The IMF board has delayed a $238mn loan to Kenya. While the board did not cite the reason for the delay, Bloomberg reports that the board meeting is only expected in the “coming weeks” to give final approval. The expected loan was part of a $2.34bn extended credit facility (ECF) and extended fund facility (EFF) by the multilateral lender. Meanwhile due to the delay, Kenya may need to find alternative funding sources to finance its current budget. Earlier in June, Kenya called off its plans to sell offshore bonds in 2022 due to a surge in yields, which has increased debt costs. It added that it will seek to borrow about $1bn from banks by end-June instead.
Kenya’s dollar bonds are trading lower with its 6.3% 2034s down over 1 point to 65.36 cents on the dollar.
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