Kenya is discussing a new standby credit facility with the International Monetary Fund (IMF) after the expiry of a previous programme last year, the institution’s representative to Nairobi said on Tuesday, Reuters reports.
The 99 Bilion arrangement expired last September after the government failed to meet the fund’s conditions for an extension, including the repeal of a cap on commercial lending.
“I can just confirm that discussions on a new programme are ongoing,” Jan Mikkelsen said.
The government is preparing to issue a 250 billion Eurobond and analysts say it would get better interest rates if it secured the standby credit arrangement with the IMF before it goes to market.