Africa needs $25 Billion Bailout

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Africa: Continent Needs U.S.$25 Billion Bailout, Says IMF

The International Monetary Fund (IMF) has estimated $25 billion as the funds required to bail out poor countries of sub-Saharan Africa from the ravaging global financial crisis.

But the Federal Government is mounting close surveillance on the nation's 24 banks to ward off distress that may spark off internally or externally as a result of turmoil and in the post-crisis period, according to the Minister of Finance, Dr. Mansur Muhtar.

The IMF, which is the private sector arm of the World Bank, warned that the $25 billion figure is only a conservative estimate as the situation on ground indicates that more countries will be more deeply affected, outside the 20 countries earlier identified by the body as much hit by the crisis.

"The IMF study finds that more than 20 countries are particularly vulnerable to the unfolding crisis. At least US$25 billion in urgent concessional financing will be needed this year in the most affected countries, but much more may be needed given the heavy downside risks to the global economic outlook, and the prospect of more countries being affected as the crisis deepens," said IMF Managing Director, Dominique Strauss-Kahn. He warned that the number of vulnerable countries could double, raising additional financing needs to $140 billion.

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