Speaking yesterday at the ongoing IMF/World Bank Spring Meetings in the United States, Director, IMF Monetary and Capital Markets Department, Tobias Andrian, said there was nothing bad in borrowing from China, except that the terms of such loans are always questionable.
DMO said that as at June 2018, loans obtained by the Federal Government from China represented about 8.5 per cent of Nigeria’s external debt and that they were taken under concessionary terms. But Nigeria was last year seeking $6 billion from China to fund the construction of the Ibadan-Kano rail line project.
He said: “We advise countries that where those downside risks are increasing, to take more steps to ensure that vulnerabilities are not rising too much. Addressing non-performing loans is a first order importance for financial stability. Many countries have tackled that by developing secondary market for non-performing loans.
The Division Chief Monetary and Capital Markets at the IMF, Anna Ilyina, said the institutional mechanisms for resolution and recognition of non-performing loans are, of course, extremely important part of the process of cleaning up the banking system of bad loans and the authorities should continue working along those lines.
She said: “Widening the range of investors can be positive factor for emerging markets, yet that trend leaves economies vulnerable to a sudden reversal of capital flows in response to global trends. The vulnerabilities intensifying in a maturing credit cycle, this is the time for decisive policy action. The intensification of trade tensions and the threat of a disorderly practices have dented investor confidence.
IMF don't want us to be free from them, International politics
Why u dey Panadol for our own headache
hahaha imf in safia pain
I'm tired of this government. They keep borrowing left right and centre. They will tell us that EFCC have seized billions of dollars but the will go and borrow millions of dollars. Our foreign reserve has been depleted by more than 50%. NNPC & NLNG has been selling. Kilode ?
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