It’s not Pakistan alone which gets rejected with its loan application to IMF. Pakistan has a traditional history of borrowing money and not returning. The newly added country to this practice is Gabon, Africa.
Canada’s Prime Minister Mark Carney, offers LNG to India to meet Indian demand for energy.
Johannesburg, March 9 – Gabon is facing series of economic hurdles in the last three years. Started with a coup, and a contentious election and four different finance Ministers in just three years, has pushed the country to the severe economic crisis. Gabon helplessly is turning to the International Monitory Fund (IMF) for the help.
Its push for an IMF loan is not very effective as the regional investors are not very sure of investment in Gabon. IMF also wxpressed significant implications for its cash-strapped regional neighbors.
However the investors and Gabon’s media see the IMF push as crucial, but there are significant obstacles, mainly Government’s expansionary fiscal policy, which IMF is objecting to.
Finally IMF had made 10 day trip to Gabon to check the actual economic conditions. Concluding the visit the IMF officials stated the talks would continue with Gabon and they have to correct few policies for safeguarding the region. The talks were first since several Other African countries too wanted to approach IMF for the loan.
IMF stated years of political instability has hit the country and IMF has imposed a few restrictions on the loan. The Gabon Government has stated turning to IMF was a part of government’s intention to strengthen budget and to sustain the public finances.
IMF is yet to make an official statement on the planned package.