Press Release: IMF Approves Compensatory Drawing for Rwanda
October 27, 1995The International Monetary Fund (IMF) today approved a credit for Rwanda equivalent to SDR 8.9 million (about $13 million) under the compensatory and contingency financing facility (CCFF). The drawing relates to a shortfall in Rwanda's merchandise export earnings, in particular for coffee and tea for the year ended March 1995, as a result of the civil war.
Furthermore, the IMF agreed to establish an account to administer grants contributed by the Netherlands, Sweden, and the U.S., for the purpose of reducing charges on Rwanda's CCFF drawing to 0.5 percent per annum. The grant contributions will total about SDR 1.5 million (about $2.3 million). Article V, Section 2(b) of the IMF Articles of Agreement authorizes the IMF, if requested to do so, to perform financial and technical services for member countries, including the administration of resources contributed by members.
Following the end of hostilities in July 1994 that resulted in an unprecedented loss of human life, substantial disruption of social and economic infrastructure, and a decline of over one half in aggregate output, the Government quickly embarked upon a program of national reconciliation, rehabilitation, and economic recovery. The macroeconomic component of this program was prepared in consultation with the staff of the IMF and is principally aimed at restoring financial stability and reviving economic activity. The IMF has also played a major role in coordinating technical assistance efforts aimed at restoring Rwanda's capacity in macroeconomic management.
Rwanda joined the IMF on September 30, 1963, and its quota1 in the IMF is SDR 59.5 million (about $89 million). Rwanda's outstanding use of IMF credit currently totals SDR 8.8 million (about $13 million).