Kenya denies applying for suspension of debt payments under G20 initiative

Source: Xinhua| 2020-11-20 23:21:30|Editor: huaxia

NAIROBI, Nov. 20 (Xinhua) -- Kenya's Treasury said on Friday it has not applied for suspension of debt payments under the G20 COVID-19 initiative aimed at helping poor countries contain the spread of the COVID-19 pandemic.

Ukur Yatani, cabinet secretary of the National Treasury, said he was encouraged that economic activity has been picking up following a raft of fiscal and monetary policy interventions and the reopening of the economy.

"Kenya seeks a cautious approach in evaluating the costs and benefits of the offer and making an informed decision to safeguard the economic and financial standing of the country," Yatani said in a statement issued in Nairobi.

He said the G20 major economies in May offered to suspend debt service for external debt for low-to-middle-income economies facing temporary liquidity challenges during the COVID-19 pandemic period.

"Kenya welcomes this intervention among others in the form of financial support targeted to the health sector. In particular, the government acknowledges the immense support received through multilateral and bilateral agencies towards mitigating the effects of the COVID-19 pandemic," Yatani said.

"Whereas challenges remain given the uncertainties of COVID-19 pandemic, we are confident that the economy will respond to policy and structural reform measures supported by our development partners," he said.

Yatani said Kenya is currently in talks with the International Monetary Fund (IMF) for a program to anchor fiscal policy to stabilize the economy and address emerging vulnerabilities. Enditem