Pakistan seeks IMF loan restructuring after floods‎

25 08 2010

Officials from Pakistan are holding talks with the International Monetary Fund to discuss its $11bn loan package in the wake of the devastating floods.

The IMF’s regional director, Masood Ahmed, told the BBC the organisation wanted to find a way to help Pakistan “through this difficult phase”.

This could include lowering some fiscal targets or allowing Pakistan to apply for emergency natural disaster funding.

Earlier, UN officials described the humanitarian situation as critical.

They said that although the UN had raised 70% of the $460m (£295m) needed for emergency relief, many people had yet to receive any help. In the UK, relief agencies say public donors have now given £29m ($45m).

Government officials and aid agencies in the southern province of Sindh said 80% of those affected had fled their homes.

The Indus river outside the city of Hyderabad is at its highest for more than 50 years and is expected to rise further on Tuesday.

Prime Minister Yousuf Raza Gilani is expected to hold high level talks on Tuesday on Pakistan’s medical needs, amid growing concern of a public health disaster.

Doctors have been overwhelmed by the need in some areas – skin rashes and dehydration are common, many children have diarrhoea and there is concern about the spread of cholera.

Continue Reading: http://www.bbc.co.uk/news/world-south-asia-11060119





IMF set to approve Sri Lanka loan payment

25 08 2010

The International Monetary Fund (IMF) has indicated it will release the next tranche of a multi-billion dollar loan to Sri Lanka.

Following a two week mission to the country, the body gave an upbeat assessment of Sri Lanka’s economy.

It said government targets for deficit reduction were on track, with taxes increasing and spending being cut.

An IMF mission also arrived in Serbia on Monday to assess its economy with a view to releasing a loan payment.

The body agreed a 3bn euro ($3.8bn; £2.4bn) loan with the country last March.
‘Strong growth’

The IMF approved a $2.6bn (£1.7bn) loan to help Sri Lanka weather the global economic crisis last summer.

The Sri Lankan government also said it would use the money to pay for post-war reconstruction following the end of fighting with the Tamil Tiger rebels.

Continue Reading: http://www.bbc.co.uk/news/business-11064346