IMF Executive Board Approves Arrangement Under the ECF for Solomon Islands

IMF Executive Board Approves a Three-Year Arrangement Under the Extended Credit Facility (ECF) for Solomon Islands and US$0.228 Million Disbursement

The Executive Board of the International Monetary Fund (IMF) approved on December 7, 2012 a three-year arrangement under the Extended Credit Facility (ECF)1 for Solomon Islands, in an amount equivalent to SDR 1.04 million (about US$ 1.59 million), or 10 percent of the countryā€™s quota.

The Boardā€™s decision, which was taken on a lapse of time basis,2 enables the immediate disbursement of an amount equivalent to SDRĀ 0.149 million (US$ 0.228 million).

Building on the success of the program supported by a Standby Credit Facility arrangement, which expired on December 5, 2012, the ECF-supported program will be instrumental in tackling deep institutional and structural issues and is seen by the authorities as critical for supporting Solomon Islands, which remains vulnerable to external shocks associated with its undiversified export base, strong dependence on aid, and frequent natural disasters.


1 The Extended Credit Facility (ECF) has replaced the Poverty Reduction and Growth Facility (PRGF) as the Fundā€™s main tool for medium-term financial support to low-income countries by providing a higher level of access to financing, concessional terms, enhanced flexibility in program design features, and more focused streamlined conditionality. Financing under the ECF carries a zero interest rate, with a grace period of 5Ā½ years, and a final maturity of 10 years (http://www.imf.org/external/np/exr/facts/ecf.htm). The Fund reviews the level of interest rates for all concessional facilities every two years.

2 The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.

 

About The Author

Sometimes when a business is growing, it needs a little help.

Right now Kaniva News provides a free, politically independent, bilingual news service for readers around the world that is absolutely unique. We are the largest New Zealand-based Tongan news service, and our stories reach TongansĀ  wherever they are round the world. But as we grow, there are increased demands on Kaniva News for translation into Tongan on our social media accounts and for the costs associated with expansion. We believe it is important for Tongans to have their own voice and for Tongans to preserve their language, customs and heritage. That is something to which we are strongly committed. Thatā€™s why we are asking you to consider sponsoring our work and helping to preserve a uniquely Tongan point of view for our readers and listeners.

spot_imgspot_imgspot_imgspot_img

Latest news

Related news