Rwanda: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Rwanda
IMF Staff Country Reports, April 16, 2020
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- Rwanda: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Rwanda
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Bibliographic details
- Published: April 16, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513541136.002
Summary and context
- The paper highlights Rwanda’s Request for Disbursement Under the Rapid Credit Facility (RCF).
- The economic impact of the coronavirus disease 2019 pandemic is rapidly unfolding with the near-term outlook deteriorating quickly.
- This deterioration has given rise to significant fiscal and external financing needs.
- The authorities have acted fast by putting in place measures to help contain and mitigate the spread of the disease.
Role of RCF financing
- RCF funds will support the authorities’ efforts by:
- backstopping the decline in international reserves, and
- providing financing to the budget for increased spending aimed at containing the epidemic and mitigating its economic impact.
- The additional IMF financing also ought to help catalyze further assistance from the international community, preferably in the form of grants.
IMF monitoring and support
- The IMF continues to monitor Rwanda’s situation closely and stands ready to provide policy advice and further support as needed.
Monetary policy recommendations
- Monetary policy needs to be data-driven.
- The central bank should stand ready to provide additional liquidity support if warranted.
- A flexible exchange rate should be maintained as a shock absorber.
Financial sector measures and recommendations
- The National Bank of Rwanda has taken various measures to help maintain the health of the financial sector.
- It should continue to show flexibility, while:
- encouraging prudent loan restructuring, and
- stepping up reporting requirements.
Content in this bundle
- 1rwaea2020002