13 November 2008

Yea, this economic problem is global

WB to triple loans to poor nations
By Walter Menya Posted Thursday, November 13 2008 at 12:36

World Bank lending to developing countries will triple to Sh7.7 trillion ($100 billion) by 2011.  Apart from the increased lending, the World Bank Group is also working to speed up grants and long-term, interest-free loans to the world’s 78 poorest countries, 39 of which are in Africa.  This follows the bank’s commitment ahead of a G20 summit this weekend to increase financial support for developing countries over the next three years driven by a desire to forestall severe effects of the global financial crisis.  This year, lending could almost triple to more than Sh2.7 trillion (US$35 billion) compared to Sh1.04 trillion ($13.5 billion) last year.

Kenya shilling loses against the dollar, seen weaker
Posted Thursday, November 13 2008 at 12:29

Kenya's shilling fell sharply against the dollar on Thursday as importers sought greenbacks and traders said they saw the local currency weakening further.  At 0756 GMT, commercial banks posted the unit at 79.80/90 against the greenback compared to Wednesday's close of 78.70/80.  Traders said the unit was likely to trade in a range of 78.00-80.40 over the coming days as dollar demand continued to outstrip inflows. They said appetite for dollars during a brisk session had come from the energy sector and grain and fertiliser importers. "There is very little to support the currency in terms of inflows, so the local unit could still cede more ground to the American currency," said Stephen Kimani, a Co-operative Bank senior dealer. Bank of Africa said it expected the shilling to continue falling in the near term as supply remains subdued. "We however anticipate the direction to change as we approach the end of the year as the corporate activity traditionally reduces towards the festive season meaning demand could reduce," the bank said in a market report.