By Enyichukwu Enemanna
The International Monetary Fund (IMF) said on Friday that it had reached a staff-level agreement for a 36-month Policy Coordination Instrument (PCI) and Resilience and Sustainability Facility (RSF) to support Rwanda’s economic policies and reforms with $310 million and help it build resilience against climate change.
Rwanda is the first African country to reach a staff-level agreement to access the Resilience and Sustainability Trust (RST)
Rwanda’s gross domestic product is forecast to grow 6.8% in 2022, the IMF said in a statement, higher than the 6% it predicted in June.
The funding agreement is subject to approval by the IMF’s executive board, which is scheduled to consider it in December this year.
The IMF said a mission to the East African country had discussed reforms to strengthen the fiscal framework, sustain effective forward-looking monetary policy and mitigate the effects of the COVID-19 pandemic.
“Addressing high inflation, long-term development needs and emerging climate risks remain a policy challenge in a highly volatile global environment,” the Fund’s statement said.
