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IMF approves $224.9 mln standby loan for Tanzania

Discussion in 'Jukwaa la Siasa' started by nngu007, Jul 10, 2012.

  1. nngu007

    nngu007 JF-Expert Member

    #1
    Jul 10, 2012
    Joined: Aug 2, 2010
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    Mon, Jul 9th, 2012

    Tanzania |


    DAR ES SALAAM (Reuters) – The International Monetary Fund has approved a $224.9 million standby credit line to Tanzania to help the country deal with any potential pressures on its balance of payments position from troubles facing the global economy.




    The east African nation could have to deal with the effects of any escalation of the debt crisis in the euro area from a position of weakness, after prices climbed sharply last year and its shilling currency weakened against the dollar.

    "While
    Tanzania does not face an immediate balance of payments need, the newly approved Standby Credit Facility (SCF) provides a comfortable buffer against external shocks," the IMF's deputy managing director, Naoyuki Shinohara, said in a statement seen by Reuters on Monday.


    "The authorities intend to treat the SCF as precautionary and will only draw the IMF resources should external demand deteriorate or access to international financial markets become more limited."


    He said
    Tanzania should sustain a tight monetary policy in 2012/13 to curb high inflation and bring it down to targeted single-digit levels.


    The year-on-year inflation rate eased in May to 18.2 percent, from 18.7 percent in April. Just as in neighbouring
    Kenya and Uganda, inflation was driven up partly by high fuel and food costs.


    "The Bank of
    Tanzania intends to move to more active use of interest rates as a policy instrument. The flexible exchange rate regime will ease the burden on monetary policy and help maintain adequate international reserves," Shinohara said.


    Tanzania's GDP growth in the first half of the 2011/12 fiscal year was 6.5 percent, unchanged from a year ago, the IMF said in the statement.


    The government cut its economic growth forecast for 2012 to 6.8 percent, from an earlier estimate of 7 percent, due to a prolonged drought and chronic energy shortages.


    Other nations in the region have been racing to build up buffers against the impact of sluggish global growth and any worsening of the euro area crisis, with Mauritius unveiling a credit line to banks to help exporters.







     
  2. nngu007

    nngu007 JF-Expert Member

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    During Nyerere's Era they used to try to EDUCATE us on what are the PAINFUL PILLS are coming with IMF LOANs

    Since his departure we have several, but Our beloved sitting Governments never tried to tell US how We, Our Kids, Our

    Grand Kids we/they going to pay these CONDITIONS and we are blindsided we don't know what PILLS we took...

    * Ni Hiyo GAS inawavuruga akili quick estimate $ 21 TRILLION
     
  3. m

    mambomengi JF-Expert Member

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    Asante IMF, tutaendelea kulipana posho kwa fedha za kukopa, shauri Yao wajukuu watajijua jinsi ya kulipa madeni.
     
  4. H

    Honolulu JF-Expert Member

    #4
    Jul 10, 2012
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    Hizo zinaingia katika mifuko ya vibaka wachache na wala hakuna unafuu wowote!! Mfumo tulio nao usipobadilika, hakuna matumaini yoyote!!!
     
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