Tag Archives: International Monetary Fund

Italy will seek African debt relief during the G20-diplomat presidency | Instant News


ROME, November 20 (Reuters) – Italy will use its upcoming presidency of the Group of 20 major global economies to try to secure further debt relief for African countries, a senior Italian diplomat said on Friday.

Italy takes over the G20’s annual rotating presidency on December 1 and will build on a deal reached by major international creditors in April aimed at easing debt repayments for the world’s poorest countries.

“Any subsequent steps, because of the diversity of the G20 membership, will not be easy, but we will work to achieve good results,” said Pietro Benassi, diplomatic adviser to Prime Minister Giuseppe Conte.

Benassi, who is helping shape Italy’s G20 agenda, said at the conference that “outreach to Africa” ​​would be one of the priorities. “Debt relief must represent one of the outcomes of the G20 and we will do our best to get it,” he said.

Policymakers, analysts and investors have warned that African countries face a looming debt crisis and will need more long-term assistance than the latest G20 debt plans offer.

About 40% of sub-Saharan African nations are at or are at risk of experiencing debt difficulties even before this year, while Zambia became the continent’s first pandemic-era default last Friday. (Reporting by Crispian Balmer; Editing by Giles Elgood)

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Bank, China should join the debt freeze for the poorest countries – Germany | Instant News


BERLIN, Oct 16 (Reuters) – Commercial banks, investment funds and China must join a debt moratorium for the world’s poorest countries, German Development Minister Gerd Mueller told Reuters on the occasion of the World Bank’s annual fall meeting.

Financial leaders from the major G-20 economies on Wednesday extended their Debt Service Suspension Initiative (DSSI) to help the world’s poorest countries cope with the impact of the COVID-19 crisis into the middle of next year.

“The extension of the current moratorium planned by the G20 to the middle of next year is important, but far from sufficient,” Mueller said, adding that the coronavirus crisis has hit poor countries the worst and will not end in one year.

“Therefore, investment funds and private banks must also participate, not continue to generate high returns and payments. Chinese lenders must also participate, “he added.

IMF Managing Director Kristalina Georgieva said last week African countries alone face a financing gap of $ 345 billion through 2023 to deal with the pandemic and its economic impact.

Developing countries have been working hard on extending the debt freeze, but said further steps are needed to help middle-income countries that are not currently eligible for the G20 initiative.

Reporting by Andreas Rinke Written by Paul Carrel Editing by Caroline Copley

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In the G20, Germany promised 3 billion euros for poor countries | Instant News


BERLIN (Reuters) – Germany pledged 3 billion euros ($ 3.4 billion) at a meeting of G20 finance ministers to help the poorest countries in the world, the finance ministry said on Saturday.

The funds will be available as long-term loans for Poverty Reduction and Growth Growth (PRGT) International Monetary Fund.

In April, IMF officials said they had received a combined $ 11.7 billion pledges from Australia, Japan, Canada, France and Britain to replenish PRGT. The United States has not promised money for this program.

“With funds … low income countries can receive large discounts on loans and bridge liquidity bottlenecks,” the German finance ministry said.

He added that Germany would provide a total of 8.7 billion euros for international assistance measures in 2020 and 2021.

Reporting by Christian Kraemer and Andrea Shalal; Writing by Tom Sims; Editing by Kevin Liffey and Hugh Lawson

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Coronavirus: More than 300 lawmakers urged the IMF, World Bank to cancel the debt of poor countries – National | Instant News


More than 300 lawmakers from around the world on Wednesday urged the International Monetary Fund and the World Bank to cancel the debt of the poorest countries in response to the coronavirus pandemic, and to increase funding to prevent the global economic crisis.

This initiative, led by former US presidential nominee Senator Bernie Sanders and Representative Ilham Omar, a Democrat from Minnesota, comes amid growing concern that developing countries and developing countries will be devastated by a pandemic.

The virus has infected more than 4.2 million people worldwide and killed 287,349, according to a Reuters count.

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Widespread deaths aimed at tackling the virus have had many impacts on the global economy, and especially poor countries with weak health systems, high levels of debt and few resources to manage health crises and multiple economic crises.

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IMF Managing Director Kristalina Georgieva said on Tuesday the IMF was “very likely” to revise its estimates that global output would shrink by 3% by 2020, and said developing countries would need more than $ 2.5 trillion in funding to cope with storms.

Sanders said poor countries need every penny to care for their people, instead of serving the “unsustainable debt” they owe to large international financial institutions.










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Coronavirus Outbreak: WHO says it works with all countries ‘together regardless of their size and economy’

Canceling the debt of the poorest countries is “at least what the World Bank, the IMF and other international financial institutions must do to prevent increased poverty, hunger and unimaginable diseases that threaten hundreds of millions of people,” he said.

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MPs welcomed the IMF’s move to cover debt service payments for the 25 poorest countries for six months, but said further efforts were needed.

The World Bank said it would look for ways to expand its support for the poorest countries, but warned that eliminating debt payments could jeopardize its credit rating and undermine its ability to provide low-cost funding to members.

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In the letter, lawmakers from two dozen countries on six continents said the debt obligations of the poorest countries must be canceled directly, not just deferred, as agreed by the Group of 20 countries in April.

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Failing to do so means that these countries will not be able to prioritize the expenditure required to fight the virus, which in turn can cause ongoing disruptions to global supply chains and financial markets, they wrote.

MPs also urged IMF Georgieva and World Bank President David Malpass to support the creation of trillions of dollars of new Special Drawing Rights, the IMF currency.










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“The issuance of SDRs in the order of trillions of dollars will be needed to prevent a huge increase in poverty, hunger and disease,” wrote the MP, who reached out to various political affiliations and included former heads of state.

The SDR allocation is similar to a central bank “printing” new money and does not trigger huge costs, but has been opposed by the United States, the IMF’s largest shareholder.

Omar said the United States must lead efforts to provide assistance to the most vulnerable countries.

“All our fates are connected. If we close our eyes to the suffering of people abroad, it will ultimately harm us, “Omar said.

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Other signers include former British Labor Party leader Jeremy Corbyn and Argentine MP Carlos Menem, who imposed austerity measures when he served as president in the 1980s and 1990s.

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Canadian development minister Karina Gould said the federal government is pushing the IMF and World Bank to cancel debt to African countries.

(Reporting by Andrea Shalal; Editing by Lincoln Feast.)

—With files from Canadian Press and Global News

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Pakistan defends an investigation into alleged mistakes in the private electricity sector | Instant News


ISLAMABAD, May 5 (Reuters) – Pakistan on Tuesday postponed for two months an investigation into alleged breach of contract by an independent electricity producer that might have cost billions of dollars from the national treasury.

Swayed by energy shortages for decades, the Pakistani government has successively pursued private sector investment in electricity production, offering favorable returns supported by sovereign guarantees.

Prime Minister Imran Khan’s government ordered the end of last month an investigation into the IPP contract after he was presented with a 278-page report by a government committee outlining a number of alleged violations.

However, a cabinet meeting chaired by Khan on Tuesday decided to postpone the examination. “To provide meaningful negotiation opportunities with the IPP, the inquiry commission … can be postponed for two months,” the minutes of the meeting were seen by Reuters.

Information Minister Shibli Faraz said the decision was taken because of the government’s focus on measures to combat COVID-19. “We will not leave it unattended,” he said at a press conference in Islamabad.

Around 40 independent electricity producers operate in Pakistan. Company representatives consistently reject accusations of wrongdoing.

Khan also ordered the report, which accused IPPs of making billions of dollars in questionable agreements, to be published. It will also be held for another two months.

Several of Khan’s ruling cabinet ministers have stakes in the private electricity sector business.

The government had previously said incentives, including dollar indexation and guaranteed capacity payments, were needed to attract investors who did not want to put money into Pakistan’s uncertain economy.

Until 2017, prolonged power outages hit the country’s industrial production.

Pakistan’s energy ministry recently held a session with IPP after some contents of the report leaked to the media, to look for “their contribution in tariff rationalization”.

Pakistan now has enough energy, but is very dependent on the private electricity sector.

Writing by Asif Shahzad; Editing by Emelia Sithole-Matarise

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