The International Monetary Fund (IMF) on Tuesday, declared its intentions to lend Sub-saharan countries affected by plunge in oil prices, but admitted that it has not received any formal green light from the countries.
The IMF Boss, Ms. Christine Lagarde in an official visit to Nigeria last month said it will strengthen the fund and partnership with the largest economy in sub Saharan Africa. She advised the federal government not to deplete the countries reserves because of rigid rules. She also told the National Assembly to consider increasing the Value Added Tax from 5%.
Nigeria and Angola still insist on turning to World Bank when the International Monetary Fund (IMF) is the ultimate lender to turn to in times of financial crisis.
According to PM news, IMF noted that most of these oil exporting sub saharan countries have enough fund in their foreign reserve, still retain a slim overall debt level, and they are safe from payment crisis for the time being.
“The sharp decline in oil prices represents a formidable shock on the oil exporting countries of sub-Saharan Africa, especially in view of their strong reliance on oil receipts for fiscal and external revenues,” an IMF spokeswoman said in a statement.
“With the exception of Chad, which already had a program in place with the IMF prior to the oil price shock, we have not received any new request for financial assistance from sub-Saharan African oil exporters,” the IMF spokeswoman added. “We indeed stand ready to assist the authorities, should such a request materialize.”