An alternative to loans to developing countries
- The first 36 billion used to bail up the falling travel giant Kenya Airways.
- Edwin Kiama has faced trials today for producing a poster that has gone viral online and was released with a $5000 bail.
- The IMF should increase the SDR (special drawing rights) for its members.
- The Kenyan government is procuring for a 700billion Eurobond loan to reach the 1.3 trillion recommended by the IMF.
Kenyans on social media networks went haywire to block international monetary funds from handing Kenya loans without auditing expenditures. They sought to sign a petition to bar world lenders from giving loans to developing countries without looking at how loans were spent. One Activist, Edwin Kiama has faced trials today for producing a poster that has gone viral online and was released with a $5000 bail. The poster read that ” the person whose photograph appears above is not liable to transact on behalf of the people of the Republic of Kenya.” This comes after massive corruption cases that have seen borrowed money enter the few rich’ pockets through evil ways.
However, the Kenyans on Twitter and other social media accounts have slowed down on the topic after they were attacked by many lawmakers claiming that the power to decide on who or who does not get the loan does not lie within their means.
On its defense, The IMF said that it only shifts in to help countries that are on the verge of debt defaulting as it helps them manage their accounts through policies that should be implemented before the loan handling.
The International Monetary fund approved the 246 billion and released the first 36 billion used to bail up the falling travel giant Kenya Airways. The traveling firm has experienced significant losses since the coronavirus epidemic and has reduced the number of employees and other subordinate staff. The remaining staff has also experienced pay cuts.
Kenyans have risen to their feet and are willing to go to the streets to protest the high cost of living; this is caused by the increase in fuel prices that have seen the falling of the dominoes where transport, food, energy, and power prices have gone up increasing the cost of food and that of living.
The Kenyan government is procuring for a 700billion Eurobond loan to reach the 1.3 trillion recommended by the IMF, to service their current debt burden. This comes when the country is facing significant investor troubles and massive unemployment.
The IMF should increase the SDR (special drawing rights) for its members, a move that is significantly contested by the United States, claiming it would make the value of the dollar depreciate. The former president’s Trump administration had also said that this would only see the USA and other developed nations receive about 70% of the cash. In comparison, the poor nations will only receive 30%. They instead sought to provide direct loans to affected countries, but considering their well-laid-out fiscal procedures and the power of a strong currency, the printing press can still go brr, brrr and make the poor nations pay for it. The increase of the SDR worked in the 2007 2008 financial crisis that saw the mortgage rates go down and the collapse of the Lehman brothers and another bailout of Goldman Sachs, which would have caused a total global financial meltdown.
written by Kinyua man
kinyua man is a novelist, poet, motivational writer , news author and academic writer.
contact: martinkinyuam12@gmail.com
