{"id":25244,"date":"2021-04-02T19:44:19","date_gmt":"2021-04-02T19:44:19","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/?p=25244"},"modified":"2021-04-02T19:44:19","modified_gmt":"2021-04-02T19:44:19","slug":"treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis","title":{"rendered":"Treasury Proposes Printing More Cash to Solve Kenya’s Debt Crisis"},"content":{"rendered":"

AfricaPress-Kenya:<\/strong> Kenya has backed the push for the International Monetary Fund\u00a0to increase Special Drawing Rights(SDR) limits in a bid to solve the country’s debt crisis. This will allow the country to print more cash for circulation – without diluting the local currency.<\/p>\n

The proposition was made on Thursday, April 1 during a conference of \u00a0African Finance, \u00a0planning, and development \u00a0Ministers with the World Bank and IMF.<\/p>\n

\u201cWe propose the enhancement of the limits of access to IMF facilities through reallocation of existing SDRs and allocating new SDRs, including strengthening the quick disbursement of the IMF through Rapid Credit Facility (RCF) and (Rapid Financing Instrument (RFI) and short-term liquidity lines,\u201d proposed Treasury Cabinet secretary Ukur Yatani.<\/p>\n

Developed countries have been printing billions\u00a0to boost businesses and offer citizens under lockdown stimulus cheques, whereas developing\u00a0countries have been reluctant to avoid depreciating their currencies.<\/p>\n

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\"Kenyan<\/div>\n
Kenyan Currency notes.<\/div>\n
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Negotiations are underway\u00a0to establish whether countries can use part of the SDR reallocations to pay interest on their international bonds, which would allow them to safeguard\u00a0their fiscal positions without defaulting.<\/p>\n

SDRs were introduced by the IMF in the 1970s after collapse of the Breton Woods system. The IMF allocates them in the form of a reserve asset, similar to the foreign currency reserves held by central banks. The value of an SDR is fixed to a basket of five major currencies: the U.S. dollar, the euro, the Chinese yuan, the Japanese yen, and the pound sterling in order of the fixed amount of each currency in the basket<\/p>\n

Kenya received\u00a0a debt service suspension\u00a0from January to the end of June by the\u00a0Paris Club of international creditors after\u00a0filing\u00a0for a Debt Service Suspension Initiative for a Ksh69 billion loan.<\/p>\n

A week later, China suspended the country’s debt. The government owes China more than Ksh725 billion in\u00a0bilateral debt with the total debt in the country expected to cross the Ksh10 trillion mark.<\/p>\n

IMF Executives on\u00a0March 18, approved a $2.4 billion (Ksh263 billion) loan that Kenya had been waiting for to help in economic recovery.<\/p>\n

The loan was issued on a\u00a0 combined arrangement under the Extended Fund Facility and Extended Credit Facility which the IMF said is low-cost financing. IMF said that Kenya was on an economic recovery track thus justifying the approval of the loan.<\/p>\n

\u201cKenya\u2019s economy is now picking up speed after the COVID-19 shock, but the pandemic has left deep imprints on the country\u2019s fiscal and debt positions,\u201d read the statement by IMF.<\/p>\n

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According to the Public debt Management Office Director-General Haron Sirima, the government\u00a0plans to use part of the new loan to offset its previous Eurobond loans which have already matured. The new loan\u00a0adds to Kenya’s current debt which stands at Ksh7.3 trillion.<\/p>\n

The fourth Eurobond loan\u00a0brings the total to Ksh734 billion, Kenya\u2019s stock of Eurobond.\u00a0Kenya is also seeking Ksh10\u00a0billion from the World Bank to help in procuring the next Covid-19 vaccines<\/p>\n

According to the 2021 Budget Policy Statement (BPS),\u00a0the cheaper loans that the government was targeting were\u00a0exhausted pushing the country to seek\u00a0external commercial funding<\/p>\n","protected":false},"excerpt":{"rendered":"

AfricaPress-Kenya: Kenya has backed the push for the International Monetary Fund\u00a0to increase Special Drawing Rights(SDR) limits in a bid to solve the country’s debt crisis. This will allow the country to print more cash for circulation – without diluting the local currency. The proposition was made on Thursday, April 1 during a conference of \u00a0African […]<\/p>\n","protected":false},"author":84,"featured_media":25231,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[8069,2387],"class_list":["post-25244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-sdr","tag-ukur-yatani"],"yoast_head":"\nTreasury Proposes Printing More Cash to Solve Kenya's Debt Crisis - kenya<\/title>\n<meta name=\"description\" content=\"Kenya has backed the push for the International Monetary Fund\u00a0to increase Special Drawing Rights(SDR) limits in a bid to solve the country\" \/>\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\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Treasury Proposes Printing More Cash to Solve Kenya's Debt Crisis\" \/>\n<meta property=\"og:description\" content=\"Kenya has backed the push for the International Monetary Fund\u00a0to increase Special Drawing Rights(SDR) limits in a bid to solve the country\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis\" \/>\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=\"2021-04-02T19:44:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/04\/606772422e360-606772422e362Treasury-CS-Ukur-Yatani-addresses-the-media-on-November-25-2020-in-Nairobi.jpg.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"470\" \/>\n\t<meta property=\"og:image:height\" content=\"235\" \/>\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\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Treasury Proposes Printing More Cash to Solve Kenya’s Debt Crisis\",\"datePublished\":\"2021-04-02T19:44:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis\"},\"wordCount\":532,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/04\/606772422e360-606772422e362Treasury-CS-Ukur-Yatani-addresses-the-media-on-November-25-2020-in-Nairobi.jpg.jpg\",\"keywords\":[\"SDR\",\"Ukur Yatani\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-proposes-printing-more-cash-to-solve-kenyas-debt-crisis\",\"name\":\"Treasury Proposes Printing More Cash to Solve Kenya's Debt Crisis - 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