N$3.9 billion IMF loan approved

N$3.9 billion IMF loan approved PHILLEPUS UUSIKU

Namibia joined other 85 countries in the world to benefit from International Monetary Fund (IMF) financial relief for Covid-19 and acquired a loan of N$3.9 billion to address the fiscal financing needs.

The N$3.9 billion loan whose repayment period is 5 years at an interest rate of 1.1%, is the first that Namibia has ever acquired from the institution.

According to Tonateni Shidhudhu, spokesperson of the Ministry of Finance, the application was done last year from the Rapid Financing Instrument (RFI) that was made available by IMF to middle-income countries.

The RFI provides rapid financial assistance to all IMF member countries facing financial headwinds and Balance of Payment challenges.

“The Covid-19 pandemic and its fallout have created a situation where Namibia's fiscal deficit is widening substantially, at the same time that the country's receipts from exports of goods and services are contracting with consequent potential pressures on the external accounts,” he pointed out.

The funds will provide needed financing to respond to the Covid-19 health emergency, including the purchase of vaccines and deployment of the vaccination campaign, needed to mitigate the severe socio-economic impact of the pandemic, Shidhudhu said.