IMF approves $688 million precautionary loan for Kenya

FMIThe International Monetary Fund has announced on the 12th February, a precautionary credit line of nearly $ 688 million for Kenya to prevent the country against possible external economic “shocks”. “The IMF’s Board of Directors has given the green light to two credit facilities that will be extended to over one year and amounting to a total of 688.3 million dollars,” said the institution in a statement.

“These plans provide a base for the continuation of institutional reforms of macroeconomic and help to protect the country against the impact of potential shocks,” said the IMF.

The precautionary credit line from the IMF credit facility allows provide funding to meet the needs of actual or potential balance of payments of countries pursuing sound economic policies. It was designed to serve as insurance or to help resolve crises related to internal and external economic shocks.

The admission of a country to benefit from this type of credit lines demonstrates the strength of its economy and its good economic policy. According to the IMF, the Kenyan authorities have indicated that they did not intend for the time to use these facilities unless “shocks do not rise to balance of payment needs.”

Kenya’s economy is expected to grow 5.3% in 2014, against 5.1% in 2013, thanks to “dynamic investment” and a “strong activity in the manufacturing sector,” according to the IMF forecast, reminiscent however, that “the bad weather has affected crops” and that “security concerns related to attacks by Somali Shebab have leaded the tourism” in the country.

About Khalid Al Mouahidi 3035 Articles
Khalid Al Mouahidi : A binational from the US and Morocco, Khalid El Mouahidi has worked for several american companies in the Maghreb Region and is currently based in Casablanca, where he is doing consulting jobs for major international companies . Khalid writes analytical pieces about economic ties between the Maghreb and the Mena Region, where he has an extensive network