Press Release: IMF Executive Board Completes Third Review Under ECF Arrangement for Burundi and Approves Disbursement of US$10 Million
February 16, 2010Press Release No. 10/40
February 16, 2010
The Executive Board of the International Monetary Fund (IMF) has completed the third review of Burundi's economic performance under the Extended Credit Facility (ECF) arrangement.1 The completion of the review was on a lapse of time basis,2 effective February 10, 2010, and enabled the immediate disbursement of an amount equivalent to SDR 6.6 million (about US$10.1 million) under the arrangement. This will bring total disbursements under the arrangement to SDR 26.4 million (about US$40.5 million).
In a difficult postconflict environment, performance under the ECF-supported program was satisfactory. Burundi met all of its quantitative performance criteria and structural reforms are on track. Most monetary and fiscal reforms have progressed well, and steady progress has been made in implementing key structural reforms.
The PRGF arrangement was approved on July 7, 2008 (see Press Release No. 08/167) for an amount equivalent to SDR 46.2 million (about US$71 million).
ECF-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 ECF-supported programs are consistent with a comprehensive framework for macroeconomic, structural, and social policies to foster growth and reduce poverty.
Burundi, which became a member of the IMF on September 28, 1963, has a Fund quota of SDR 77million (about US$118 million).
1 The Extended Credit Facility (ECF) has replaced the Poverty Reduction and Growth Facility (PRGF) as the Fund’s main tool for medium-term financial support to low-income countries by providing a higher level of access to financing, more concessional terms, enhanced flexibility in program design features, and more focused streamlined conditionality. Financing under the ECF currently carries a zero interest rate, with a grace period of 5½ years, and a final maturity of 10 years. The Fund reviews the level of interest rates for all concessional facilities every two years.
2 The Executive Board takes decisions under its lapse of time procedures when it is agreed by the Board that a proposal can be considered without convening formal discussions.