Press Release: IMF to Extend 100 Percent Debt Relief to Burkina Faso Under the Multilateral Debt Relief Initiative
December 23, 2005
"Under the Multilateral Debt Relief Initiative, the IMF Executive Board has approved debt relief for Burkina Faso (see Press Release No 05/286). As part of the Initiative, the IMF will provide 100 percent debt relief on all debt incurred by Burkina Faso to the IMF before January 1, 2005 that remains outstanding. This amounts to approximately US$89 million, or US$82 million excluding remaining assistance under the Heavily Indebted Poor Countries Initiative. This debt relief should become available in early January as soon as the remaining consents of the contributors to the PRGF Trust Subsidy Account have been received. The international community has made these additional resources available to help Burkina Faso make progress toward the Millennium Development Goals (MDGs).
"Burkina Faso has qualified for IMF debt relief because of its overall satisfactory recent macroeconomic performance, progress in poverty reduction, and improved public expenditure management. The Burkinabé authorities have continued to implement sound macroeconomic policies in the face of significant exogenous shocks. Progress is also being made in strengthening public expenditure management systems. These policies have maintained macroeconomic stability, strengthened public finances, and sustained a focus on reducing poverty. Performance in these areas will help ensure that resources made available under the Multilateral Debt Relief Initiative are used effectively."
"The IMF looks forward to working with Burkina Faso to help it develop a strong and stable economy and to make sustained progress toward the MDGs," he said.