…Urges Nigerian beneficiaries to keep receipt of $3.4bn loan spending
The International Monetary Fund has expressed fears over the impact of the Coronavirus Disease on countries.
Its report shows that emerging market economies have outlined some measures to deal with COVID-19, adding that inadequate policy space might compel some countries to resort to unorthodox measures, including price controls, trade restrictions as well as unconventional monetary policy.
Despite measures implemented to deal with the pandemic, emerging market economies show signs of considerable uncertainty, it noted.
In its June World Economic Outlook update, the IMF revealed that a number of emerging market economies such as South Africa had eased monetary policy.
Managing Director of IMF, Kristalina Georgieva, said such economies relaxed their financial stance, hoping to tackle the health crisis, support people and firms, and offset the economic shocks.
“Confronting a more severe downturn will be challenging because most emerging markets entered the current crisis with limited room for traditional fiscal, monetary and external policy support. And much policy room has already been used up by actions undertaken in recent months,” IMF stated.
Earlier, Nigeria had secured the $3.4bn emergency loan it requested from the IMF, which was approved by the IMF board on April 28, to assist the country fight against COVID-19.
Disclosing that the $3.4bn had been credited to the Central Bank of Nigeria’s account, Georgieva explained that the conditions for the loan were quite favourable, as the repayment period was five years, with up to two and a half years grace period.
Noting that the interest on the loan is one per cent, the IMF director urged all receivers of the fund in Nigeria to keep receipts of expenditure.
