NAIROBI, 13 August (IRIN) - The executive board of the IMF has approved a US $5-million "arrangement" under its Poverty Reduction and Growth Facility (PRGF) for Rwanda, the IMF reported in a press release on
Monday.
"The board determined that Rwanda's Poverty Reduction Strategy Paper
provides a sound basis for Fund concessional financial assistance," the
IMF reported. 
Under the arrangement, Rwanda would be able to draw some $760,000
immediately, the IMF added.  The board also approved an additional
interim aid of about $1 million for Rwanda, under the IMF's Enhanced
Heavily Indebted Poor Country Initiative.
The PRGF is the IMFs concessional facility for low-income countries. Its
ultimate aim is that PRGF-supported programmes aimed at economic growth
and poverty reduction would be based on homegrown poverty reduction
strategies adopted by involving civil society and development partners.
Loans obtained under the PRGF carry an interest of 0.45 percent and are
repayable over 10 years, with a five and a half-year grace period. 
The announcement comes as greater momentum has gathered recently in the
search for peace in Africa's Great Lakes region - between Rwanda and DRC
on the one hand, and among Burundi's warring factions on the other.
The press release quoted IMF Board Acting Chairman Eduardo Aninat as
saying after the board's discussions on Rwanda that members were
encouraging Rwandan authorities and all parties in the Great Lakes to
buttress progress toward peace and durable stability.
"Achieving sustainable growth and reducing poverty in the period ahead
will depend crucially on rapid progress in resolving the security
situation in a just and durable manner, thus laying the foundation for
resources to be channelled toward building productive capacity," he
said.
U N I T E D  N A T I O N S
Office for the Coordination of Humanitarian Affairs (OCHA)
Integrated Regional Information Network (IRIN)