Home » Business » IMF cautions Nigeria, others on China loans
Business Cover Story

IMF cautions Nigeria, others on China loans

IMF cautions Nigeria, others on China loans - nigeria and, nigeria, loans from china, IMF, global financial stability, China, and other

The International Monetary Fund () has cautioned Nigeria developing countries from taking loans from due to unfavourable loan conditions.

Mr Tobias Adrian said this on Wednesday during the launch of the Report for April, 2019 at the /World Bank meetings in Washington D.C, U.S.

“Capital flows, which includes capital flows from are of course important for development.

“On the other hand, what is very important in lending arrangements are the terms of the loans and we urge countries to make sure that when they borrow from abroad the terms are favourable.

“In particular, we recommend that loans to countries should conform with Paris Club arrangements and that is not always the case of ,” he said.

READ ALSO  Union leader faults FG on railway concession

On Nigeria’s rising debt levels, Adrian said that the IMF was not overly concerned, as it would allow the country to invest more in developing critical infrastructure.

“At the moment, funding conditions in economies such as Nigeria sub-Saharan African countries are very favourable but that may change at some point,” he said.

The April 2019 Report (GFSR) finds that in spite of significant variability over the past two quarters, financial conditions remained accommodative.

As a result, financial vulnerabilities have continued to build in the sovereign, corporate, and non bank financial sectors in several systemically important countries, leading to elevated medium-term risks.

READ ALSO  Nigerian newspapers: 10 things you need to know this Monday morning

Also, the IMF in the April 2019 Fiscal Monitor Report urged Nigeria to increase Value Added Tax, increase and expand the coverage of excise duties.

The IMF commended the country’s latest Strategic Revenue Growth Initiative, which looks at a comprehensive approach to tax reform. (NAN)

READ ALSO: Our foreign automobile competitors using GTB, EFCC to destroy Innoson Vehicles– Chukwuma

Add Comment

Click here to post a comment

Social Media Connect