IMF Executive Board Concludes Reviews of Rwanda’s Policy Coordination Instrument and Arrangement under Resilience and Sustainability Facility, and the Stand-by Credit Facility Arrangement | IMF
Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the third reviews under the Policy Coordination Instrument (PCI) and the arrangement Under the Resilience and Sustainability Facility (RSF), and first review under the Standby Credit Facility (SCF) arrangement with Rwanda.[1] The Executive Board’s decisions were taken without a meeting.[2] With this review, about US$ 76.2 million (SDR 57.5 million) under the RSF and US$ 88.4 million (SDR 66.75 million) under the SCF become available.
Despite challenging external conditions , Rwanda's economy maintains robust growth. Real GDP growth surpassed expectations in 2023 at 8.2 percent, with services, construction, and post-flood recovery in food crop production key contributors. While fiscal consolidation may temporarily dampen growth, a rebound to 7.3 percent is anticipated in the medium term. Inflation has declined steadily since January 2023 to 4.2 percent in March, thanks to a slowdown in food prices and core inflation. The current account deficit widened more than expected in 2023, but international reserves remain adequate at about 4.1 months of imports at end-2023.
Going forward, the policy mix should prioritize macroeconomic and financial stability, fiscal sustainability, and the restoration of buffers. A carefully planned fiscal stance is needed to mitigate the impact of the 2023 floods while maintaining a credible and balanced fiscal consolidation over the medium term. Monetary policy should target inflation within the desired range, while maintaining exchange rate flexibility to manage external shocks. Furthermore, vigilant oversight of financial stability risks, particularly concerning large exposures and rapid credit growth, is important.
Program performance remains strong. Under the PCI/SCF, all quantitative targets were met, and reforms on the social safety net and spending rationalization were implemented. RSF measures to implement climate budget tagging, integrate climate risks into fiscal planning, and strengthen disaster risk management were also implemented, contributing to Rwanda’s resilience to climate shocks and positioning the country as a leader in regional climate initiatives.
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The Ukrainian Ministry of Foreign Affairs on Tuesday expressed gratitude to the Georgian Government for sending high-capacity generators to Ukraine, emphasising the importance of the assistance amid ongoing Russian attacks and severe winter conditions.
The Ministry noted that Georgia has sent 27 high-capacity generators to Ukraine since the beginning of Russia’s full-scale invasion, along with an additional nine generators specifically designated for the Sumy region.
“We sincerely thank the Government of Georgia, which, since the beginning of the Russian Federation’s full-scale invasion, has sent 27 high-capacity generators to Ukraine, as well as 9 generators to the Sumy Oblast”, the statement said.
