The executive board of the International Monetary Fund (IMF) on Friday approved $115.1 million three-year loan for the Central African Republic under an extended credit facility. The IMF board also approved the immediate disbursement of $16.4 million.
An extended credit facility allows the borrowing country to take out money over an extended period of time rather than reapplying for a loan each time it needs money. In effect, a credit facility lets a country take out an umbrella loan for generating capital over an extended period of time.
Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair at the IMF said “despite significant progress under the ECF arrangement that expired last July, the Central African Republic (C.A.R.) remains very fragile, with a volatile security environment, limited administrative capacity, poor governance, and lack of social cohesion”.
“The new three-year program supported by the IMF Extended Credit Facility (ECF) will support the implementation of the February 2019 peace agreement and of C.A.R.’s medium-term development strategy. It aims at maintaining macroeconomic stability, strengthening administrative capacity, governance and the business climate, promoting robust and sustainable growth, and reducing poverty.
“Fiscal policy will focus on enhanced revenue mobilization, spending prioritization, and strengthened public financial management. This will ensure that C.A.R.’s considerable security, social, and infrastructure spending needs are sustainably met,” he added.
Everything TODAY NEWS AFRICA holds dear has been shattered this year and the few years before now. The press is under attack. Democracy, civility, truth are all under attack. In the United States where we used to look up to, lies, anger, racism, and manipulation have compromised real news and endangered authentic journalism. With about a billion blogs on the internet or roughly a blog for every 7 persons, Rampant disinformation, partisan news sources and fake news seem to have taken over the Internet. In addition, with people reading news for free, real and necessary journalism is on the brink of extinction. With your help we can continue to put truth and honesty center stage. We want to thank all those who supported us in 2019 and ask others willing to support us to make a small donation today to continue to serve you with the answers that matter to you about Africa. Support TODAY NEWS AFRICA today with your small donation
Credit: Source link