Press Release: IMF to Extend 100 Percent Debt Relief to Niger Under the Multilateral Debt Relief Initiative
IMF News, December 23, 2005
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Bibliographic details
- Published: December 23, 2005
Decision and scope
- The IMF Executive Board has approved debt relief for Niger under the Multilateral Debt Relief Initiative (Press Release No. 05/286 referenced).
- The IMF will provide 100 percent debt relief on all debt incurred by Niger to the IMF before January 1, 2005 that remains outstanding.
Amounts and timing
- Amount of debt relief: approximately US$111 million.
- Amount excluding remaining assistance under the Heavily Indebted Poor Countries Initiative: US$86 million.
- Availability: 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.
Rationale for qualification
- Niger qualified for IMF debt relief because of:
- overall satisfactory recent macroeconomic performance,
- progress in poverty reduction,
- improvements in public expenditure management.
- Since 2000:
- economic growth has strengthened, albeit uneven because of periodic adverse exogenous shocks,
- inflation has remained under control.
- Despite difficult circumstances, including the drought in 2004:
- the government has established a good record in implementing its Poverty Reduction Strategy,
- this has resulted in improving social indicators, and significant progress in expanding the poor's access to education and clean water,
- progress is being made in strengthening public expenditure management systems.
Expected use and objectives
- The international community has made these additional resources available to help Niger make progress toward its Millennium Development Goals (MDGs).
- The IMF expects resources made available under the Multilateral Debt Relief Initiative to be used effectively given the assurances from Niger's performance in the areas cited.
- The IMF looks forward to working with Niger to help it develop a strong and stable economy and to make sustained progress toward the MDGs.
Press Release No. 05/300 — December 23, 2005