
<p>LONDON/NEW YORK, May 27 (Reuters)</p>



<p>The International Monetary Fund (IMF) has received $40 billion in pledges for its new Resilience and Sustainability Trust to address challenges such as climate change, IMF head Kristalina Georgieva said on Friday, close to their target set last month.</p>



<p>Building resilience to the effects of climate change will cost trillions of dollars over the next decade, she said in a pre-recorded speech broadcast to the Ibrahim Governance Forum, an Africa-focused conference.</p>



<p>Climate investment globally needs to increase by up to six times from the roughly $640 billion spent in 2020, to keep global temperatures from rising more than 1.5 degrees Celsius above pre-industrial levels, the latest Intergovernmental Panel on Climate Change report said in April.</p>



<p>&#8220;The devastating effects of climate change are robbing Africa of lives and livelihoods,&#8221; Georgieva told the conference, which was scheduled to mark six months until the COP27 climate conference in Cairo.</p>



<p>The IMF launched the new financing facility for low and middle-income countries in April, with the goal of raising at least $45 billion.</p>



<p>Its finance director had said it would need to receive &#8220;a substantial fraction&#8221; of the total before starting operations of the new trust by the time of the meetings of the IMF and World Bank in October.</p>



<p>Georgieva said at the conference that many African countries were dealing with droughts that were increasing food and political insecurity.</p>



<p>&#8220;Now the surge in food, fuel and fertiliser prices have dramatically raised import costs, all in the context of already high sovereign debt and limited fiscal capacity,&#8221; Georgieva said.</p>



<p>&#8220;African countries cannot face these overlapping crises &#8211; climate, food, pandemic &#8211; alone,&#8221; she said, adding that IMF lending to African countries in the last year was 13 times the annual average.</p>



<p><em>Reporting by Rachel Savage and Rodrigo Campos; Editing by John Stonestreet and Edmund Blair</em></p>


IMF story

IMF secures $40 billion so far for new sustainability trust


<p>KEY POINTS</p>



<ul class="wp-block-list"><li>In a blog post ahead of this week’s World Economic Forum, IMF Managing Director Kristalina Georgieva said the global economy faces its “biggest test since the Second World War.”</li><li>In combining the Russia-Ukraine war, the Covid-19 pandemic and the spike in volatility in financial markets and persistent threat from climate change, the IMF said the world faces a “potential confluence of calamities.”</li></ul>



<p>The International Monetary Fund has warned against “geoeconomic fragmentation” as policymakers and business leaders gather at the World Economic Forum in Davos, Switzerland.</p>



<p>In a blog post ahead of this week’s event, IMF Managing Director Kristalina Georgieva said the global economy faces its “biggest test since the Second World War,” with Russia’s invasion of Ukraine compounding the residual economic effects of Covid-19 crisis, dragging down growth and driving inflation to multi-decade highs.</p>



<p>Spiraling food and energy prices are squeezing households around the world, while central banks are tightening monetary policy to rein in inflation, exerting further pressure on indebted nations, companies and families.</p>



<p>When combined with the spike in volatility in financial markets and persistent threat from climate change, the IMF said the world faces a “potential confluence of calamities.”</p>



<p>“Yet our ability to respond is hampered by another consequence of the war in Ukraine—the sharply increased risk of geoeconomic fragmentation,” Georgieva said.</p>



<p>“Tensions over trade, technology standards, and security have been growing for many years, undermining growth—and trust in the current global economic system.”</p>



<p>She added that uncertainty around trade policies alone cut global GDP by almost 1% in 2019, according to IMF research, and the D.C.-based institution’s monitoring also indicates that around 30 countries have restricted trade in food, energy and other key commodities.</p>



<p>Georgieva warned that further disintegration would have enormous global costs, harming people across the socio-economic spectrum, and said technological fragmentation alone could lead to losses of 5% of GDP for many countries.</p>



<p>Carmine Di Sibio, global chairman and CEO of consultancy giant EY, told CNBC on Monday that the economy has “taken center stage” in discussions among big business leaders at Davos.</p>



<p>“The economy is the top conversation – inflation is a big concern and you do see some leading indicators starting to slow,” he said.</p>



<p>Although corporate deal volumes have slowed, Di Sibio said EY was still seeing signs of “pretty robust activity” and business leaders were still looking at options to transform their businesses, with pricing in the sector coming down of late amid resolute demand.</p>



<p>“The transformation that companies are going through – the transformation in terms of technology, in terms of supply chain and location of supply chain, and de-risking of supply chains – that is still going on and we do a lot around that as well,” Di Sibio said.</p>



<h3 class="wp-block-heading" id="h-solutions">Solutions</h3>



<p>In order to address the growing fragmentation, the IMF has firstly called for governments to lower trade barriers to alleviate shortages and reduce the prices of food and other commodities, while diversifying exports to improve economic resilience.</p>



<p>“Not only countries but also companies need to diversify imports—to secure supply chains and preserve the tremendous benefits to business of global integration,” Georgieva said.</p>



<p>“While geostrategic considerations will drive some sourcing decisions, this need not lead to disintegration. Business leaders have an important role to play in this regard.”</p>



<p>Secondly, the IMF urged collaborative efforts to deal with debt, as roughly 60% of low-income countries currently have significant debt vulnerabilities and will need restructuring.</p>



<p>“Without decisive cooperation to ease their burdens, both they and their creditors will be worse off, but a return to debt sustainability will draw new investment and spur inclusive growth,” Georgieva said.</p>



<p>“That is why the Group of Twenty’s Common Framework for Debt Treatment must be improved without delay.”</p>



<p>Thirdly, the IMF called for a modernization of cross-border payments, with inefficient payment systems posing a barrier to inclusive economic growth. The institution estimates that the 6.3% average cost of an international remittance payment means around $45 billion annually is diverted toward intermediaries and away from lower-income households.</p>



<p>“Countries could work together to develop a global public digital platform—a new piece of payment infrastructure with clear rules—so that everyone can send money at minimal cost and maximum speed and safety. It could also connect various forms of money, including central bank digital currencies,” Georgieva said.</p>



<p>Finally, the IMF called for an urgent closing of the “gap between ambition and policy” on climate change, arguing for a comprehensive approach to the green transition that combines carbon pricing and renewable energy investment with compensation for those adversely affected by climate change.</p>


BE2FA7DW6VJP3AYQ5S5CUCMQO4

IMF says global economy faces ‘confluence of calamities’ in biggest test since World War II


<p>May 9 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s executive board on Monday approved a three-year, $456 million extended credit facility arrangement for Mozambique, with about $91 million available for immediate disbursement, the Fund said.</p>



<p>The facility is the southeast African nation&#8217;s first program since the global lender suspended support six years ago.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2VV4W0&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a></p>



<p>The IMF said the three-year arrangement will help support economic recovery and policies to reduce public debt and financing vulnerabilities, while creating space for public investments in human capital, climate adaptation and infrastructure.</p>



<p>The Fund said the program will support a reform agenda centered on establishing a sovereign wealth fund to manage the country&#8217;s liquefied natural gas wealth, mobilizing tax revenue and strengthening public finances.</p>



<p>&#8220;Mozambique has managed the COVID pandemic relatively well, maintaining macroeconomic stability and reform momentum even as the country has weathered a series of shocks, culminating with the effects of the war in Ukraine,&#8221; IMF&nbsp;Deputy&nbsp;Managing&nbsp;Director Bo Li said in a statement. &#8220;With policy space now limited, sustaining the economic recovery underway and tackling debt vulnerabilities are priorities.&#8221;</p>



<p>(Reporting by Rami Ayyub and David Lawder; Editing by Sandra Maler and Christopher Cushing)</p>


IMF board approves $456 mln program for Mozambique

Mozambique records first COVID-19 death

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<p>The International Monetary Fund has maintained the 2021 forecast for Sub-Saharan Africa at 3.4 per cent, with an upgrade for South Africa following a strong positive surprise in the first quarter offset by downward revisions in other countries. The worsening pandemic developments in sub-Saharan Africa are expected to weigh on the region’s recovery. Malhar Nabar, Division Chief for World Economic Studies at the International Monetary Fund for more.</p>


IMF maintains 2021 forecast for sub-Saharan Africa

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<p>Last week, Sudan received approval from the International Monetary Fund for relief on more than $56 billion in debt and new IMF funding of $2.5 billion over three years. The IMF accepted the country into the Highly Indebted Poor Countries initiative based on the country&#8217;s commitment to macroeconomic reforms. Economic Analyst, Buthiana Emam joins CNBC Africa for more.</p>


Sudan: IMF approves debt relief of more than $56bn

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<p>Hundreds of protesters took to the streets in Sudan’s capital Khartoum to demand the government’s resignation over the International Monetary Fund-backed economic reforms. The protests erupted a day after the IMF approved a $2.5 billion loan and debt relief deal that will see Sudan’s external debt reduced by about $50 billion. Activist Hajooj Kuka  joins CNBC Africa for more.</p>


IMF-backed economic reforms spark protests in Sudan

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<p>The Covid-19 pandemic has taken a heavy toll on African economies, and now experts project that the continent risk to reverse gains achieved over the years. The private sector could play an important, but it remains challenging for the continent to mobilize private capital. Catherine Pattillo, Deputy Director of the African Department at the International Monetary Fund joins CNBC Africa for more.</p>


IMF’s Pattillo on how to attract private finance to Africa’s development

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<p>The government of Tanzania has officially applied for more than $570 million loan from the International Monetary Fund to help in tackling economic challenges of the Covid-19 pandemic. The IMF has responded with conditions before the disbursement happens. Economic Analyst, Gabriel Mwang&#8217;onda joins CNBC Africa for more.</p>


IMF puts COVID-19 related condition for Tanzania loan

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<p>The International Monetary Fund says it expects Cote d’Ivoire’s economy to grow about six per cent this year. Meanwhile, the government has issued a decree that seeks to ensure that 20 per cent of cocoa purchased by multinational companies are fulfilled by local companies. Ayalanesh Tafesse, Country Risk Analyst at Rand Merchant Bank joins CNBC Africa to explore how Cote d’Ivoire is working to recover from the Covid-19 pandemic.</p>


Assessing Cote d’Ivoire’s pandemic recovery efforts

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<p>France has announced cancellation of $5 billion debt owed by Sudan and pledged a $1.5 billion bridge loan to help the country pay its arrears to the International Monetary Fund. Other countries and organisations such as the African Development Bank have done the same. Ahmed Soliman, Research Fellow at Chatham House spoke to CNBC Africa’s Julius Bizimungu for more.</p>


Sudan’s debt cancelled by France

Sudan’s debt cancelled by France, AfDB & others

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<p>Rwanda’s economy is expected to rebound to 5.1 per cent in 2021 following a sharp contraction of 3.4 per cent last year due to the Covid-19 pandemic, according to the International Monetary Fund.</p>


Rwanda’s economy expected to rebound to 5.1% in 2021

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<p>The International Monetary Fund says deeper, and more equitable, fiscal effort is needed to address Ghana’s debt vulnerabilities exacerbated by the pandemic.</p>


GHnan

IMF completes 2021 Article IV consultation in Ghana

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<p>Sub-Saharan Africa will be the slowest growing region in 2021, growing at 3.4 per cent compared to the global average of 6 per cent.</p>


IMFp50

IMF: Sub-Saharan Africa to see slowest regional growth in 2021

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<p>On April 2nd, the Executive Board of the International Monetary Fund approved a three year financing package of $2.34 billion to support Kenya&#8217;s next phase of the COVID-19 response.</p>


IMFONNN

IMF approves $2.34bn funding for Kenya

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<p>The Kenya shilling has gained ground against the US dollar over the past few days. This is as forex markets react to sentiments concerning an impending disbursement, in tranches, of the $2.34 billion aid package from the International Monetary Fund (IMF) to Kenya’s coffers. Economic Analyst, Reginald Kadzutu joins CNBC Africa for more.</p>


What’s behind the Kenya shilling’s sharp appreciation?

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<p>The International Monetary Fund has revised Ghana’s growth rate for the year to 4.6 per cent. The revision comes weeks after Ghana raised $3 billion on the international debt market using a 4-year zero-coupon bond. Rand Merchant Bank jointly led the execution of the Eurobond. The bank’s Head for International Debt Markets, Eyitayo Netufo joins CNBC Africa for more.</p>


International Monetary Fund

IMF secures $40 billion so far for new sustainability trust

IMF says global economy faces ‘confluence of calamities’ in biggest test since World War II

IMF board approves $456 mln program for Mozambique

IMF board approves $456 mln program for Mozambique

IMF maintains 2021 forecast for sub-Saharan Africa

Sudan: IMF approves debt relief of more than $56bn

IMF-backed economic reforms spark protests in Sudan

IMF’s Pattillo on how to attract private finance to Africa’s development

IMF puts COVID-19 related condition for Tanzania loan

Assessing Cote d’Ivoire’s pandemic recovery efforts

Sudan’s debt cancelled by France, AfDB & others

Rwanda’s economy expected to rebound to 5.1% in 2021

IMF completes 2021 Article IV consultation in Ghana

IMF: Sub-Saharan Africa to see slowest regional growth in 2021

IMF approves $2.34bn funding for Kenya

What’s behind the Kenya shilling’s sharp appreciation?

Ghana taps into international capital markets to raise $3bn

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International Monetary Fund

IMF secures $40 billion so far for new sustainability trust

IMF says global economy faces ‘confluence of calamities’ in biggest test since World War II

IMF board approves $456 mln program for Mozambique

IMF board approves $456 mln program for Mozambique

IMF maintains 2021 forecast for sub-Saharan Africa

Sudan: IMF approves debt relief of more than $56bn

IMF-backed economic reforms spark protests in Sudan

IMF’s Pattillo on how to attract private finance to Africa’s development

IMF puts COVID-19 related condition for Tanzania loan

Assessing Cote d’Ivoire’s pandemic recovery efforts

Sudan’s debt cancelled by France, AfDB & others

Rwanda’s economy expected to rebound to 5.1% in 2021

IMF completes 2021 Article IV consultation in Ghana

IMF: Sub-Saharan Africa to see slowest regional growth in 2021

IMF approves $2.34bn funding for Kenya

What’s behind the Kenya shilling’s sharp appreciation?

Ghana taps into international capital markets to raise $3bn

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