This new policy primarily targets users African Development FundBank Group Offer Loan Window
Board of Directors of the Board African Development Bank Approved a new policy aimed at strengthening the debt stability of low-income African countries. It approved the Fixed Borrowing Policy on February 23, 2022.
Fixed credit policy responds to the changing overall credit situation in Africa, especially in the countries mentioned above. In recent years, low-income countries have been able to access new financial resources, including private borrowers and borrowers outside the country. Racing Club. While this access has allowed them to fund important development needs, it has also increased their public debt.
The Covid 19 epidemic has hit public funds hard. The situation is exacerbated by the unprecedented easing of fiscal and monetary policies adopted by countries to mitigate the socio-economic impact of the epidemic.
According to the 2021 edition of the African Economic Outlook, governments announced fiscal stimulus packages after the outbreak of Govt. The African Development Bank By 2020, African governments will need an additional $ 154 billion to deal with the crisis.
To address this dilemma, the Fixed Borrowing Policy introduces two essential components to debt management. Emphasizes debt management and transparency through initially agreed policy measures and technical assistance. The second element relies on coordination and partnerships with other multidisciplinary development banks, development partners and donors.
The Bank Group has a standardized borrowing policy to replace the non-concessional accumulation policy adopted in 2008 and revised in 2011 to meet the operational requirements of the Group. African Development Bank And its regional member states.
Over the past two years, the new policy has been subject to extensive internal and external consultation with development partners, including regional member states, civil society and multilateral development banks.