IMF agrees to release Sh56.58 billion loan to Kenya

[Nowayhaha]

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https://nation.africa/kenya/business/imf-agrees-to-release-sh56-58-billion-to-kenya--4244440

[RV Pundit]

Great work by Ruto saving the sinking ship

[Githunguri]

FOOLISH. It won't change anything.

The $410 million loan is in dollars,

STEP 1 Every month the GOK is paying foreign loans from other goverments,world bank,imf and Eurobonds. These loans are paid in dollars.

STEP 2 That means, A slight depreciation in the KES means more billions to pay the dollar debt due to weakened shilling.

STEP 3 If the shilling depreciates and KRA revenue increases, Its just plain stupidity because the increased revenue will be used to settle debt.


GOVERMENT OF FOOLS.

[Githunguri]

Bure kabisa..Such kind of stupid topics should be taken to UDA offices or Shakahola annex in Statehouse.

https://www.centralbank.go.ke/public-debt/

Our external debt is over $42BN USD...That means about $2BN-$4BN usd annually has to be repaid depending on the debt whether its 5yr 10yr or 20yr...

Any slight movement in the shilling be it 5% swells the debt by OVER 50BN which technically means that the IMF loan is stupidity and KRA has to clamp down on overtaxed businesses.

Moreover, $2 billion (Sh280 billion) Eurobond which Ruto and Uhuru issued in 2014 i think is due next year, We have over 800BN Eurobonds that he has to keep repaying until 2027...

Ruto ataona moto. Even prayers can't save him.

[RV Pundit]

Fool gov pays foreign debt in foreign currency...they dont go looking to market to buy dollars..that why its importantto get imf n world bank money.

FOOLISH. It won't change anything.

The $410 million loan is in dollars,

STEP 1 Every month the GOK is paying foreign loans from other goverments,world bank,imf and Eurobonds. These loans are paid in dollars.

STEP 2 That means, A slight depreciation in the KES means more billions to pay the dollar debt due to weakened shilling.

STEP 3 If the shilling depreciates and KRA revenue increases, Its just plain stupidity because the increased revenue will be used to settle debt.


GOVERMENT OF FOOLS.

[Githunguri]

Fool gov pays foreign debt in foreign currency

(1) Where does the foreign currency come from?

From taxes.

(2) Are taxes collected in KES or USD?

KES

(3) What happens if shillings depreciates?

Government uses more shillings to pay debt which which is in foreign currency.

(4) What does that mean?

That It is foolish for government to borrow dollars to pay foreign currency while the shilling is depreciating because the dollar denominated loan repayment will absorb all KRA increments.

JINGA KAMA MAMAKO

[RV Pundit]

Mjinga domestic debt is paid in kes.Foreign debt is paid through central bank.forex.CBK has a bank account in US fed reserves bank in new York. Gov job now is to protect the forex for debt repayment n not intervene in forex market to manage kES like uhuru was doing.Ruto job is to look for new forex loans to repay old loans.This how survive the crisis..Ghana made mistakes to waste their forex defending cedis..and had to default. RUTO will not intervene directly in forex market and will jealousy guard central bank forex..expect kES to continue to slide.Ruto gov will continue to look for gov forex and delink it from falling KES.

Fool gov pays foreign debt in foreign currency

(1) Where does the foreign currency come from?

From taxes.

(2) Are taxes collected in KES or USD?

KES

(3) What happens if shillings depreciates?

Government uses more shillings to pay debt which which is in foreign currency.

(4) What does that mean?

That It is foolish for government to borrow dollars to pay foreign currency while the shilling is depreciating because the dollar denominated loan repayment will absorb all KRA increments.

JINGA KAMA MAMAKO

[Githunguri]

CBK has a bank account in US fed reserves bank in new York

Where does it get the money?

.Ruto job is to look for new forex loans to repay old loans.

Repay with what from where?

Ruto gov will continue to look for gov forex and delink it from falling KES.[quote

How?

[RV Pundit]

CBK has a bank account in US fed reserves bank in new York

Where does it get the money?

.Ruto job is to look for new forex loans to repay old loans.

Repay with what from where?

Ruto gov will continue to look for gov forex and delink it from falling KES.[quote

How?

Grow some brain..Ruto knows he needs forex of x amount to repay foreign loans..and is looking for then from imf,World Bank and syndicated commercial loans.We have huge 2.4B dollars principal repayment next year...from Eurobond...and kenya will survive this global  n local crisis. For now gov has to try floating another Eurobond to refinance the old one.

[Githunguri]

CBK has a bank account in US fed reserves bank in new York

Where does it get the money?

.Ruto job is to look for new forex loans to repay old loans.

Repay with what from where?

Ruto gov will continue to look for gov forex and delink it from falling KES.[quote

How?

Grow some brain..Ruto knows he needs forex of x amount to repay foreign loans..and is looking for then from imf,World Bank and syndicated commercial loans.We have huge 2.4B dollars principal repayment next year...from Eurobond...and kenya will survive this global  n local crisis. For now gov has to try floating another Eurobond to refinance the old one.

Jinga kama mamako.

Of course he will borrow from imf world bank etc and pay or sell another eurobond to repay the eurobond..everybody knows that

But he has to use KRA revenues to repay interest on that eurobond..KRA revenues increase,shlling deprectiates..the increased revenues are used to pay the increased interest repayment in dollars,How stupid is that?

UMBWA

[RV Pundit]

Kra revenue will pay domestic debt.If Ruto is smart...he  will be looking for new foreign loan to repay old foreign debt.Domestic he can always print n pay.