The International Monetary Fund endorsed a new lending program under the Poverty Reduction and Growth Facility for Rwanda after it granted waivers for missed targets under an earlier agreement. These conditions include those concerning domestic arrears accumulation, priority spending and nonconcessional external debt. The IMF expects Rwanda’s growth to reach only 3 percent this year, half of that in 2005. The fund and the World Bank named the country as one of the beneficiaries of the global debt relief program. According to the agency, “although the MDRI (multilateral debt relief initiative) lowers Rwanda’s immediate risk of debt distress, Rwanda’s debt situation could quickly become unsustainable without a high and sustained level of grant financing and strong export growth.”
Source: IMF waives Rwanda’s missed targets, OKs new deal (Reuters)
