Debt and financing risks from Covid-19 in Mena: IMF
WASHINGTON, 2 hours, 54 minutes ago While the strong response of the Mena, Afghanistan, and Pakistan (Menap) countries helped save lives and cushion the economic blow, it also exacerbated existing debt vulnerabilities and led to a surge in financing needs, said the International Monetary Fund (IMF) in a new report. The IMF’s Regional Economic Outlook Update for the Middle East and Central Asia explores these issues and policies to address them. Here are four key questions:
How significant were debt vulnerabilities in Menap prior to the pandemic and what were the primary concerns?
Here are four key questions: How significant were debt vulnerabilities in MENAP prior to the pandemic and what were the primary concerns? Many countries were already facing high debt. By the end of 2019, one-half of MENAP countries had government debt ratios above 70 percent of GDP and one in four countries faced public gross financing needs above 15 percent of GDP annually. With limited access to external financing, governments and large state-owned enterprises turned to domestic banks. This expanded banks’ exposure to the public sector in several of MENAP’s emerging markets ranging from over 20 percent of total banks’ assets in Iraq, Jordan, and Qatar, to above 45 percent in Algeria, Egypt, and Pakistan, and up to 60 percent in Lebanon. By contrast, banks in emerging markets elsewhere had a public sector exposure of 12 percent.
Pakistan to Experience Sluggish Economic Recovery in 2021: IMF propakistani.pk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from propakistani.pk Daily Mail and Mail on Sunday newspapers.
Amid Exceptional Uncertainty IMF Projects Growth for Rich Countries, Challenges for Developing Countries Amid Exceptional Uncertainty IMF Projects Growth for Rich Countries, Challenges for Developing Countries
January 26, 2021
Washington DC - The International Monetary Fund released projections on the world economy as countries continue to wrestle with the coronavirus. The Fund s World Economic Outlook Update projects 5.5% global growth in 2021, while noting developing countries face growing problems. While the IMF is uncertain in its predictions, it s clear that the developing world is mired in severe challenges due to high debts, few financial resources and lack of access to vaccines, stated Jubilee USA Executive Director Eric LeCompte who has reviewed IMF economic reports for more than a decade.