According to an announcement made by the fund on Tuesday, the board of directors of the International Monetary Fund (IMF) has granted permission for the transfer of $447.39 million to Kenya. The fund said in a statement that efforts toward fiscal consolidation had caused Kenya’s public debt to “level off,” and it added that it had supplied additional money under an existing facility. The statement was issued after the fund announced that it had given the additional money.
In April of the previous year, the International Monetary Fund (IMF) and the East African nation came to an agreement on a financing arrangement that would endure for a total of 38 months. This agreement was made possible by the IMF’s extended fund facility and extended credit facility. Because of the most recent payment, the total amount is now $1.65 billion.
The International Monetary Fund estimates that the current deal will result in a total payment to Kenya of $2.41 billion. In order to pay expenses for external financing “due to the drought and challenging global financial conditions,” the parties reached an agreement on the hike at the meeting that took place a month ago.
The new president of Kenya, William Ruto, who took office in September, has stated his intention to reduce the financial strain that debt servicing places on the country’s revenue by moving away from expensive commercial borrowing and toward less expensive sources such as the World Bank. Ken Ofori-Atta, Ghana’s Minister of Finance, says this is because the International Monetary Fund (IMF) said it would give Ghana $3 billion by the start of the first quarter of 2023.
According to the Minister, the medium-term macroeconomic framework, structural reforms, and key budgetary measures included in the 2023 budget are all in line with the program that is supported by the International Monetary Fund (IMF). Ghana was able to get a staff-level agreement on economic policies and reforms, which will be supported by a three-year arrangement under the Extended Credit Facility.