The IMF is becoming more cautious about who to fund.

NSAll africans Still holding a grudge IMF It dates back to the 1990s when it became known for the bitter pills it administered. Prior to bail, the fund will insist that countries agree on a painful structural adjustment program that includes reducing government spending and liberalizing the economy. Since then, IMF I’ve worked hard to present myself as a cuter lender than the cold-hearted funds of the past. Nowadays, the terms that come with loans are much less, and even those can be overlooked.

Listen to this story

Enjoy more audio and podcasts with iOS Also Android..

But recent events in West and Central Africa seek to balance the sometimes competing goals of quickly withdrawing emergency pandemic funding while fighting corruption, so at least find some of the old spirit, private. It suggests that you are forced to do that. Take the oil-rich Equatorial Guinea as an example. Family-owned Kleptocracy has signed a $ 283 million bail contract over three years. IMF The fund immediately handed over some cash, but since then has stopped signing checks fairly quietly. NS IMF A spokesman blamed the explosion at covid-19 and military bases for the slow pace of national reforms. The program, which is due to expire next year, will follow its fate in the nearby Congo-Brazzaville.

NS IMF In 2019, we agreed to lend $ 449 million to Congo Brazzaville. Denis Sassou Nugeso, President of Congo Brazzaville, is a healthy 77-year-old and has been in power almost uninterrupted since 1979. IMF Immediately released some cash. But then the wallet remained closed until the program expired in April. This was officially due to the “Debt Sustainability Challenge”. However, the fund has revealed its frustration at a slow pace of anti-corruption reform.

There is a bigger test first. In July IMF Approved loans to Gabon and Cameroon. These are also run by dilapidated dictators. Many who accused the fund of being too expensive in the 1990s still want it to be expensive. Human Rights Watch, the watchdog of the United States, IMF Creating a $ 690 million program in Cameroon is conditional on the state auditing covid-19 spending in allegations of fulfilling human rights promises and money being stolen. That’s not a bad idea.

This article was published in the printed Middle East and Africa section under the heading “Card Rejected”.

The IMF is becoming more cautious about who to fund.

Source link The IMF is becoming more cautious about who to fund.

Back to top button