IMF warns Nigeria, others of financial fragilities, regulatory weaknesses
By Jeph Ajobaju, Chief Copy Editor
Mounting debts of Nigeria and other developing countries are of great concern, says the International Monetary Fund (IMF), warning of pressures and worsening debt burdens without support from the international community.
Tobias Andrian, IMF Director of Monetary and Capital Markets, sought concrete steps by emerging economies that will make the financial stability process operate faster, and in a more transparent way from now on.
He spoke at the Spring Meetings of the World Bank and the IMF in Washington, where he warned “the global economic growth is expected to be lower than earlier projected this year, signaling potential economic downturn.
“What we’re looking for is concrete steps by emerging economies that will make the process operate faster, and in a more transparent way. And something that debtor countries can look at and understand more clearly on how long things will take.
“Developing countries may face mounting debt and insufficient international support, risking another lost decade.”
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Financial fragilities, regulatory weaknesses
Andrian said the banking crisis highlights long-neglected financial fragilities and regulatory weaknesses, according to reporting by Vanguard.
“Declining energy costs lead to lower inflation, but elevated food prices maintain a high cost of living in many developing countries.
“Growing global asymmetries threaten developing countries’ resilience, requiring stronger multilateral action and an urgent focus on sovereign debt architecture.”
He alerted a record number of developing nations are at risk of a debt crisis, with ballooning inflation, escalating borrowing costs, and a strong dollar jacking up the cost for borrowing countries to repay loans and raise new loans.
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