The Exchange: IMF and sub-Saharan Africa 27 Oct 2020 The regional head of the International Monetary Fund, Abebe Aemro Selassie, joins Swaha Pattanaik to discuss how the Washington-based lender is helping hard-hit countries, debt difficulties, the need for reforms, and why policy choices are more limited than in advanced economies.
IMF enters brave new debt world with old map 14 Oct 2020 The international lender's approach to government debt restructurings is under scrutiny at its annual meetings this week. The debt landscape is shifting: Players and legal norms have changed, and ultra-low interest rates have upended risk metrics. The fund may struggle to adapt.
Guest view: Ways to defuse currency wars 13 Oct 2020 Weak economic activity is giving countries an incentive to use exchange rates to win a competitive edge in trade. Mark Sobel, a former U.S. Treasury official, argues that the world’s biggest economy is no innocent bystander this time round and explains how to calm tensions.
Argentina’s debt victory lap is way too early 1 Sep 2020 Buenos Aires is crowing about getting 99% approval for its $65 bln restructuring deal. It’s a good first step, but it should have been easier. Negotiating a realistic reform plan with the IMF will be tricky, and balancing growth and stability in the future will be harder still.
Lebanon’s gash cuts too deep for orthodox bandage 10 Aug 2020 France hosted an emergency conference on Sunday to arrange aid for the devastated nation - and the IMF called for reforms. But the heavily indebted country has no functioning government, banking system or economy. And the people are livid. Normal reforms look like a pipe dream.
Argentina risks stumbling at the finish line 3 Jun 2020 The nine-time defaulter and its creditors are nearing a $65 bln restructuring deal. It might not seem fair for Argentina to give more ground, especially when it has IMF support. It can’t risk being frozen out of global capital markets, though. Playing tough could backfire.
Debt forgiveness is, unfortunately, a bad idea 14 May 2020 Over 300 officials from around the world have urged the IMF and World Bank to cancel poor countries’ debt. But that would favor heavier borrowers, it doesn’t ask for any accountability, it could limit future lending, and it hands advantages to China. A debt standstill is safer.
IMF helping hand is worth more than its forecasts 14 Apr 2020 The international lender’s grim new predictions see the global economy contracting 3% this year. This may be little better than a guess. More useful is the practical help, like debt service relief, that new boss Kristalina Georgieva is offering the most vulnerable countries.
Pandemics give rich selfish reason to aid the poor 6 Mar 2020 Developing countries are often worst hit and they undercut the containment efforts of wealthier ones. The spreading coronavirus knocks the case for globalisation but it promotes the need for cooperation on health. One idea to fund such assistance is a travel-linked pandemic tax.
IMF’s $44 bln error in Argentina calls for haircut 24 Feb 2020 The international lender now says the serial defaulter’s debt burden – near 90% of GDP – is unsustainable and that private creditors will have to take a hit. It’s right on both counts. But it also fumbled this bailout badly. In such an exceptional case, it should share the pain.
LatAm leaders will be trapped in vicious cycle 26 Dec 2019 Protests across the region will make growth even lousier in 2020, which in turn will make people even angrier. The presidents of Chile and Ecuador are most exposed. Expect them to water down reforms in a bid to stay in office. Whether it works or not, their economies will suffer.
Lebanon’s financial alchemy is losing its magic 18 Dec 2019 The world’s third most indebted nation – with borrowings north of 150% of GDP – may be careening toward a default and an IMF rescue. A complex financial engineering scheme that propped up the banking system is now sputtering. Local banks and foreign bondholders could take a hit.
Argentine handover is chance for IMF LatAm rebrand 10 Dec 2019 The unloved lender, $45 bln on the hook, now has to deal with new President Alberto Fernandez and his austerity-critic economy minister, Martin Guzman. The IMF needs a reboot across the region. Accepting political realities and updating failed prescriptions would be a good start.
Viewsroom: WeWork’s future may lie in China’s past 24 Oct 2019 Beijing-based Kr Space switched from renting out space held on long-term leases to selling services after the shared-office market crashed. Following suit may help WeWork stem losses. Also: climate change and Canada’s election. Plus: the gloomy IMF and unrest in Latin America.
Saudi Arabia adds World Bank halo to FDI horns 24 Oct 2019 The kingdom is becoming a better place to do business, the global lender says. But both short and long-term data show it’s a long way from attracting the flows of foreign capital needed to make its Vision 2030 plan fly. That requires stability and wider reform. Saudi lacks both.
World’s financial superheroes encounter kryptonite 21 Oct 2019 Fixing what’s blighting global growth prospects is, for once, beyond the combined capabilities of the finance ministers and central bankers who frequent the IMF’s annual meetings. They can do a lot, but are proving less potent when gravel is thrown in the gears of world trade.
Pemex debt riddle stumps Mexican president 15 Oct 2019 The IMF has panned the isolationist approach AMLO, as he's known, is taking. His budget relies on the state oil giant producing cash, but Pemex needs all the pesos and dollars it can get to boost production and reduce $102 bln of debt. Without private investment, it can't add up.
IMF crystal ball is cloudiest on what matters most 15 Oct 2019 The international lender cut its growth predictions for this year and next. Issues like trade wars and Brexit make it hard to forecast how some of the most advanced economies will perform. If there are stumbles, these are also the countries least likely to heed IMF advice.
Ecuador violence tests new IMF chief’s resolve 9 Oct 2019 Days before Kristalina Georgieva presides over her first annual meeting, President Lenin Moreno fled the capital as IMF-backed austerity measures sparked riots. Balancing support for the tough choices he’s making, while improving the IMF’s standing in the region, will be tricky.
Ebola bonds are wonky way to tackle pandemics 13 Aug 2019 The World Bank-backed instruments are meant to use private capital to fight disease in poor countries. But their rather random structures create weird incentives for both issuer and buyer. As a way to tackle outbreaks, it’s not obvious they’re better than more direct charity.