Kenya finance minister optimistic IMF will release funds

NAIROBI – Kenyan Finance Minister David Mwiraria said yesterday he is optimistic the International Monetary Fund (IMF) will release a delayed loan after more than a week of talks with fund representatives visiting Nairobi.

The discussions involve whether the IMF will release the second part of a US$252,8 million (N$1,643 billion) loan package to the east African country, granted in November. The fund, often seen as a bellwether for other international donors, withheld the US$36 million payment in May because of political wrangling over a new constitution.Kenya has long said it has met the fund’s list of demands.The currency market is keenly awaiting the IMF’s decision, which traders say will affect the Kenyan shilling either way it comes out.Rampant high-level corruption under former president Daniel arap Moi’s government led the IMF to stop lending in 2000.But after President Mwai Kibaki, elected on a reformist platform, pushed through anti-corruption legislation, the IMF changed its mind and granted the US$252,8 million, three-year loan.The decision spurred the World Bank, European Union and other international donors to resume lending.-Nampa-ReutersThe fund, often seen as a bellwether for other international donors, withheld the US$36 million payment in May because of political wrangling over a new constitution.Kenya has long said it has met the fund’s list of demands.The currency market is keenly awaiting the IMF’s decision, which traders say will affect the Kenyan shilling either way it comes out.Rampant high-level corruption under former president Daniel arap Moi’s government led the IMF to stop lending in 2000.But after President Mwai Kibaki, elected on a reformist platform, pushed through anti-corruption legislation, the IMF changed its mind and granted the US$252,8 million, three-year loan.The decision spurred the World Bank, European Union and other international donors to resume lending.-Nampa-Reuters