International Groups Oppose Loan To Equatorial Guinea

A loan of $280 million from the International Monetary Fund (IMF) to oil-rich Equatorial Guinea has caused debates and furore from rights monitor groups who quoted vast corruption in the central African country.

Groups like Amnesty International, Oxfam, and Human Rights Watch have opposed the loan until the country, under the rulership of President Teodoro Obiang Nguema, who has been in power for over 40 years, restores its governmental sanity.

“The arrangement is intended to support the authorities’ three-year economic program, which aims at further reducing macroeconomic imbalances and addressing financial sector vulnerabilities; improving social protection and human capital development; promoting economic diversification; and fostering good governance, increasing transparency and fighting corruption,” IMF said on Thursday.

The loan will be released in fragments; $40.4 million of the $280 million dollars will be immediately released, and the rest will be released over a three-year period, this is according to the money-lending body.

The organization's Managing Editor, Tao Zhang said, “In recent years, the Equatoguinean economy has been impacted by a sharp decline in oil prices and a secular decline in hydrocarbon output, which led to large macroeconomic imbalances and negative economic growth.

“The economy has also been affected by longstanding governance and corruption problems.

“While the authorities have taken steps to address these challenges, a more comprehensive approach is needed to tackle them effectively and achieve sustainable and inclusive growth.”

According to a researcher at the Human Rights Watch, “The IMF loan should force Equatorial Guinea to undertake deep reforms in the way the country exploits its natural resources."

As is on offer across the continent, corruption has impeded the growth of the oil-rich Equatorial Guinea.

Teodorin Obiang Nguema, the country's Vice President, is known for his lavish spending style, owning numerous houses across the world in not-so-cheap addresses.

The president is also known for stifling opposition and aiding corruption, leaving the majority of the population in need.