IMF approves KSh 257 billion global loan to Kenya ▷ Tuko.co.ke
– The loan will help the country to support COVID-19[female[feminine respond to and respond to an urgent need to reduce urgent debt vulnerabilities
– IMF says Kenya’s debt remains sustainable despite being at high risk of debt distress
– Treasury Cabinet Secretary Ukur Yatani said the country approached the IMF amid the global pandemic and asked for its support
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The International Monetary Fund (IMF) has approved a Ksh 257 billion financing plan for Kenya amid the COVID-19 pandemic.
The loan will help the country to support COVID-19 response and respond to an urgent need to reduce urgent debt vulnerabilities.
In a statement, the Washington-based lender said its board of directors approved the 38-month financing plan under the Extended Credit Facility (ECF) and Extended Finance Facility (EFF).
“Kenya was hit hard initially by the Covid-19 pandemic,” the IMF said.
According to the IMF, with a strong policy response, the economy recovered from 2021 after likely registering a slight contraction of 0.1% in 2020.
“Even with this recovery, challenges remain in returning to sustainable and inclusive growth, and past progress in poverty reduction has been reversed,” the statement read in part.
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Kenya’s debt remains sustainable, even though it poses a high risk of debt distress, according to the IMF.
ECF provides financial aid to countries with protracted balance of payments problems.
It was created under the Poverty Reduction and Growth Trust Fund (PRGF) as part of a broader reform aimed at making IMF financial support more flexible and better suited to the diverse needs of developing countries. low income, including in times of crisis.
For its part, the EFF is extended to a country facing serious medium-term balance of payments problems due to structural weaknesses that need time to be addressed.
Loans under an extended agreement have a longer repayment period and are mainly used to help countries implement structural reforms in the medium term.
Treasury cabinet secretary Ukur Yatani said it was the country that approached the IMF amid the global pandemic and asked for support to deal with budget deficits.
“The three-year financing plan will support the next phase of the authorities’ COVID-19 response and their plan to reduce debt vulnerabilities while preserving resources to protect vulnerable groups,” the IMF said in a statement.
“Public health facilities have 16% of the gas they need,” Kagwe said.
He further indicated that while the state had 73 oxygen plants across the country, some of them produced gas with concentration levels that were “significantly different” from the government’s own standards.
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