Displaying items by tag: IMF

Kenya has officially requested the International Monetary Fund (IMF) to conduct a comprehensive review of its corruption and governance challenges. Cabinet secretary Musalia Mudavadi said that this will help the government address corruption, a persistent issue negatively impacting the economy and the livelihoods of Kenyans. President William Ruto, who has been facing pressure from widespread protests over high living costs, pledged in July to amend laws aimed at closing loopholes which enable corruption. He wants to focus on holding corrupt officials accountable, reducing government wastage, and curbing opulence among leaders. The IMF's review, which will encompass all government ministries and institutions, aligns with its previous calls for Kenya to address these challenges. Kenya hopes this effort will also secure delayed financial assistance from the IMF, crucial for its 2024/2025 budget.

On 15 November, Pakistan reached an agreement with the International Monetary Fund (IMF) for the release of a $700 million tranche, part of a larger $3 billion bailout package agreed in July. This announcement constitutes a significant relief for the struggling economy, as Pakistan is facing a severe balance of payments crisis and dwindling foreign exchange reserves. The leader of the IMF team noted several causes for encouragement; he said that inflation is expected to decline over the coming months amid receding supply constraints and modest demand, together with aid from international partners, leading to improved economic confidence. However, he warned that Pakistan remains vulnerable to global risks like geopolitical tensions, commodity price fluctuations, and tightening global financial conditions. This agreement comes as Pakistan prepares for general elections in February 2024 and aims to stabilise its economy, which has been in free fall for years, leading to rampant inflation and widespread financial hardship.

The International Monetary Fund (IMF) says Britain is the only G7 economy forecast to shrink in 2023 due to higher energy prices, rising mortgage costs and increased taxes. England and Wales have had the most company insolvencies since 2009, UK mortgage approvals have tumbled, and grocery price inflation is a record 16.7%. Britain is the only advanced economy expected to fall into recession this year. The IMF said 2023 would be ‘quite challenging’ for the UK as it slipped from top to bottom of the G7 league table. We can pray for God to strengthen Jeremy Hunt’s mind and spirit as this news puts more pressure on him to balance Britain’s books successfully. Pray also for God to anoint him with heaven's wisdom in preparing strategies for the spring budget as the Bank of England continues to raise interest rates.

The Chancellor’s biggest tax package in fifty years has sparked fears within businesses and banking. Also, in an unusually outspoken statement, the IMF (which works to stabilise the global economy, and also funds countries in need of economic rescue) has openly criticised the tax cuts plans, warning that they will likely fuel the cost-of-living crisis by increasing inequality and pushing up prices. While the Government said the measures will kickstart economic growth, markets are raising alarms, plunging the pound to a record low of $1.03 on 26 September. Christians Against Poverty (CAP) says the government's 'short term' economic policy will tip millions more into poverty, and former Bank of England governor Mark Carney accused the Government of ‘undercutting’ key economic institutions. The bank will now buy £65bn government bonds to try to protect pensions. 

Sri Lanka is in talks with the International Monetary Fund about a bailout package. IMF officials will visit them this month. The country’s economic meltdown triggered protests, and President Rajapaksa fled the country. Now the former president will return. International Media Ministries (IMM) partner with believers and churches in Sri Lanka and are working to help the country and the church to live regular lives in the midst of upheaval. They are developing Gospel media resources to expand the vision of what Christianity is and spread the Gospel using the ‘Open the Gospels’ project. They also want to put the ‘Heritage’ project into languages that are regionally important. IMM are requesting prayer for God to strengthen and encourage the Sri Lankan Christian community. Pray that IMM partners can access daily life essentials like food and clean water. They are saying, ‘God hasn’t left us; we have hope.’

Coronavirus has soared in Latin America recently: the worst in Brazil, followed by Chile and Ecuador where bodies lie in the streets. Beyond the public health toll, the economic impact could be catastrophic. Lockdowns and social distancing risk triggering the worst recession in fifty years. Fourteen Latin American and Caribbean countries have asked the IMF for financial lifelines, totalling $4.48 billion. Even before coronavirus, many of their economies were suffering from low oil prices, with some countries almost in outright recession. 80 emerging economies have so far requested financial relief from the $1 trillion earmarked by the IMF for relief.

A new report from the IMF at its spring meeting shows that curbing corruption would deliver an additional US$1 trillion in tax revenues annually across the world; money that could support much-needed investments in health, education and infrastructure. In this season of trade-war fears, threats of economic shocks and warnings of a global economic slowdown, the IMF signalled a clear ambition to take a lead on tackling corruption. Reports for over sixty member countries mention that money-laundering and bribery have more than doubled. Mentions of the term ‘corruption’ increased by over 220%. Transparency International’s report on the IMF stated, ‘It is not enough just to mention corruption. What we would like to see is the IMF also making specific, actionable, and time-bound recommendations to tackle corruption.’

Pakistan plans to seek its largest ever bailout from the IMF as Imran Khan takes office. The loan is to resolve the country’s escalating foreign reserves crisis. However a loan would see IMF impose restrictions on public spending, making it difficult for Khan to fulfil election promises. One government adviser said, ‘We can’t do without the IMF’s support of a $10bn -12bn loan.’ During the election campaign, Mr Khan pledged to spend public money on access to healthcare for all, upgrading schools and expanding the social safety net. Analysts warned these promises would be hard to fulfil, given the reality of Pakistan’s economic situation. 35% live in poverty and Islamabad has kept going with loans from Chinese commercial banks and allowing the rupee to depreciate 20%. Meanwhile, substance abuse is rampant and terrorists have a safe haven there. This is one of the most dangerous countries in the world to be a Christian.