IMF approves US $13 million post-conflict aid

Burundi can immediately draw funds from a US $13-million credit that the executive board of the International Monetary Fund (IMF) approved on Monday for post-conflict emergency aid to the country, according to a statement issued from the Fund's Washington DC headquarters. The money will be used to support the government's reconstruction and economic recovery efforts, following the August 2000 peace and reconciliation agreement signed in Arusha, Tanzania. "Burundi has been moving toward political normalcy since the conclusion of the Arusha peace and reconciliation agreement in August 2000, and the authorities have begun addressing the country's deep-seated economic problems," Eduardo Aninat, the deputy managing director and acting chairman of the IMF Executive Board, said after discussions on Burundi's request. He said Burundi had made "significant" progress in implementing its economic programmes in 2002 and early 2003. "Economic growth was sustained and inflation has remained under control," he added. Burundian authorities, he said, had "indicated that they intend to seek further Fund support under the Poverty Reduction and Growth Facility [PRGF] as early as conditions permit". He said the adoption of a PRGF-supported programme could lead to Burundi's debt relief from external creditors, including relief under the Initiative for Heavily Indebted Poor Countries. "The Fund stands ready to consider further financial support for Burundi in the coming months, subject to continued strong programme implementation, progress in regularising relations with external creditors, and further advances in the peace process," Aninat said.