Kenya, IMF continue talks for new bailout deal

Talks between Kenya and the International Monetary Fund (IMF) for a new lending program are at a stalemate, the country's finance minister said Monday.

John Mbadi told a news briefing that the disagreement was over the classification of debt.

According to Mbadi, the international lender wants securitized loans to fund infrastructure projects classified as sovereign debt. Nairobi objects.

Mbadi said that further talks will be held to reach an agreement without specifying when.

Nairobi has sought a new bailout from the IMF after the expiration of the previous $3.6 billion deal in April.

Kenya hopes to raise $1.3 billion from a bond issuance later this month.

In October, the country managed to reprofile its $5bn loan acquired from China to build a modern railway to Yuan, there by saving the Treasury millions in interest payments.

Of Kenya’s $40.5 billion in external debt at the end of March, it owed $14.4 billion to the World Bank, $7.52 billion to eurobond investors and almost $5.04 billion to China, according to Treasury data.