Press Release No. 05/152

Press Release: IMF Executive Board Extends the Democratic Republic of the Congo's Three-Year PRGF Arrangement

June 28, 2005

On June 7, 2005 the Executive Board of the International Monetary Fund (IMF) extended the Poverty Reduction and Growth Facility (PRGF) arrangement for the Democratic Republic of the Congo until October 31, 2005 to provide additional time for the completion of the fifth review.

The Executive Board had approved on June 12, 2002, a three-year SDR 580 million (about US$848.6 million) arrangement under the PRGF for the Democratic Republic of the Congo (see Press Release No. 02/27).

The PRGF is the IMF's concessional facility for low-income countries. PRGF-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners and articulated in the Poverty Reduction Strategy Paper (PRSP). This is intended to ensure that PRGF-supported programs are consistent with a comprehensive framework for macroeconomic, structural, and social policies to foster growth and reduce poverty. PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with a 5½-year grace period on principal payments.