As the world economy continues to stutter, many sub-Saharan African countries are turning to the Fund for financial support, though the Funds are coming with strict conditions to restrict spending.
Despite their popularity, PPPs have a very bad track record of delivering cost-effective investment for governments, and pose additional and serious problems by reducing transparency and accountability.
NGOs have called on the Bank and Fund to ensure that states’ basic needs, rather than just ability to pay, is incorporated in their review of the Debt Sustainability Framework used to assess low income countries.
The IMF has approved the third disbursement of a loan agreement to Ghana, however, concerns were raised regarding associated tax rises.
As Eurozone countries agree a new loan package to Greece, the IMF has conceded to ‘major concessions’ instead of up front debt relief and may participate in a new programme despite its insistence that the Fund's involvement in future programmes is dependent on ‘significant debt relief’.
A report by the UN independent expert on foreign debt, exploring inequality, financial crises and human rights, claims that IMF programmes are associated with a worsening of income distribution.
IMF and World Bank face up to slowing global economy, but downplay risks of new debt crises for low income countries
The IMF has confirmed its participation in negotiations for the third Greek loan programme since 2010, seeking debt relief, privatisation and pension reform. The IFC has invested €150 million in Greece's four main banks.
UN votes in favour of accepting new principles to guide sovereign debt restructuring, as CSO report warns of risk of new crises linked to aid and multilateral lending.
The IMF in June denied Nepal support under its Catastrophe Containment and Relief Trust, following the earthquake in April.