Eswatini: rate gap with South Africa could make credit more expensive
The IMF says a policy rate below South Africa's could push banks to widen their margins. The gap currently stands at 0.25 percentage point.
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The IMF says a policy rate below South Africa's could push banks to widen their margins. The gap currently stands at 0.25 percentage point.
The IMF cuts its 2026 regional forecast by 2.7 percentage points to a 1.3% contraction. The impact differs between oil exporters and importers.
The bond document published on 19 October leaves room for revisions to the audit. It also presents an estimate of nearly 1,199 billion CFA francs in arrears at the end of June.
The expected decline in 2026 narrows room to respond to energy and climate shocks. The Fund recommends targeting support to households and protecting productive investment.
Rising interest rates are adding to debt-service costs, while low-income countries already spend more than 15% of their tax revenue on interest payments.
The US official cites a goal of less than a year, with no fixed timetable.
The institution slightly improves its forecast for 2026, while estimating that rising food and energy prices risk worsening poverty and food insecurity.
The group calls on the IMF and the World Bank for more concessional financing as interest charges erode budget room.
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