{
  "title": "IMF Reaches Staff-Level Agreement on the First Review under the Extended Credit Facility Arrangement for Rwanda",
  "publication": "IMF News, October 6, 2026",
  "sourceUrl": "https://www.imf.org/en/news/articles/2026/10/05/pr26321-rwanda-ecf-review",
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  "summary": "IMF staff and the Rwandan authorities have reached a staff-level agreement on policies and reforms needed to complete the first review of Rwanda’s Extended Credit Facility (ECF) arrangement. Upon completion of the review by the IMF Executive Board, Rwanda will have access to approximately US$35.",
  "publishDate": "2026-10-06",
  "sections": [
    {
      "heading": "Staff-level agreement and financing access",
      "content": "- IMF staff and the Rwandan authorities reached a staff-level agreement on policies and reforms needed to complete the first review of Rwanda’s Extended Credit Facility (ECF) arrangement.\n- Upon completion of the review by the IMF Executive Board, Rwanda will have access to approximately US$35.7million.\n- The staff-level agreement is subject to approval by IMF Management and the IMF Executive Board.\n- Completion of the review would give Rwanda access to SDR 26.433 million, equivalent to about US$35.7million, under the ECF-supported arrangement."
    },
    {
      "heading": "Macroeconomic performance and key indicators",
      "content": "- Real GDP growth reached 9.7 percent in the first half of 2026.\n- Real GDP growth is projected at 7.8 percent in 2026 and 7.0 percent in 2027.\n- Headline inflation reached 15.7 percent in August 2026.\n- The National Bank of Rwanda’s medium-term inflation target is 5 percent.\n- Foreign exchange reserves covered about four months of imports.\n- Fiscal deficit fell to 4.8 percent in fiscal year 2025/26.\n- All end-June quantitative performance criteria under the program were met."
    },
    {
      "heading": "Drivers, shocks, and risks",
      "content": "- Strong export and remittance inflows helped narrow the current account deficit.\n- Inflationary pressures reflect pre-existing price pressures and spillovers from the war in the Middle East, including higher international oil and fertilizer prices.\n- Downside risks identified: continued volatility in global commodity prices, heightened trade and geopolitical tensions, climate shock related to El Niño, and tighter global financing conditions.\n- Upside potential: the new petroleum procurement framework led by the Rwanda National Energy Company (RNEC) could improve fuel supply security and make fuel procurement costs more competitive."
    },
    {
      "heading": "Program implementation, reforms, and conditionality",
      "content": "- Program implementation has been satisfactory according to IMF staff.\n- Authorities are advancing all structural benchmarks, including:\n  - reforms to strengthen the investment framework;\n  - measures to deepen the domestic securities market;\n  - measures to deepen the foreign exchange market.\n- Because inflation exceeded the program’s consultation band, the Monetary Policy Consultation Clause will be discussed at the IMF Executive Board."
    },
    {
      "heading": "Policy recommendations and priorities",
      "content": "- Monetary policy:\n  - The National Bank of Rwanda (NBR) has tightened monetary policy.\n  - An appropriately tight, data-driven monetary policy stance should remain focused on returning inflation toward the NBR’s medium-term target of 5 percent and preventing inflation increases from spreading through the economy.\n- Fiscal policy:\n  - Sustained fiscal consolidation is critical to preserve a moderate risk of debt distress and rebuild policy buffers.\n  - Fiscal consolidation should be supported by stronger domestic revenue mobilization, spearheaded by the expected second Medium-Term Revenue Strategy (MRTS-2).\n  - Careful prioritization of foreign-financed capital expenditure is needed while protecting social and other priority spending.\n  - Better public investment management and closer monitoring of fiscal risks are recommended to reinforce fiscal consolidation efforts.\n- Continued IMF support:\n  - The IMF will continue to support Rwanda’s efforts to preserve macroeconomic stability, reduce inflation, and advance priority reforms."
    }
  ],
  "bullets": [
    "IMF staff and the Rwandan authorities reached a staff-level agreement on policies and reforms needed to complete the first review of Rwanda’s Extended Credit Facility (ECF) arrangement.",
    "Upon completion of the review by the IMF Executive Board, Rwanda will have access to approximately US$35.7million.",
    "The staff-level agreement is subject to approval by IMF Management and the IMF Executive Board.",
    "Completion of the review would give Rwanda access to SDR 26.433 million, equivalent to about US$35.7million, under the ECF-supported arrangement.",
    "Real GDP growth reached 9.7 percent in the first half of 2026.",
    "Real GDP growth is projected at 7.8 percent in 2026 and 7.0 percent in 2027.",
    "Headline inflation reached 15.7 percent in August 2026.",
    "The National Bank of Rwanda’s medium-term inflation target is 5 percent.",
    "Foreign exchange reserves covered about four months of imports.",
    "Fiscal deficit fell to 4.8 percent in fiscal year 2025/26.",
    "All end-June quantitative performance criteria under the program were met.",
    "Strong export and remittance inflows helped narrow the current account deficit.",
    "Inflationary pressures reflect pre-existing price pressures and spillovers from the war in the Middle East, including higher international oil and fertilizer prices.",
    "Downside risks identified: continued volatility in global commodity prices, heightened trade and geopolitical tensions, climate shock related to El Niño, and tighter global financing conditions.",
    "Upside potential: the new petroleum procurement framework led by the Rwanda National Energy Company (RNEC) could improve fuel supply security and make fuel procurement costs more competitive.",
    "Program implementation has been satisfactory according to IMF staff.",
    "Authorities are advancing all structural benchmarks, including:",
    "Because inflation exceeded the program’s consultation band, the Monetary Policy Consultation Clause will be discussed at the IMF Executive Board.",
    "Monetary policy:",
    "Fiscal policy:",
    "Continued IMF support:"
  ],
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  "generatedAtUtc": "2026-10-07T00:37:24.469Z"
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