IMF approves $49.1 million loan for Lesotho to respond to COVID-19 economic fallout

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. Become our exclusive member and help us keep our quality news free and available for all.

The International Monetary Fund (IMF) on Wednesday approved $49.1 million loan for Lesotho to respond to COVID-19 economic fallout.

IMF said $16.5 million was approved under the Rapid Credit Facility and $32.6 million was approved under the Rapid Financing Instrument, bringing the total amount of about $49.1 million, to help Lesotho meet urgent balance of payments needs stemming from the COVID-19 pandemic.

According to the IMF, the economic consequences of the COVID-19 pandemic in Lesotho have been severe, with a weak global and regional environment reducing exports and remittances.

“The pandemic comes at a time when Lesotho’s economy was already facing challenges. Growth has been subdued for several years, reflecting structural bottlenecks and a weak regional environment, while government finances have struggled to cope with the volatility of transfers from the Southern African Customs Union (SACU) that account for around half of total revenues,” IMF added.

“The COVID-19 pandemic is having a severe social and economic impact on Lesotho. Disruptions to supply chains for major industries and a national shutdown to contain the virus have led to a sharp drop in production. The economy is being further hit by declining external demand for textiles and diamonds, shrinking remittances, and delays to major construction projects,” said Mr. Tao Zhang, a Deputy Managing Director and Acting Chair at the IMF.

According to him, “Once COVID-19 subsides and in the context of a likely drop in SACU revenues, there is an urgent need to strengthen economic fundamentals and ensure debt sustainability by carrying out fiscal consolidation and implementing growth-enhancing structural reforms. The COVID-19 crisis heightens the importance of a steadfast implementation of pro -growth reforms to ensure sustainable and inclusive medium-term growth.”

Read full article

Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: simonateba@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

MOST POPULAR

Nigeria-born former Florida State basketball big man Michael Ojo dies of heart attack in Serbia at 27

Nigeria-born former Florida State basketball big man Michael Ojo died of a heart attack in Serbia on Friday. He was only...

Ivory Coast President Alassane Ouattara says he’s now running for re-election after saying he would not seek third term

Ivory Coast President Alassane Ouattara announced on Thursday evening that he was running for re-election. The presidential election would take place...

South African President appoints committee to investigate COVID-19 corruption

South African President Cyril Ramaphosa has, following a decision taken by Cabinet at its meeting of Wednesday, August 5, 2020, appointed...

68 percent of people who contracted COVID-19 in Africa have recovered while five countries – South Africa, Egypt, Nigeria, Ghana and Algeria account for 75 percent of all cases

About 68 percent of people who contracted COVID-19 in Africa have recovered, the Africa CDC announced at a briefing on Thursday.

WHO ramps up COVID-19 support to hotspot countries in Africa

The first members of a surge team of health experts from the World Health Organization (WHO) have arrived in Johannesburg, South Africa,...
- Advertisement -

LATEST STORIES

President Ramaphosa highlights promising signs as South Africa hits half a million coronavirus cases

President Cyril Ramaphosa on Sunday highlighted some promising signs even as South Africa hit half a million coronavirus cases and thousands...

24,000 South African health workers contract coronavirus, 181 die

About 24,000 South African health workers have contracted coronavirus and at least 181 of them have died, health minister Zweli Mkwize...

South African President appoints committee to investigate COVID-19 corruption

South African President Cyril Ramaphosa has, following a decision taken by Cabinet at its meeting of Wednesday, August 5, 2020, appointed...

68 percent of people who contracted COVID-19 in Africa have recovered while five countries – South Africa, Egypt, Nigeria, Ghana and Algeria account for 75 percent of all cases

About 68 percent of people who contracted COVID-19 in Africa have recovered, the Africa CDC announced at a briefing on Thursday.

South Africa’s grocery retailer Shoprite announces plans to exit Nigeria amid economic crisis

South Africa's grocery retailer Shoprite on Monday announced plans to exit Nigeria amid an economic crisis caused by a shrinking middle...

[/read_more]

Read full article

error: Alert: Content is protected !!
Share
Tweet
Share
Reddit
WhatsApp