Press Release No. 09/197

Press Release: IMF Executive Board Approves Extension of PRGF Arrangement for Rwanda

June 4, 2009

The Executive Board of the International Monetary Fund (IMF) has approved an extension of just over two months to Rwanda’s three-year Poverty Reduction and Growth Facility (PRGF) arrangement to allow time for a sixth review and final disbursement after delays caused in part by the global economic crisis.

The arrangement, approved with effect from June 12, 2006 (see Press Release No. 06/121), had been due to expire on June 11, 2009, but instead will now be in force until August 14, 2009. The Executive Board's decision was taken on a lapse of time basis.¹

The timetable for the sixth review under the IMF-supported program was delayed because of the need for an unscheduled fact-finding mission by Fund staff, carried out during late February and early March, following indications that the global crisis was significantly affecting Rwanda’s external and fiscal positions and its rate of growth. The extension of the PRGF arrangement provides Fund staff the opportunity to assess and discuss policy measures designed to mitigate the impact of the global crisis on Rwanda, preserve macroeconomic stability, and sustain economic growth. It also allows additional time for the completion of the 6^th and final review, and for making the final disbursement under the PRGF arrangement.

The PRGF is one of the IMF's low-interest lending facilities for low-income countries. PRGF-supported programs are underpinned by comprehensive country-owned poverty reduction strategies.

¹ The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.