{"id":108307,"date":"2023-12-06T20:10:21","date_gmt":"2023-12-06T20:10:21","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks"},"modified":"2023-12-06T21:17:45","modified_gmt":"2023-12-06T21:17:45","slug":"africa-wants-imf-funds-directed-to-development-banks","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks","title":{"rendered":"Africa wants IMF funds directed to development banks"},"content":{"rendered":"

Africa-Press – Kenya. <\/strong><\/span>Leaders from developing countries want all IMF Special Drawing Rights funds channeled through development banks, for affordability and widened impact scale.<\/p>\n

Speaking on the sidelines of the COP28 in Dubai, African Development Bank Group president Akinwumi Adesina said the funds sent to African countries for instance, should be routed through AfDB.<\/p>\n

\u201cThe benefits range from the multilateral development bank\u2019s unique value proposition as they can multiply the re-channeled Special Drawing Rights (SDR) by at least three to four times their original values,\u201d Adesina said.<\/p>\n

This, he said will transform the SDRs from foreign reserve assets into dynamic lending instruments at an affordable cost, to support critical development challenges in African countries.<\/p>\n

SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries such as Kenya.<\/p>\n

It is majorly intended to provide a country with liquidity in case of an economic shock, allowing them to reduce their reliance on more expensive domestic or external debt for building reserves.<\/p>\n

Early this year, Kenya was lined up as among the top beneficiaries of the planned increase on quota SDR allocation, following the decision by IMF’s Executive Board to increase its member country allocations.<\/p>\n

This was intended to cushion the country\u2019s dwindling forex reserves, amidst the tough economic times and the weakening shilling against the greenback.<\/p>\n

Kenya\u2019s SDR quota at the IMF as of September stood at $542.8 million, or Sh91.8 billion, offering the country a critical buffer in case of external shocks.<\/p>\n

Earlier during the increment review, analysts expected that the country\u2019s SDR quota would rise above 1 billion (Sh169.4 billion), as its share has over the years been lower than that of smaller economies.<\/p>\n

Such ambitions could be propelled with the full implementation of the re-channeling proposal, according to Adesina.<\/p>\n

He further noted that full realisation of the proposal will be essential in boosting the capital resources of the development bank in fulfilling its mandate in terms of development in the region.<\/p>\n

\u201cThis is while cushioning the countries of the high interest rates and IMF charges as the development bank will pay the charges directly to the countries lending their SDRs to the African countries through the IMF,\u201d he said.<\/p>\n

Discussions to re-channel the support funding began in June this year in Paris during Financial Pact summit, where global leaders met to review and revise the current global financial architecture to create a more just and beneficial system, especially for the developing nations.<\/p>\n

Spearheaded by AfDB and the Inter-American Development Bank (IDB), the proposal was backed to help unlock significant funds to address pressing global challenges, and catalyse sustainable development in low-income countries, particularly in Africa.<\/p>\n

At the height of the COVID-19 pandemic in 2021, the IMF shored up the global economy by allocating $650 billion (Sh99.7 trillion) in SDRs.<\/p>\n

This action demonstrated the global community\u2019s capacity to respond adequately to unprecedented crises, AfDB said in a statement.<\/p>\n

However, of the newly issued SDRs, Africa received only about five per cent of the total allocation, the smallest portion among the different regions of the world.<\/p>\n

Currently, IMF members channel some SDR resources to developing countries through the IMF\u2019s existing Poverty Reduction and Growth Trust (PRGT) and the newly established Resilience and Sustainability Trust (RST).<\/p>\n

\u201cWhile these measures are commendable, we believe there is a need for a more targeted and complementary third option;re-channeling SDRs through multilateral development banks (MDBs),\u201d he said.<\/p>\n

For More News And Analysis About Kenya<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Kenya. Leaders from developing countries want all IMF Special Drawing Rights funds channeled through development banks, for affordability and widened impact scale. Speaking on the sidelines of the COP28 in Dubai, African Development Bank Group president Akinwumi Adesina said the funds sent to African countries for instance, should be routed through AfDB. \u201cThe […]<\/p>\n","protected":false},"author":84,"featured_media":108306,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[6857,7003,544],"class_list":["post-108307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-kenya","tag-kenya"],"yoast_head":"\nAfrica wants IMF funds directed to development banks - kenya<\/title>\n<meta name=\"description\" content=\"Leaders from developing countries want all IMF Special Drawing Rights funds channeled through development banks, for aff ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Africa wants IMF funds directed to development banks\" \/>\n<meta property=\"og:description\" content=\"Leaders from developing countries want all IMF Special Drawing Rights funds channeled through development banks, for aff ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-06T20:10:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-06T21:17:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2023\/12\/sm_1701883990.570333.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Africa wants IMF funds directed to development banks\",\"datePublished\":\"2023-12-06T20:10:21+00:00\",\"dateModified\":\"2023-12-06T21:17:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks\"},\"wordCount\":591,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2023\/12\/sm_1701883990.570333.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Kenya\",\"Kenya\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/africa-wants-imf-funds-directed-to-development-banks\",\"name\":\"Africa wants IMF funds directed to development banks - 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