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IMF Introduces Zero Interests Rates For Nigeria And Other Low Income Countries

IMF boss
IMF boss, Lagarde

IMF has announced an introduction of zero interest rates on all its concessional facilities for developing countries until 2018.

Managing Director, Mrs Christine Lagarde made the announcement at the ongoing IMF/ World Bank 2016 General Meeting in Washington D.C on Thursday. The meeting is themed: “We can end poverty together, global problem and global solutions’’.

According to Lagarde, the world needs to address the inequality issues through a strong international safety net. She also said that with strong, comprehensive, consistent and coordinated action, countries could achieve more inclusive growth.

She added that the body was pushing for strong reforms in infrastructure and education in Africa. In this light, it had received pledges of $344bn from 26 members.

Lagarde however disclosed that after the duration in 2018, the body will still maintain low interest rates across board. The board will also maintain the overall lending capacity of close to one trillion dollars by extending access to bilateral borrowing agreements.

Good News For Nigeria

Nigeria’s Minister of Finance, Mrs Kemi Adeosun has been negotiating to borrow from multilateral institutions like the IMF and the World Bank to fund capital projects in the country. Adeosun reiterated the country’s plan to get cheap loans to bridge the nation’s infrastructure deficit in critical sectors.

With this new development, countries with economic challenges like Nigeria can access long term concessionary facilities at zero interest rate.

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