reliability, and water supply adequacy. The reforms also aim to reduce waterlogging, salinity, groundwater depletion, and growing water insecurity, issues that disproportionately impact poor rural communities. The IMF said its climate program in Pakistan takes a 'whole-of-government' approach, with many reforms to be implemented at the provincial level. 'Much of the focus is on improving coordination mechanisms between the federal government and the provinces,' Binici said.
Business Insider
28-06-2025
- Business
- Business Insider
Tanzania's policy reforms unlock $448.4 million IMF support package
The International Monetary Fund (IMF) has approved a total disbursement of about $448.4 million to Tanzania following the completion of reviews under two key lending arrangements, in recognition of the country's continued economic improvement and reform progress. The IMF approved a $448.4 million disbursement to Tanzania under key lending arrangements due to economic improvements. Tanzania's economic indicators show positive trends, including a GDP growth rate projected to reach 6.0% in 2025. Tanzania's achievements under the ECF and RSF included meeting all quantitative criteria and most structural benchmarks. The $448.4 million disbursement follows the successful completion of reviews under two key lending programmes and signals the IMF's confidence in Tanzania's macroeconomic policies and ongoing structural reforms. The IMF Executive Board on Friday concluded the 2025 Article IV consultation and completed the fifth review under the Extended Credit Facility (ECF) arrangement, as well as the second review under the Resilience and Sustainability Facility (RSF). The move allows for an immediate disbursement of about $448.4 million (SDR 326.47 million) to Tanzania under both arrangements. The completion of the fifth review under the ECF enables the release of $155.7 million (SDR 113.37 million), representing 28.5% of the country's IMF quota. This brings Tanzania's total access under the ECF arrangement to approximately $908.3 million. Under the RSF, the completed second review unlocks $292.7 million (SDR 213.1 million), equivalent to 53.5% of quota, raising total access under this facility to around $345.4 million. The IMF said Tanzania's macroeconomic indicators have continued to improve. Real GDP growth reached 5.5% in 2024 and is projected to rise to 6.0% in 2025. Medium-term growth is forecast at 6.5%, contingent on sustained reform implementation. Inflation remained steady at 3.2% year-on-year in April 2025, staying below the central bank's target. The current account deficit narrowed to 2.6% of GDP in 2024, down from 3.8% the previous year, supported by a robust export performance. The IMF also noted that the authorities maintained a neutral or mildly stimulative monetary policy stance, alongside increased exchange rate flexibility. Tanzania's banking sector remains resilient, although the Fund warned that some vulnerabilities persist. The fiscal balance weakened markedly in the third quarter of the 2024/25 fiscal year, prompting the government to delay lower-priority spending in the final quarter. Continued reform commitment and risk outlook All quantitative performance criteria and indicative targets for end-December 2024 under the ECF and RSF were met. While two of three structural benchmarks for end-March 2025 were implemented, albeit with delays, the implementation of the Secured Transaction Act remains pending and has now been rescheduled for end-February 2026. Looking ahead, the IMF warned that while economic conditions are expected to remain favorable, risks are tilted to the downside. The Tanzanian authorities reaffirmed their commitment to reforms aimed at maintaining macro-financial stability, promoting inclusive and sustainable growth, advancing structural changes, and addressing climate-related challenges.
