Burundi has received a total of $261 million from the International Monetary Fund (IMF), which will be utilized to bolster its economic recovery efforts.
The IMF team, headed by Mame Astou Diouf, the Mission Chief for Burundi, visited Bujumbura in February, leading to subsequent meetings.
According to a statement released by the IMF, a staff-level agreement has been reached between the Burundian authorities and the IMF for a 40-month arrangement under the Extended Credit Facility (ECF) that grants access to $261.7 million.
The ECF is designed to provide medium-term financial aid to low-income countries (LICs) dealing with the prolonged balance of payment challenges.
This is the first Upper Credit Tranche-quality programme for Burundi supported by the Fund since 2015. The programme aims to support a calibrated macroeconomic policy mix to restore external sustainability, and strengthen debt sustainability while supporting economic recovery from shocks and create fiscal space for accelerated and inclusive growth.IMF
The IMF also mentioned that discussions with the Burundian authorities encompassed recent macro-developments, Burundi’s macro-policy plans, and structural reform agenda, as well as the impact of various domestic and external shocks.
Consequently, the country’s economy, which was on the path of recovery from the negative effects of the Covid-19 pandemic, has been hit by several shocks, leading to macroeconomic imbalances.
Specifically, delayed rainfall in the last quarter of 2022, coupled with limited availability of fertiliser due to higher prices caused by limited foreign exchange availability for imports, supply disruptions linked to the war in Ukraine, and insufficient domestic production to cover local farmers’ demand, have hampered agricultural production.