This was expressed by Wenjie Chen, the IMF’s Deputy Divisional Chief, in a keynote address at the International Monetary Fund Regional Economic Outlook on Tuesday in Lagos. Chen claims that the economies of Sub-Saharan African countries like Nigeria have continued to be strained by high borrowing costs, high-interest rates, and the rising value of the dollar.
Nigeria has been forewarned by the International Monetary Fund to prepare for a substantial decrease in foreign loans as the world economy continues to undergo fresh shocks and contractions.
“In terms of the funding squeeze, the three main manifestations that many countries are facing are the rise in borrowing costs. You can see that virtually all the frontier markets have been shut out of the Eurobond markets since the spring of 2022. What that means is that they cannot raise financing on these international markets. Eurobond market has been a large component of financing for these countries,” she said.
