Press Release: IMF Executive Board Completes Second Review Under the Kyrgyz Republic's PRGF Arrangement and Approves US$1.86 million Disbursement
May 12, 2006Press Release No. 06/97
The Executive Board of the International Monetary Fund (IMF) has completed the second review of the Kyrgyz Republic's performance under its economic reform program supported by a three-year Poverty Reduction and Growth Facility (PRGF) arrangement. Completion of the review was on a lapse of time basis on May 5, 2006 and enabled the Kyrgyz Republic to draw an amount equivalent to SDR 1.27 million (about US$1.86 million) under the arrangement.
The IMF's Executive Board approved the three-year arrangement on February 23, 2005 (see Press Release No. 05/40) for an amount equivalent to SDR 8.88 million (about US$13.6 million). Drawing the amount made available by completion of the second review will bring total disbursements under the arrangement to SDR 3.79 million (about US$5.59 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 each country's 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.