International financial leaders are convening in Washington this week for the Spring Meetings of the International Monetary Fund and World Bank Group as a new wave of economic uncertainty emerges from the ongoing Iran conflict.
This latest financial turbulence, characterized by rising borrowing costs, climbing energy prices, and growing inflation concerns, is creating additional strain on several developing nations including Sri Lanka, Egypt, and Pakistan that were just beginning to recover from previous economic crises.
Several countries are expected to receive particular attention during the meetings:
UKRAINE
Ukraine’s financial stability depends heavily on IMF support, having secured a two-year $8.1 billion agreement with the organization in February.
A significant external barrier to maintaining IMF assistance may have been eliminated following Sunday’s electoral defeat of Hungarian Prime Minister Viktor Orban, which is anticipated to clear the path for 90 billion euros in European Union aid to Kyiv—a requirement for the IMF program.
Nevertheless, Ukraine must still implement an extensive domestic reform agenda that includes increasing revenue generation, addressing corruption issues, and allowing greater currency exchange flexibility.
“The key question domestically is if we see more, and we do need to see more, efforts by the Ukrainians to pass these pieces of reform, and they seem like they’re going there,” said Roger Mark from investment firm Ninety One.
SENEGAL
The West African country’s economic future remains uncertain following the revelation of billions in previously undisclosed debt, which led the IMF to suspend a $1.8 billion lending program in 2024.
Discussions about a new program continue, but addressing the debt problem would likely require difficult and extended budget tightening measures that may prove challenging for government officials.
JPMorgan analysts noted in a research report: “Without the large fiscal effort, the Fund may ask Senegal for some sort of debt treatment, which has been firmly rejected by the authorities.” They added their expectation that negotiations between Dakar and the IMF would persist, stating: “Our base case of a new IMF arrangement remains tricky, with a muddle-through scenario as another option.”
MOZAMBIQUE
Mozambique has been negotiating with the IMF since mid-2025 regarding a new lending arrangement. The nation has expressed interest in restructuring its debt obligations, though specific details have not been provided. In an unexpected development, the country made early repayment of its IMF obligations in March, which was viewed as an indication of its desire to obtain new funding in the future.
Oxford Economics analyst Christian Franken commented: “Mozambique’s recent payment is a bold attempt to acquire further credit from the IMF. Indeed, we expect such a loan agreement to be finalised in Q2 2026.”
GABON
Gabon’s government officially requested IMF program assistance in March to support their reform initiatives. Extended periods of political uncertainty have placed Gabon, the second-largest economy in the CEMAC region, in financial difficulty with declining reserves.
Discussions about program details are expected to continue throughout the Spring meetings.
EGYPT
Over the past two years, Egypt has secured billions in IMF financing and foreign investment from Gulf nations. However, the country’s significant dependence on energy imports, Gulf remittances, and tourism revenue makes it susceptible to economic disruption from the Iran conflict.
Some observers anticipate Egypt will request an increase to its current IMF program, which consists of an $8 billion Extended Fund Facility and a $1.3 billion Resilience and Sustainability Facility. The Fund is scheduled to conduct a program review for the next funding installment in June, though analysts predict potential delays could postpone this until later in the year.
VENEZUELA
Venezuela’s $5 billion allocation of special drawing rights—the IMF’s reserve currency—has remained frozen since 2021 because the government was not recognized by most IMF Board member nations, a situation that continues under President Delcy Rodriguez’s administration.
However, with the Fund currently reviewing this matter, changes may be forthcoming. A data embargo that has hindered engagement with international lenders is also being gradually lifted, with Caracas publishing economic data in recent weeks. Some experts suggest this could signal preparation for an official IMF delegation visit to Caracas in the coming months.
