6/17/08

IMF approves 1.8-million-dollar loan for Rwanda in poverty reduction


www.chinaview.cn 2008-06-17 11:19:07   Print

    WASHINGTON, June 16 (Xinhua) -- The Executive Board of the International Monetary Fund (IMF) has completed the fourth review of Rwanda's performance under a three-year poverty reduction arrangement, allowing for the disbursement of 1.8 million U.S. dollars, the IMF said in a statement Monday.

    This would bring total disbursement under the Poverty Reduction and Growth Facility (PRGF) to 9.2 million U.S. dollars.

    In completing the review, the Board granted a waiver for the non-observance of a performance criterion on net credit to the government.

    The deviation from the target was temporary, resulting from delays in disbursement from a donor and reimbursements in relation to peacekeeping activities. The Board also approved Rwanda's request for a modification of performance criteria for 2008.

    The three-year PRGF arrangement for Rwanda was approved by the Executive Board in June 2006 in an amount equivalent to 12.9 million U.S. dollars.

    Following the Executive Board's discussion, Murilo Portugal, Deputy Managing Director and Acting Chair, said, "Program performance in 2007 was satisfactory, and macroeconomic policy implementation was broadly on track."

    "For 2008, the main challenge lies in managing a grant-financed fiscal expansion without jeopardizing macroeconomic stability," he added.

    The PRGF is the IMF's concessional facility for low-income countries. It is intended that PRGF-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners.

    PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with a 5.5-year grace period on principal payments.






--
Jean-Louis Kayitenkore
Procurement Consultant
Gsm: +250-08470205
Home: +250-55104140
P.O. Box 3867
Kigali-Rwanda
East Africa
Blog: http://www.cepgl.blogspot.com
Skype ID : Kayisa66

No comments:

Post a Comment