Coronavirus – Rwanda: International Monetary Fund (IMF) Executive Board Approves an Additional US$111.06 Million Disbursement to Rwanda to Address the COVID-19 Pandemic

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers, but does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.
Download logo

The IMF approved US$111.06 million (SDR80.1 million), a second disbursement under the Rapid Credit Facility (RCF) bringing the total IMF COVID-19 emergency support to Rwanda to US$ 220.46 million to help urgent balance of payment needs stemming from the pandemic; Rwanda’s economy has been severely impacted by the COVID-19 pandemic with weaker domestic demand losses of revenue, and a sharp decline in exports and remittances; The additional resources under the RCF will help alleviate pressing financing needs, including for health, social protection, and supporting the most impacted sectors and vulnerable groups.

The Executive Board of the International Monetary Fund (IMF) approved the disbursement of $111.06 million (SDR80.1 million) to Rwanda under the Rapid Credit Facility (RCF). This is the second emergency disbursement since the onset of the pandemic and will help finance the country’s urgent balance of payments (BOP) and budget needs. It follows from the Executive Board’s decision on April 9, 2020 to double the annual access limit under the RCF to 100 percent of quota (see IMF Policy Paper No. 20/018 ) and brings the total IMF COVID-19 support to Rwanda to $ 220.46 million.

Rwanda’s economic outlook has worsened since the approval of the first RCF request on April 2, 2020, leading to a further downward revision in the 2020 GDP growth forecast from 5.1 to 2.0 percent due to deepening of the COVID-19 impact. The unprecedented spending needs generated by the pandemic, combined with losses of revenues, are putting significant pressures on public finances and compounding the impact of sharp declines of exports and remittances on the balance of payments. The additional disbursement under the RCF will provide much needed support for critical COVID-related spending under the government’s Economic Recovery Plan, but further support will be needed from the international community. The authorities have committed to transparency and accountability to ensure the appropriate use of emergency financing, building on their strong public financial management framework.

Following the Executive Board’s discussion, Mr. Tao Zhang, Deputy Managing Director and Acting Chair, issued the following statement:

“The COVID-19 pandemic continues to severely impact the Rwandan economy. The global and domestic macroeconomic outlook has further deteriorated. Growth projections have been revised down, and revenue losses and spending needs are more than twice the size estimated at the time of the first RCF request.

“The policy measures deployed by the authorities to respond to the pandemic and accelerate economic recovery are appropriate. The additional fiscal spending should help mitigate the impact of the pandemic while ensuring that spending is well-targeted and cost-effective so as not to crowd-out other priority areas. Additional financing from the international community remains critical to ease the adjustment burden. The authorities’ commitment to high standards of transparency and accountability in the management of emergency financial assistance is welcome.

“It will also be important to maintain data-driven monetary policy and continue to provide liquidity support to cushion the impact of the pandemic as well as step up supervision to safeguard financial stability.

“Once the crisis abates, it will be critical to adopt a credible fiscal adjustment path to maintain debt sustainability in the medium-term and preserve Rwanda’s development gains over the last two decades.”

Distributed by APO Group on behalf of International Monetary Fund (IMF).

Partner Content

GAUTRAIN – Why It Matters

Economic growth continues to be one of the focus areas for the Gauteng Provincial Government (GPG) and the Gautrain responds to that...

Tata International concludes a securitization transaction for its African Subsidiaries

UAE financial centers act as a gateway to benefit African businesses GCC, July 13th, 2020: Tata International Limited (TIL)...

Uber launches its largest region-wide initiative in partnership with Mastercard

Uber, in partnership with Mastercard to provide 120,000 free trips to frontline workers in MEA, including South Africa, Nigeria, Kenya, Ivory Coast...

Maktech’s Godwin Makyao: Now Is A Time of Entrepreneurial Opportunity in East Africa

As an executive decision-maker in both the telecommunications and tourism industries, Godwin Makyao could not have experienced a more diverse set of...

Trending Now

Nile Valley – Ethiopia starts to fill Renaissance Dam as Egypt bristles

Ethiopia’s Water Minister Seleshi Bekele confirmed on Wednesday, July 15, that the Grand Ethiopian Renaissance Dam (GERD) has...

S.Africa renewables firms look for debt savings to lower tariffs

JOHANNESBURG (Reuters) - South African renewable energy companies are looking for ways to make savings on their debt so they can help...

How secure are your social media accounts?

This morning, the world woke up to news that Twitter accounts of US prominent figures were targeted by Hackers, in a Bitcoin scam. The incident paints a very worrying picture concerning social media security. Joining CNBC Africa to discuss these security breaches in the technological space is Raj Wanniappa, CEO of Future Horizon Technologies.

Contenders begin race for WTO top job

Eight candidates are going head-to-head for the top position at the World Trade Organization with nominations coming from the United Kingdom, Mexico, Moldova, Korea, Saudi Arabia, and three entries from Africa. Trudi Hartzenberg, Executive Director of the Trade Law Centre joins CNBC Africa to talk about the chances of the African candidates vying for the position.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

- Advertisement -