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Business Insider
an hour 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
Express Tribune
4 hours ago
- Business
- Express Tribune
Tariffs aren't answer to imbalances: IMF
Listen to article Global current account balances widened sharply in 2024, reversing a narrowing under way since the global financial crisis of 2008-2009, the International Monetary Fund (IMF) said on Tuesday, warning that tariffs were not the answer. In its annual External Sector Report, which assesses imbalances in the 30 largest economies, the IMF noted that external surpluses or deficits were not necessarily a problem but could cause risks if they became excessive. It said prolonged domestic imbalances, continued fiscal policy uncertainty, and escalating trade tensions could deteriorate global risk sentiment and elevate financial stress, hurting both debtor and creditor nations. The report took aim at US President Donald Trump's imposition of higher import tariffs against nearly every trading partner, which his administration says is aimed at increasing revenues and righting longstanding trade deficits. "A further escalation of the trade war would have significant macroeconomic effects," it said, noting that higher tariffs would reduce global demand in the short term and add to inflationary pressures through rising import prices. Rising geopolitical tensions could also trigger shifts in the international monetary system (IMS), which in turn could undermine financial stability, it said. This year's report, based on 2024 data, showed the widening of global current account balances was due largely to increased excess balances in the world's three largest economies – the US, China and the euro area.
West Australian
4 hours ago
- Business
- West Australian
Aussies set to cop $75k income hit as mining gravy train ends and living standards plateau: Westpac
Mining delivered more than 50 per cent of the gains in Australian living standards over the two decades to 2020, according to Westpac, but the big four bank warns the gravy train is coming to an end. Analysis from Westpac senior economist Pat Bustamante has found weak net export growth and stalled mining investment is set to cost the average Australian $75,000 of income over the next decade. 'The mining industry accounts for less than 2 per cent of total employment or hours worked, and less than 15 percent of total output, across the Australian economy,' Mr Bustamante said. 'Yet, in the two decades to 2020, the mining industry delivered almost 55 per cent of the growth in our living standards.' Mr Bustamante said the contribution mining made to Australia's living standards was predominantly driven by higher export prices for key commodities, like iron ore, and an investment boom to bring massive projects online. 'Indeed, a large reason why the Federal government and the mining states have been able to provide cost of living support, and increase the scope of public services, without becoming heavily indebted is because of the windfalls provided by the mining industry,' he said. But the Westpac economist said mining investment has 'stalled' post the Global Financial Crisis of 2008 and strong commodity price growth was unlikely to continue. 'The economic landscape going forward will be very different. The dividend from higher commodity prices is likely to be a thing of the past as key commodity export prices ease,' Mr Bustamante. 'We have iron ore falling from around US$103 per tonne today to US$84/t over the March quarter 2027, for example.' Australia derives the bulk of its mineral wealth from iron ore, with more than $100 billion of export income produced each year. Local and international banks have been bearish about the long-term outlook of iron ore as China's steel demand peaks and new supply sources begin to emerge in Africa. Mr Bustamante said Australian living standards are projected to move sideways between 2022 and 2030, which would be 'the longest period (of no growth) on record'. 'Compared to the scenario where per capita living standards grows at the 40-year average rate of around 2.0 per a year, income will be around $75,000 lower per capita over the next decade in today's dollars compared to the status quo — that's around $300,000 for a household of four,' he said. 'The good news is that it does not have to be this way. Faster productivity growth can be an offset. Opportunities are emerging and we need to be well equipped to exploit these.' Mr Bustamante pointed to artificial intelligence as a potential opportunity, but implied more would need to be done to bridge the gap. 'The International Monetary Fund recently estimated that in nations that are well positioned to benefit from AI, its widespread adoption could boost productivity growth by 0.9 to 1.5 percentage points a year.' The Westpac research comes as Federal Treasurer Jim Chalmers prepares to host a three-day policy summit next month centred around productivity. The Business of Council of Australia is leading a cohort of 28 businesses and industry groups at the economic roundtable.
Time of India
5 hours ago
- Business
- Time of India
IMF urges India to ease import curbs, liberalise FDI norms to maintain external balance
Advt India needs to reduce import restrictions, especially on intermediate goods, enhance the business environment to boost private investment, liberalise the foreign direct investment (FDI) regime and expand trade networks to sustain a healthy external balance, the International Monetary Fund (IMF) said in a report released suggested cautious implementation of industrial policies, minimisation of trade and investment distortions and maintenance of exchange rate flexibility to absorb shocks, with intervention used only during market external sector in FY25 was stronger than expected, driven by strong services exports and lower oil prices. However, risks remain with continued trade and capital account restrictions limiting export and import growth, according to the IMF's External Sector current account deficit (CAD) rose to 0.8 per cent of gross domestic product (GDP) in FY25 from 0.7 per cent of GDP in FY24, due to rising import demand amid strong services exports. It is projected to reach 0.9 per cent in FY26, "reflecting resilient domestic demand and a slowdown in external demand", the report the medium term, it is estimated to widen to around 2 per cent of GDP, aligning with India's development needs, it report analysed 30 economies based on external sector data as of May 27, 2025 and IMF staff projections in the April 2025 World Economic the first half of 2024, a contained CAD and portfolio inflows strengthened the rupee, but this reversed in the second half due to equity outflows and global uncertainty.
New Straits Times
7 hours ago
- Business
- New Straits Times
Malaysia's financial fundamentals draw IMF praise
KUALA LUMPUR: Malaysia's financial strength and market flexibility support resilience against external shocks and capital outflows, according to the International Monetary Fund (IMF). These factors, including Malaysia's strong balance sheet, position the country well to navigate global financial volatility without major disruption, the IMF stated in its 2025 External Sector Report, released in Washington on Monday. The IMF said that Malaysia's net international investment position (NIIP) is expected to increase over the medium term, supported by projected current account surpluses. "Malaysia's NIIP has averaged about 2.6 per cent of gross domestic product (GDP) over the last decade, increasing to 5.4 per cent at the end of 2023, supported by strong current account surpluses during the pandemic that helped increase reserve assets," said IMF. It highlighted that the NIIP then declined to -0.6 per cent of GDP at the end of last year because of an increase in direct and portfolio investment liabilities. At the same time, total external debt increased to 69.7 per cent of GDP at the end of 2024, compared to 68 per cent at the end of 2023, and remains manageable. One-third of the external debt is denominated in ringgit, which means it is not subject to valuation risks, the IMF noted. Additionally, short-term external debt, making up 42.8 per cent of the total external debt, is considered manageable. The IMF said this is primarily because most of it consists of intragroup borrowing among banks and corporations — an arrangement that tends to be stable — or trade credits that are backed by export earnings. It emphasised that Malaysia's external position in 2024 was assessed to be moderately stronger than the level implied by medium-term fundamentals and desirable policies. After falling in 2023 amid a challenging external environment, the country's current account surplus fell slightly in 2024, as higher intermediate and capital goods imports outweighed higher exports due to an upturn in the global semiconductor cycle, it added. "Over the medium term, the current account surplus is projected to increase slightly as the services balance benefits from a continuing recovery in tourism," the IMF said. The global organisation also outlines potential policy responses by Malaysia, which, among others, in the near term, preserve exchange rate flexibility to facilitate external adjustments that are driven by fundamentals. Over the medium term, IMF said policies to strengthen social safety nets and public health care could be implemented, including through a reorientation of fiscal spending, to reduce precautionary household savings and shift toward private consumption. This year's report by IMF provides the external sector assessment of 30 of the world's largest economies on the basis of their 2024 data. This assessment constitutes a key part of the IMF's mandate to encourage the balanced expansion of trade and economic growth and promote international monetary cooperation. The individual economy assessments use a wide range of methods to form an integrated and multilaterally consistent view of economies' external sector position
