Rwanda gets $1.8m from IMF project
WASHINGTON<br><br>The International Monetary Fund (IMF) has agreed to disburse $1.8m to Rwanda after reviewing the country’s progress under its $12m loan programme.
WASHINGTON
The International Monetary Fund (IMF) has agreed to disburse $1.8m to Rwanda after reviewing the country’s progress under its $12m loan programme.
It also said the country’s economic stability had been strengthened.
The IMF also waived targets under the sixth review of the programme related to guarantees of new high-interest external debt and changes to the multiple currency practices.
The East African country has been hit hard since the beginning of 2009 by a sharp fall in export revenue and a slowdown in economic activity due to the global recession.
The IMF said Rwanda’s response to the crisis has been “broadly appropriate,†including increased fiscal spending and easing in monetary policy.
“For the 2009/10 fiscal year, the main challenge will be to cushion the impact of the global economic crisis while preserving fiscal and external sustainability.â€
It also urged the authorities to use available monetary policy instruments, including interest rate and exchange rate flexibility, to support the economy.
“The monetary programme will aim to balance the objectives of achieving single-digit inflation while providing sufficient liquidity to the banking system,†the IMF said.
A limited transfer of government deposits from the central bank to commercial banks will help sustain long-term credit in the second-half of 2009, it added.
Reuters
The International Monetary Fund (IMF) has agreed to disburse $1.8m to Rwanda after reviewing the country’s progress under its $12m loan programme.
It also said the country’s economic stability had been strengthened.
The IMF also waived targets under the sixth review of the programme related to guarantees of new high-interest external debt and changes to the multiple currency practices.
The East African country has been hit hard since the beginning of 2009 by a sharp fall in export revenue and a slowdown in economic activity due to the global recession.
The IMF said Rwanda’s response to the crisis has been “broadly appropriate,†including increased fiscal spending and easing in monetary policy.
“For the 2009/10 fiscal year, the main challenge will be to cushion the impact of the global economic crisis while preserving fiscal and external sustainability.â€
It also urged the authorities to use available monetary policy instruments, including interest rate and exchange rate flexibility, to support the economy.
“The monetary programme will aim to balance the objectives of achieving single-digit inflation while providing sufficient liquidity to the banking system,†the IMF said.
A limited transfer of government deposits from the central bank to commercial banks will help sustain long-term credit in the second-half of 2009, it added.
Reuters