Press Release: IMF Executive Board Completes the Fifth Review of Rwanda's PRGF Arrangement and Approves US$800,000 Disbursement
September 8, 2005
On August 26, 2005, the Executive Board of the International Monetary Fund (IMF) has completed the fifth review of Rwanda's economic performance under the Poverty Reduction and Growth Facility (PRGF) arrangement. As a result, Rwanda will be eligible to draw an amount equivalent to SDR 0.57 million (about US$800,000), bringing the total amount disbursed under the arrangement to SDR 3.43 million (about US$5.1 million). Rwanda's PRGF arrangement was approved on August 12, 2002 (see Press Release No. 02/36), for SDR 4 million (about US$5.9 million).
The Board has also granted waivers for the nonobservance of the end-December 2004 quantitative performance criterion on priority expenditures, and the continuous performance criterion on the non-accumulation of external arrears.
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.