Nigeria and Angola instead have turned to the World Bank for assistance, even though the IMF is typically viewed as the world's go-to crisis lender.
Facing an estimated $15 billion budget deficit in 2016, Nigeria's finance ministry has said it is looking to borrow as much as $5 billion. It has held discussions with the World Bank, African Development Bank and China's Export-Import Bank due to their "concessionary rates of interest."
The World Bank is discussing potential financing for Nigeria and Angola through a program to support structural changes in an emerging market country's economy and government institutions.
The two sub-saharan African countries are the latest in what may become a long line of oil-exporting countries to seek financial assistance to help stem growing deficits as falling crude prices crush revenues. The IMF and World Bank are already talking to Azerbaijan about a $4 billion financing package.
On Tuesday, U.S. crude fell back below $30 a barrel, half its price in June 2015 and down from about $100 two years ago.
"The sharp decline in oil prices represents a formidable shock on the oil exporting countries of sub-Saharan Africa, especially in view of their strong reliance on oil receipts for fiscal and external revenues," an IMF spokeswoman said in a statement.
The IMF noted that despite rising deficits, several of these countries still have adequate foreign exchange reserves and low levels of overall debt. This would suggest that a balance-of-payments crisis is not imminent.
When IMF managing director Christine Lagarde visited Nigeria in January to meet new President Muhammadu Buhari, she insisted that she was not there to negotiate a loan program..
"With the exception of Chad, which already had a program in place with the IMF prior to the oil price shock, we have not received any new request for financial assistance from sub-Saharan African oil exporters," the IMF spokeswoman added. "We indeed stand ready to assist the authorities, should such a request materialize."
Although wealthier Gulf oil producers are expected to fare better due to deeper reserves, the IMF issued a warning last week to Bahrain that it, too should cut deficits now reaching 15 percent of economic output, which have weakened investor sentiment.
By: Reuters.
Review: Emerging Market Formulations & Research Unit, Flagship Records.
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