IMF Expects Increased Aid Requests from Poor Countries Hit by Falling Oil Prices

International Monetary Fund (IMF) Deputy Director for Strategy, Policy and Review Sean Nolan said that difficulties are concentrated in nations that depend on exports of oil and other commodities, where prices have been depressed in recent years.

WASHINGTON (Sputnik) — Banking systems in one in five of the world’s poorest nations are beginning to experience difficulty collecting debts, with many of those nations expected to seek help from multilateral lending institutions in the near future, International Monetary Fund (IMF) Deputy Director for Strategy, Policy and Review Sean Nolan told reporters at a press conference on Thursday.

"We are seeing maybe a fifth of countries having financial sectors that are beginning to experience stress, and looking 12 to 18 months out… the banks will be under some pressure," Nolan stated. "Profits will be falling, non-performing loans will be rising."

Difficulties, Nolan explained, are concentrated in nations that depend on exports of oil and other commodities, where prices have been depressed in recent years.

"A lot of lending is concentrated in the export sectors that are getting squeezed. Financially strapped governments are not paying their suppliers, who in turn are not servicing their debts to banks," Nolan said.

Nolan noted that the IMF has yet to see a big increase in countries seeking aid, but he added, "Not yet."

He mentioned Mozambique, Yemen, Malawi and Madagascar as examples.

Nolan's remarks coincided with the release of an IMF report on the economic outlook for about 60 of the world's poorest nations.