$11 billion to be lent by IMF to sub-Saharan Africa

In a move to help reduce poverty and boost economic growth in sub-Saharan African countries the International Monetary Fund plans to provide these nations with financing in $11 billion of loans, as it was reported by the fund Managing Director Dominique Strauss-Kahn.

The ability of the IMF to provide the so-called special drawing rights to African states depends on the Group of 20 nations ratifying commitments made at a summit in London last month, said Strauss-Kahn.

Last month the fund cut its 2009 growth forecast for sub-Saharan Africa, the world's poorest region, to 1.7 per cent, down 1.8 percentage points from the previous estimate in January.

Strauss Kahn expects the G-20 nations will start meeting their commitment to increase the IMF funds three times to $US750 billion within weeks, which will enhance its ability to help counter the global financial crisis. Developed nations should implement stimulus plans and clean up company balance sheets as quickly as possible to stage a recovery by early next year, Strauss-Kahn said.

"If this is not being done in the advanced economies then the depression in those economies may be stronger than expected and the consequences on sub-Saharan Africa will also be worse than expected," he said. Slow implementation "is probably the main downside risk we have for growth next year".