NAIROBI: Kenya plans to hold follow-up meetings with the IMF in efforts to secure a new programme, Finance Minister John Mbadi said on Tuesday, and added the government is confident it will agree with the lender on the treatment of securitised debt.
The East African nation, which is seeking new ways to finance infrastructure projects due to sharply rising debt, has turned to securitisation of some revenues and borrowing against them.
While the government views the move as one that allows it to avoid accumulating more debt, the IMF wants the additional borrowing to be classified as normal debt, Mbadi said, adding he was confident they will come to an agreement.
Kenya’s $3.6 billion programme with the IMF expired earlier this year, and some officials have expressed interest in getting a new one that will include a lending component.
Some financial analysts have said that Kenya needs a new loan deal from the Washington-based Fund to anchor its external debt repayments.
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