IMF approves $109.4 million credit to Rwanda to fight against COVID-19

EYEAFRICA TV: Kigali, Rwanda: The Coronavirus pandemic could derail the economic growth of the country from the projected 8% to 5.1 % in the year 2020.

The ministry of finance and economic planning say that the approved International Monetary Fund of $109.4 million credit to Rwanda will go a long way in the fight against COVID-19 and it its repercussions on the country.

COVID-19 pandemic has engrossed the world and affected various sectors that has seen the world worry about the finances as most countries and governments have engaged financially to wage war on this. This is echoed by Rwanda’s minister for finance Dr. Uzziel NDAGIJIMANA.

“Our national budget will be affected by this in two ways, the money that gets to us through taxes will reduce greatly because the businesses have been affected even in terms of imports. The second void is a lot of money has been used in the emergency, we went back to our books.. we know that last year we were at 9.4% in terms of economic growth but we are projecting a decline to 5.1 % this year,” said Dr. Uzziel NDAGIJIMANA.

With the aim of helping Rwanda fight the pandemic, The International Monetary Fund (IMF) said Thursday that it had approved $109.4 million credit to Rwanda. This is according to the minister of finance Dr. Uzziel NDAGIJIMANA will go a long way in streamlining the budget as the country continues to fight the pandemic.

This money is not for any project but it will go straight to the national budget as most of the money is going to the health sector so that we get all the necessary equipment’s and also help our citizens.

The government explains that this money is credit to the country but is more like a grant as it has 0% interest and will be paid 5 years from now for a period of 10 years.

Rwanda is the first African country to receive this credit .1 week since it’s application. Economic experts say this indicates that international institutions have faith in the country.

The government is also in talks with other financial institutions applying for credit or grants as they seek to fill the void in the national budget. Finance Minister Dr. Uzziel NDAGIJIMANA, says all this is done with consideration of what the country can afford and that it will not be burden for the country.

This is not a burden to the country because the burden is usually on the interest the country has to pay and here there is 0 interest the other thing is that we will pay this back in 10 years and that’s 5 years from now and by then our economy will be strong enough and we will be able to pay back this. The other thing is that all this is still in our borrowing bracket.

The IMF has also exempted Rwanda from the 68 million usd that the country was to pay in 2 years’ time.

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