News Brief: IMF Completes Evaluation of Performance Under Chad's PRGF Arrangement and Approves US$3 Million Disbursement
April 18, 2002
The Executive Board of the International Monetary Fund (IMF) has completed the evaluation of Chad's performance under the Poverty Reduction and Growth Facility (PRGF) arrangement. As a result, Chad will be able to draw up to SDR 2.6 million (about US$3 million).
Chad's three-year arrangement was approved on January 7, 2000 (see Press Release 00/1) for SDR 36.4 million (about US$46 million). This amount was augmented to SDR 47.6 million (about US$60 million). So far, Chad has drawn SDR 29.20 million (about US$37 million) under the arrangement (see Press Release 01/24).
The PRGF is the IMF's concessional facility for low-income countries. It is intended that PRGF-supported programs will in time be based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners, and articulated in a Poverty Reduction Strategy Paper (PRSP). This is intended to ensure that PRGF-supported programs are consistent with a comprehensive framework for macroeconomic, structural, and social policies to foster growth and reduce poverty.
PRGF loans carry an annual interest rate of 0.5 percent, and are repayable over 10 years with a 5 ½-year grace period on principal payments.