IMF Executive Board Completes Fourth Review Under Zambia's PRGF Arrangement and Approves US$8.2 Million Disbursement
July 12, 2006Press Release No. 06/152
The Executive Board of the International Monetary Fund (IMF) completed the fourth review of Zambia's economic performance under a three-year Poverty Reduction and Growth Facility (PRGF) arrangement, which was approved on June 16, 2004 (see Press Release No. 04/117) in the amount of SDR 220.1 million (about US$326.6 million).
The completion of the review enables the release of a further SDR 5.50 million (about US$8.2 million), which will bring the total amount drawn under the arrangement to SDR 192.58 million (about US$285.8 million).
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.