- IMF and Rwanda have agreed to a $262 million 14-month credit facility to alleviate balance of payment pressures resulting from climate-related shocks.
- The agreement includes policies to complete the second review of Rwanda’s existing policy coordination instrument, fostering economic stability.
The International Monetary Fund (IMF) staff and the authorities of Rwanda have agreed on a new 14-month credit facility valued at $262 million. This financing arrangement alleviates the pressures on Rwanda’s balance of payments from climate-related shocks.
The agreement reached between the IMF staff and Rwandan authorities also encompasses policies to successfully conclude the second review of Rwanda’s existing policy coordination instrument. The nation has been grappling with challenges, including recurrent droughts, severe floods that struck in May 2023, and the tightening of global financing conditions.
These issues have compounded the economic difficulties arising from the enduring legacy of the COVID-19 pandemic. The newly established credit facility will play a vital role in supporting Rwanda’s efforts to rebuild and recover from the flood-related damages incurred. It will offer a lifeline to this African nation as it addresses a confluence of pressing economic challenges.