| IMF Spring Meetings Go
Virtual As On Kenya Stand By Credit Facility
Negotiated
By Matthew
Russell Lee, Patreon
BBC
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Source
SDNY COURTHOUSE,
March 3 –
Before the International
Monetary Fund's February 13
embargoed briefing,
Inner City Press asked the IMF
to confirm or deny something
in the crypto-currency media,
that "IMF ADVISES EASTERN
CARIBBEAN STATES TO TRIAL
DIGITAL CURRENCY."
Inner City Press
covers not only the IMF but
also all things crypto in the
U.S. District Court for the
Southern District of New York,
for example SEC
v. Telegram and the
prosecution of Virgil
Griffith formerly of
Ethereum. See below.
On March
3, along with making its
upcoming Spring Meetings
virtual because of
coronavirus, the IMF issued
this about Kenya: "A staff
team from the IMF, led by
Benedict Clements, visited
Kenya from February 19-March
3, 2020, to conduct the
Article IV consultation
discussions with the
authorities and undertake
negotiations on a new
precautionary three-year
Stand-By Arrangement/Stand-By
Credit Facility. At the
end of the visit, Mr. Clements
made the following
statement: “The banking
sector remains
well-capitalized and liquid.
The system’s core and total
regulatory capital to
risk-weighted assets stood at
16.8 and 18.8 percent,
respectively, as of December
2019. Liquidity risk has eased
with improved distribution of
liquidity across all banks.
Lending to the private sector
started to gain momentum in
2019, reaching 7.3 percent
year-on-year in January 2020.
Credit is expected to rise
further following the removal
of interest rate controls in
November 2019. The ratio of
nonperforming loans has
declined from its peak of 12.9
percent in April 2019 to 12.0
percent in December and should
continue to fall with the
recent repayment of pending
bills, recovery efforts by
banks, and higher credit
growth. The banking system has
been gradually consolidating,
with two significant mergers
and acquisitions transactions
finalized in 2019."
Back on February
13 Inner City Press asked the
IMF, "It is reported that to
the Eastern Caribbean Currency
Union, the IMF suggests to
experiment with a common
digital currency, on a
blockchain. Can you
elaborate?"
While IMF
spokesperson Gerry Rice during
the briefing answered
Inner City Press' Somalia and
Egypt questions, it was
afterward that this answer
arrived by e-mail,
"attributable to Gerry Rice,
IMF Spokesman and Director of
Communications:
'The IMF did not
suggest to experiment with a
common digital currency. In
March 2019, the Eastern
Caribbean Central Bank (ECCB)
launched a central bank
digital currency pilot
project, using blockchain
technology, on its own
initiative.
As noted
in the IMF Concluding
Statement of the 2019
discussion on the common
policies of the Eastern
Caribbean Currency Union
(ECCU) member countries, the
digital currency could expose
the ECCB and the financial
system to various risks,
including for financial
intermediation, financial
integrity, and cybersecurity.
Given these risks of the
digital currency, the IMF
stressed that the ongoing
pilot project should proceed
cautiously.”
So there. (A
OneCoin / Bulgaria question
remains outstanding). We
appreciate the IMF's answer.
Watch this site, for IMF news
and... all things crypto,
good, bad and ugly.
***
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