IMF will drip-feed funding to drive Ukraine reforms

2016 ◽  
Keyword(s):  
Central Bank ◽  
Reform Process ◽  
External Financing ◽  
Positive Signal ◽  
Foreign Reserves ◽  
Content Type ◽  
The Imf

Subject IMF conditionality as a driver for Ukrainian reforms Significance The IMF board's September 14 decision to release a 1-billion-dollar tranche to Ukraine after a delay of more than a year mixes partial acknowledgement of reforms to date with a call for swifter progress. Ukraine's heavy reliance on external financing makes IMF funding one of the few effective external instruments for keeping the reform process on track. The 2017 budget plan with a deficit of 3% of GDP reflects IMF advice. Impacts Securing IMF assistance will boost the government's domestic standing. A resumption in lending by the IMF and other international partners will send a positive signal to investors. Renewed funding is unlikely to improve Ukraine's investment outlook immediately. IMF money should allow the central bank to replenish depleted foreign reserves, reducing devaluation pressures.

Ghana's IMF bailout to persist despite souring ties

2016 ◽  
Keyword(s):  
Central Bank ◽  
Budget Deficit ◽  
Credit Rating ◽  
Gdp Growth ◽  
Content Type ◽  
Bank Financing ◽  
Electricity Crisis ◽  
Manufacturing Activity ◽  
The Government ◽  
The Imf

Significance Earlier this month, the government passed a bill allowing for central bank financing of the budget deficit, contravening a core requirement in its agreement with the Fund. Earlier breaches led to the fourth tranche of the bailout (worth 114 million dollars) being withheld. Impacts Other donors will withhold aid disbursements until the impasse between Accra and the IMF is resolved. The electricity crisis will continue to undermine manufacturing activity, contributing to disappointing GDP growth. Ivory Coast's pro-business reforms mean it could attract investors deterred by Ghana's economic woes. Prolonged tensions with the IMF coupled with a deterioration its Ghana's fiscal metrics may drive a credit rating downgrade.

Politics will not mar Paraguay's economic outlook

2017 ◽  
Keyword(s):  
Central Bank ◽  
World Bank ◽  
Content Type ◽  
Agricultural Exports ◽  
Tax Revenues ◽  
Infrastructure Investments ◽  
Economic Outlook ◽  
The Imf

Significance The Central Bank has revised upwards its 2017 growth forecast from 3.7% to 4.2%. Forecasts by the IMF and World Bank remain lower at around 3.3% and 3.6% respectively, based primarily on an expectation of low growth in Brazil. Impacts Agricultural exports will help sustain growth this year. Although debt is manageable, there are few prospects for raising low tax revenues. Investigations into the awarding of contracts are likely to put infrastructure investments on hold.

Expansionary Jordanian budget will contain discontent

2019 ◽  
Keyword(s):  
Social Media ◽  
Tax Evasion ◽  
Prime Minister ◽  
Economic Reforms ◽  
Positive Signal ◽  
Content Type ◽  
Credit Line ◽  
Public Scrutiny ◽  
The Government ◽  
The Imf

Significance That comes as the country’s own parliament prepares to vote on the 2020 fiscal bill before the end of the year. Amman is currently in the last year of a 723-million-dollar IMF credit line, which required it to cut debt levels. The budget is intended to stimulate growth and stave off further protests, while simultaneously persuading the IMF to extend its credit line for another three years during upcoming talks in January. Impacts There will be closer cooperation between the government and parliament over managing the economy. Signs of unrest and public discontent over economic reforms will ease, notably if a tax evasion crackdown features on social media. Razzaz will survive another year as prime minister, having already served 18 months, sending a positive signal to the IMF and investors. King Abdullah and Queen Rania will come under less public scrutiny and distance themselves further from day-to-day politics.

Prospects for the Russian economy to end-2017

2017 ◽  
Keyword(s):  
Central Bank ◽  
World Bank ◽  
Oil Prices ◽  
Content Type ◽  
Russian Economy ◽  
The Imf ◽  
Growth Forecasts

Subject Prospects for the Russian economy to end-2017. Significance Russia's return to growth began in the final quarter of 2016. Driven by higher global oil prices, the recovery has continued at the same modest pace into the first half of 2017 and looks set to persist for the rest of the year. As oil prices are higher than estimated at the beginning of the year, official growth forecasts for 2017 from the Central Bank of Russia (CBR) and external organisations such as the IMF and World Bank have been revised upwards.

Lebanon’s economy has further to fall

2021 ◽  
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Support ◽  
Content Type ◽  
Fiscal Reforms ◽  
Social Tensions ◽  
The Imf

Significance The central bank has struggled to address a deep financial crisis that, exacerbated by COVID-19, has impoverished a whole population. In addition to complex exchange controls, it has set banks an end-February deadline to increase their capital, after wealthy stakeholders successfully resisted an earlier proposed ‘bail-in’ of depositors to resolve structural losses. Impacts The IMF will await results of a stalled central bank audit before considering a financial support package -- also requiring fiscal reforms. There is minimal chance that an effective, reformist government will be formed. In the absence of any clear direction from above, social tensions will likely see a sharp and violent increase.

Sri Lanka will step up appeals to China and India

2021 ◽  
Keyword(s):  
Sri Lanka ◽  
Central Bank ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Economic Hardship ◽  
Content Type ◽  
China And India ◽  
The Imf

Significance Sri Lanka’s foreign exchange (forex) reserves fell to USD1.6bn at end-November, enough to finance only about one month’s imports. Colombo has in recent years relied on macroeconomic support from key partners Beijing and Delhi, but its relations with these players have come under some strain recently. Impacts Colombo will only turn to the IMF if its outreach to friendly countries fails to yield sufficiently favourable results. The central bank will strongly consider raising interest rates, having kept them steady at two policy meetings since hikes in August. Worsening economic hardship could prompt an increase in anti-government protests.

Proposed Mexican financial legislation sparks concerns

2021 ◽  
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Legal Change ◽  
Content Type ◽  
Investor Confidence ◽  
Potential Impact

Significance The move, however, has proven controversial, generating a backlash over its potential impact on commercial banks and the central bank (Banxico), which sees it as a threat to its autonomy. The proposals come amid an unusual surge in remittances flowing into the country. Impacts Any legal change that is seen as affecting Banxico’s autonomy would damage investor confidence significantly. AMLO may stop legislation changes if they cause a depreciation of the peso. Mexico’s economy looks set to become far more reliant on remittance income than it has been in past years.

Australian central bank holds rate as growth slips

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Central Bank ◽  
Interest Rates ◽  
Labour Markets ◽  
Content Type ◽  
Commercial Lenders ◽  
The Government ◽  
Roll Out ◽  
Growth Forecasts

Significance The RBA has cut its growth forecasts amid rising job losses, weakening demand and increasing signs that the latest COVID-19 lockdowns will continue to slow the economy until the pace of the vaccine roll-out programme can be increased. Impacts Although the RBA is independent, the government will hope it keeps rates low ahead of the elections due next year. Commercial lenders could raise interest rates independently of the RBA if inflation remains high. Wage pressures will re-emerge as labour markets tighten but may be mitigated by the extent of underemployment. Economic growth will be uneven across the country in coming months as pandemic-related restrictions vary by location.

Mexico central bank nomination risks stoking concerns

2021 ◽  
Keyword(s):  
Central Bank ◽  
Content Type

Headline MEXICO: Banxico nomination risks stoking concerns

Russia's central bank confident despite price rises

2021 ◽  
Keyword(s):  
Central Bank ◽  
Content Type

Headline RUSSIA: Central bank confident despite price rises

Sign in / Sign up

Export Citation Format

Share Document