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Rwanda, IMF reach staff-level agreement for $310 million funding to support economic reforms

Published

2 years ago

October 7, 2022

The Rwandan government has reached a state-level agreement with the International Monetary Fund (IMF), to access $310 million funding to “support the country’s economic reforms and help it build resilience against climate change.”

The agreement which was reached on Friday, is, however, subject to approval by the IMF’s executive board which is scheduled to consider it in December this year.

A press release by the IMF posted on its website said a mission to the East African country had “discussed reforms to strengthen the fiscal framework, sustain effective forward-looking monetary policy and mitigate the effects of the COVID-19 pandemic.”

“An International Monetary Fund (IMF) mission, led by Haimanot Teferra, held meetings with the Rwandan authorities in Kigali during September 26 – October 7, 2022, to discuss the authorities’ request for support under the Resilience and Sustainability Facility (RSF) and an accompanying new 36-months Policy Coordination Instrument (PCI),” the statement said.

“At the conclusion of the Rwandan authorities and an IMF staff team reached a staff-level agreement on policies and reforms under a new 36-month Policy Coordination Instrument and Resilience and Sustainability Facility, with a requested access of 150 percent of quota (SDR 240.3 million).

“The PCI would support the authorities in their efforts to build on the progress in macroeconomic, fiscal, and financial reforms started under the PCI that was approved in 2019.

“The Rwandan economy has been staging robust growth despite the unfavorable global environment. Staff estimates GDP growth at 6.8 percent in 2022.

“The financial system continues to be sound, liquid and well capitalized. The exchange rate has remained stable while reserves stood comfortably above 4 months of prospective imports,” it added.

Related Topics:Featured Funding IMF loan Rwanda

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IMF mission concludes 4th loan program assessment in Egypt

Published

19 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.