KIGALI, Oct 24 (NNN-KBC) — Rwanda expects to receive a total of $184.9 million from the International Monetary Fund (IMF) in the ongoing programmes with the multilateral lender.
This follows completion of a staff-level review with the fund on policies needed to complete the fourth reviews of Rwanda’s Policy Coordination Instrument and program under the Resilience and Sustainability Facility (RSF) and the second review of the Stand-by Credit Facility (SCF) arrangement.
The decision by the executive board expected in December will allow the East African Community (EAC) member state to access $95.9 million under the RSF and $89 million under the SCF.
According to IMF, despite Rwanda’s growth being among the strongest in the continent, the country still faces high fiscal and external vulnerabilities.
“Inflation stabilized within the central bank’s target range, owing to appropriately tight monetary policy and favorable developments in food prices. The current account deficit widened due to high capital goods imports and low coffee exports. The Rwandan franc depreciated by 6.6pc against the US dollar in January-October, a necessary step towards facilitating the much-needed external adjustment,” said Ruben Atoyan, IMF staff team lead.
IMF says despite prevailing macroeconomic conditions, the country has met objectives under the PCI/SCF arrangement.
“All quantitative targets were met, and reforms to enhance the transparency of public investments and strengthen FX market functioning are progressing well.
Rwanda’s real GDP is projected to grow by 8.3pc this year, supported by strong performance of the services, and construction sectors, and recovery in food crop production. — NNN-KBC