The Executive Board of the International Monetary Fund (IMF) completed today the fourth review of Djibouti’s economic performance under the Extended Credit Facility arrangement (ECF).1 The Board’s decision, which was taken on a lapse of time basis,2 enables the immediate disbursement of SDR 1.476 million (about US$2.35 million), bringing total disbursements under the program to SDR 9.768 million (US$15.53 million).
The Board also granted the authorities’ request for two waivers of nonobservance of the continuous performance criteria on the non-accumulation of domestic arrears and the non-accumulation of external arrears on the grounds of the minor deviation from the program objectives and the corrective measures undertaken by the authorities. These focus mainly on improvements in liquidity management and a more rigorous execution of external debt service payments. The Djibouti authorities remain committed to the program, especially fiscal discipline and structural reforms in tax revenue, public financial management, bank supervision, and central bank governance.
The ECF arrangement for Djibouti was approved in September 17, 2008 (see Press Release No 08/211) for an amount to SDR 12.72 million (about US$ 20.22, or 80 percent of the country’s quota in the Fund). On January 7, 2011, the ECF arrangement was extended by 9 months, through June 16, 2012 (see Press Release No. 11/3).
1 The Extended Credit Facility (ECF) has replaced the Poverty Reduction and Growth Facility (PRGF) as the Fund’s main tool for medium-term financial support to low-income countries by providing a higher level of access to financing, more concessional terms, enhanced flexibility in program design features, and more focused streamlined conditionality. Financing under the ECF currently carries a zero interest rate, with a grace period of 5½ years, and a final maturity of 10 years (http://www.imf.org/external/np/exr/facts/ecf.htm). The Fund reviews the level ofinterest 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.