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AFP
3 days ago
- Business
- AFP
Posts falsely claim Nigeria was 'debt-free' after settling IMF loans
'BREAKING NEWS!!! Good news- Nigeria is finally debt-free,' read the caption of a Facebook post published on May 16, 2025. Image Screenshot showing the false post, taken June 2, 2025 Nigerian President Bola Tinubu was pictured in the post alongside text that read, 'Nigeria is finally debt-free after paying $3.4 billion to the IMF'. In a statement to local newspapers on May 8, 2025, the IMF confirmed that Nigeria has fully repaid the $3.4 billion loan obtained under the so-called Rapid Financing Instrument to cushion the economic impact of the Covid-19 pandemic — later corroborated by the Nigerian government (archived here and here). An identical claim was shared hundreds of times on Facebook, including in Ghana and Pakistan. However, the settling of the IMF loan does not mean Nigeria is debt-free. Unpaid borrowings AFP Fact Check searched the DMO's website where Nigeria's public debt is disclosed and found that as of December 31, 2024, the nation had outstanding loans of more than $46 billion, excluding the $3.4 billion repaid to the IMF. According to a factsheet published by the DMO on April 4, 2025, the unpaid debt is held by 'multilateral, bilateral, and commercial' creditors. So-called multilaterals constitute the largest share with a total of $22.32 billion, just under half the total external debt (archived here). Key multilateral lenders include the World Bank Group – with the International Development Association (IDA) accounting for $16.56 billion and the International Bank for Reconstruction and Development (IBRD) $1.24 billion – and the African Development Bank Group, which collectively holds over $3 billion in Nigerian debt. Bilateral debts amount to $6.09 billion (13.30 percent of the total), with China's Exim Bank owed $5.06 billion. Other bilateral lenders include France's Agence Française de Développement, Japan's JICA, India's Exim Bank, and Germany's KfW. Commercial debt stands at $17.32 billion (37.83%), primarily from Eurobonds. Additionally, syndicated loans from institutions like Deutsche Bank AG contribute a smaller portion, totaling $54.87 million (0.12%). Meanwhile, Nigeria's debt pile may balloon should the country's legislature approve Tinubu's fresh $24.14 billion loan proposal. By the end of 2026, the West African nation may be wallowing in roughly $69.92 billion in loan servicing (archived here). AFP Fact Check previously debunked claims about Nigeria's relationship with the IMF here.
Yahoo
3 days ago
- Business
- Yahoo
Posts falsely claim Nigeria was 'debt-free' after settling IMF loans
'BREAKING NEWS!!! Good news- Nigeria is finally debt-free,' read the caption of a Facebook post published on May 16, 2025. Nigerian President Bola Tinubu was pictured in the post alongside text that read, 'Nigeria is finally debt-free after paying $3.4 billion to the IMF'. In a statement to local newspapers on May 8, 2025, the IMF confirmed that Nigeria has fully repaid the $3.4 billion loan obtained under the so-called Rapid Financing Instrument to cushion the economic impact of the Covid-19 pandemic — later corroborated by the Nigerian government (archived here and here). An identical claim was shared hundreds of times on Facebook, including in Ghana and Pakistan. However, the settling of the IMF loan does not mean Nigeria is debt-free. AFP Fact Check searched the DMO's website where Nigeria's public debt is disclosed and found that as of December 31, 2024, the nation had outstanding loans of more than $46 billion, excluding the $3.4 billion repaid to the IMF. According to a factsheet published by the DMO on April 4, 2025, the unpaid debt is held by 'multilateral, bilateral, and commercial' creditors. So-called multilaterals constitute the largest share with a total of $22.32 billion, just under half the total external debt (archived here). Key multilateral lenders include the World Bank Group – with the International Development Association (IDA) accounting for $16.56 billion and the International Bank for Reconstruction and Development (IBRD) $1.24 billion – and the African Development Bank Group, which collectively holds over $3 billion in Nigerian debt. Bilateral debts amount to $6.09 billion (13.30 percent of the total), with China's Exim Bank owed $5.06 billion. Other bilateral lenders include France's Agence Française de Développement, Japan's JICA, India's Exim Bank, and Germany's KfW. Commercial debt stands at $17.32 billion (37.83%), primarily from Eurobonds. Additionally, syndicated loans from institutions like Deutsche Bank AG contribute a smaller portion, totaling $54.87 million (0.12%). Meanwhile, Nigeria's debt pile may balloon should the country's legislature approve Tinubu's fresh $24.14 billion loan proposal. By the end of 2026, the West African nation may be wallowing in roughly $69.92 billion in loan servicing (archived here). AFP Fact Check previously debunked claims about Nigeria's relationship with the IMF here.
Egypt Independent
22-05-2025
- Business
- Egypt Independent
Current IMF Program will be Egypt's last loan, Prime Minister declares
Prime Minister Mostafa Madbouly announced that Egypt will not require a new program from the International Monetary Fund (IMF) beyond its current arrangement, anticipating that the existing program will be the nation's final loan from the global fund by 2026 or 2027. During the government's weekly press conference, Madbouly said that the IMF imposes no conditions on Egypt but rather serves as a 'certificate of trust' in the Egyptian economy. He highlighted the government's detailed plan – extending to 2030 – aimed at achieving economic independence, with a strong focus on bolstering the private sector's role and ensuring sustainable economic growth. Regarding recent economic performance, Madbouly highlighted several positive trends: the Egyptian economy achieved a solid 3.9 percent real growth rate during the first half of the 2024/2025 fiscal year. Inflation has seen a significant decline, reaching 13.9 percent in April 2025, a notable reduction from 37 percent just a year prior. Furthermore, the budget deficit narrowed to 6.5 percent. Madbouly also noted a 17 percent surge in foreign direct investments and a robust 33 percent increase in non-petroleum exports over the initial nine months of 2024. The unemployment rate has also dropped to an unprecedented low, falling below seven percent – the lowest in Egypt's recorded history. These improvements, alongside ample foreign currency reserves capable of covering essential needs, including petroleum imports, collectively underscore the nation's strengthened economic stability. A long history with the IMF Egypt's engagement with the International Monetary Fund first began in May 1962, marked by its inaugural loan agreement designed to stabilize the economy. Decades later, in the 1970s, under President Anwar Sadat, Egypt secured a $186 million loan to tackle external payment challenges and inflationary pressures. However, Egypt often did not complete most IMF programs due to stringent conditions, such as devaluing the pound, raising fuel prices, imposing new taxes, and accelerating privatization, all of which raised social concerns. The most significant cooperation program with the IMF commenced in 2016, providing Egypt with a $12 billion loan disbursed in six tranches over three years. This coincided with an economic reform program that included floating the Egyptian pound and reducing subsidies. In 2020, the IMF provided $2.77 billion in emergency aid through its Rapid Financing Instrument to mitigate the repercussions of the COVID-19 pandemic. Subsequently, in December 2022, the Fund approved a new three billion dollar program, which was expanded to eight billion in March 2024 to support the economy amidst challenges of foreign currency shortages and a weakening pound. The current IMF program, slated to run until December 2026, primarily focuses on achieving macroeconomic stability, strengthening the flexible exchange rate, reducing the state's economic footprint, and enhancing the nation's competitiveness.
Egypt Independent
22-05-2025
- Business
- Egypt Independent
No new IMF program for Egypt, Prime Minister declares
Prime Minister Mostafa Madbouly announced that Egypt will not require a new program from the International Monetary Fund (IMF) beyond its current arrangement, anticipating that the existing program will be the nation's final loan from the global fund by 2026 or 2027. During the government's weekly press conference, Madbouly said that the IMF imposes no conditions on Egypt but rather serves as a 'certificate of trust' in the Egyptian economy. He highlighted the government's detailed plan – extending to 2030 – aimed at achieving economic independence, with a strong focus on bolstering the private sector's role and ensuring sustainable economic growth. Regarding recent economic performance, Madbouly highlighted several positive trends: the Egyptian economy achieved a solid 3.9 percent real growth rate during the first half of the 2024/2025 fiscal year. Inflation has seen a significant decline, reaching 13.9 percent in April 2025, a notable reduction from 37 percent just a year prior. Furthermore, the budget deficit narrowed to 6.5 percent. Madbouly also noted a 17 percent surge in foreign direct investments and a robust 33 percent increase in non-petroleum exports over the initial nine months of 2024. The unemployment rate has also dropped to an unprecedented low, falling below seven percent – the lowest in Egypt's recorded history. These improvements, alongside ample foreign currency reserves capable of covering essential needs, including petroleum imports, collectively underscore the nation's strengthened economic stability. A long history with the IMF Egypt's engagement with the International Monetary Fund first began in May 1962, marked by its inaugural loan agreement designed to stabilize the economy. Decades later, in the 1970s, under President Anwar Sadat, Egypt secured a $186 million loan to tackle external payment challenges and inflationary pressures. However, Egypt often did not complete most IMF programs due to stringent conditions, such as devaluing the pound, raising fuel prices, imposing new taxes, and accelerating privatization, all of which raised social concerns. The most significant cooperation program with the IMF commenced in 2016, providing Egypt with a $12 billion loan disbursed in six tranches over three years. This coincided with an economic reform program that included floating the Egyptian pound and reducing subsidies. In 2020, the IMF provided $2.77 billion in emergency aid through its Rapid Financing Instrument to mitigate the repercussions of the COVID-19 pandemic. Subsequently, in December 2022, the Fund approved a new three billion dollar program, which was expanded to eight billion in March 2024 to support the economy amidst challenges of foreign currency shortages and a weakening pound. The current IMF program, slated to run until December 2026, primarily focuses on achieving macroeconomic stability, strengthening the flexible exchange rate, reducing the state's economic footprint, and enhancing the nation's competitiveness.
Business Insider
14-05-2025
- Business
- Business Insider
Top 10 African countries with the highest IMF debt in May 2025
Within the last few weeks, there have been massive developments between West African countries and the International Monetary Fund (IMF). Nigeria and Ghana stand at the forefront of these current developments. Business Insider Africa presents the top 10 African countries with the highest debt to the IMF in April 2025. This list is courtesy of data from the IMF's website. Egypt ranks number 1 on the list. Recent reports indicate that Nigeria has repaid the $3.4 billion emergency loan secured from the International Monetary Fund (IMF) in 2020, with the final installment paid ahead of time on April 30, 2025. This, alongside the fact that Ghana's debt-to-GDP ratio likely fell to 54% in January 2025, down from 61.8% at the end of December 2024. As for Nigeria, the IMF clarified that while Nigeria has made significant progress in settling its financial obligations, reports claiming the country has fully repaid its debts are inaccurate. The global lender noted that a $30 million yearly service charge remains unpaid. Nigeria, Africa's fourth-largest economy, has repaid a $3.4 billion emergency loan borrowed from the International Monetary Fund (IMF) under the Rapid Financing Instrument (RFI), which was used in 2020 to mitigate the economic effects of the COVID-19 pandemic. By its side, neighboring country Ghana, according to Barclays Plc, is improving significantly in its debt position as a result of economic growth and stricter controls on governmental spending following itsrecent debt crisis. In a note to clients, Barclays analysts Michael Kafe and Andreas Kolbe indicated that Ghana's debt-to-GDP ratio is anticipated to fall to 54% in January 2025, down from 61.8% at the end of December 2024. This is a significant success, coming three years ahead of the International Monetary Fund's (IMF) 2028 deadline for the country's $3 billion support plan. While this development is laudable, the country still boasts one of Africa's largest debts to the International Monetary Fund, as is the case with several other African countries. With that said, here are the other 9 African countries with the largest debt to the IMF alongside the West African Gold Coast, according to the IMF's website. Top 10 African countries with the highest IMF debt in May 2025 Rank Country Total IMF Credit Outstanding ($) as of 05/13/2025 1. Egypt 8,206,734,184 2. Kenya 3,022,009,900 3. Angola 2,839,508,338 4. Cote d'Ivoire 2,628,428,440 5. Ghana 2,448,001,000 6. Democratic Republic of Congo 1,789,100,000 7. Ethiopia 1,422,865,000 8. Cameroon 1,182,660,000 9. Senegal 1,019,300,000 10. Tanzania 1,009,260,000
