Stop going to China for loan – IMF to Nigeria

The International Monetary Fund (IMF) has warned developing countries including Nigeria, against taking loans from China because of harsh conditions attached.

This advice was issued by Mr Tobias Adrian during the launch of the Global Financial Stability Report for April, 2019 at the IMF/World Bank meetings in Washington D.C, U.S on Wednesday.

“Capital flows, which includes capital flows from China are of course important for development.
“On the other hand, what is very important in lending arrangements are the terms of the loans and we urge countries to make sure that when they borrow from abroad the terms are favourable.

“In particular, we recommend that loans to countries should conform with Paris Club arrangements and that is not always the case of loans from China,.

As for  Nigeria’s rising debt levels, Adrian said “At the moment, funding conditions in economies such as Nigeria and other sub-Saharan African countries are very favourable but that may change at some point.”

It however reviewed Nigeria’s growth upwards to 2.1% and commended the country’s latest Strategic Revenue Growth Initiative, which looks at a comprehensive approach to tax reform. (NAN)

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