KIGALI, June 9 (Xinhua) -- The Executive Board of the International Monetary Fund (IMF) has approved Rwanda's request for a 38-month arrangement under the Extended Credit Facility (ECF), providing access to Special Drawing Rights (SDR) 185.031 million (about 250 million U.S. dollars), equivalent to 115.5 percent of the country's quota.
In a statement issued on Monday, the IMF said the approval authorizes an immediate disbursement of SDR 26.433 million to support the country's economic program.
According to the IMF, the ECF-supported program is designed to help Rwanda adjust to tighter global financing conditions while maintaining economic growth, safeguarding priority social and development spending, and rebuilding policy buffers.
"Rwanda's economy has remained resilient amid successive shocks, reflecting strong reform ownership and agile policymaking," Li Bo, IMF deputy managing director and acting chair of the executive board, was quoted as saying in the statement.
"Against a more challenging global backdrop of tighter financing conditions, declining Official Development Assistance, and heightened uncertainty, growth has been robust, even as inflationary pressures have intensified, and external imbalances have remained elevated," he added.
Li noted that although Rwanda's economic outlook remains favorable, risks are tilted to the downside.
The IMF said the ongoing conflict in the Middle East is weighing on the country's economic outlook, with growth projected to slow to below 6.8 percent in 2026.
Higher international oil and fertilizer prices linked to the conflict have increased inflationary pressures and contributed to fiscal and current account challenges. Additional pressure is also coming from the financing needs of major strategic investments.
The IMF said the new ECF-supported program seeks to maintain reform momentum, support sound macroeconomic adjustment, and rebuild policy buffers while helping Rwanda manage the economic effects of the Middle East conflict.
The program is built around three key pillars: strengthening the overall macroeconomic policy framework, managing fiscal and debt-related risks to sustain growth, and promoting private-sector-led development through improved transparency and oversight of state-owned enterprises.
Rwanda's Ministry of Finance and Economic Planning welcomed the decision, noting in a post on X on Tuesday that the 250-million-U.S.-dollar facility aims to stabilize the economy, ease external and fiscal pressures, and promote inclusive growth driven by the private sector.
Rwanda's economy has continued to perform strongly, with growth reaching 9.4 percent in 2025, significantly exceeding earlier projections. However, inflationary pressures have intensified in 2026, with inflation rising above the central bank's target range and reaching 13.2 percent year-on-year in April. ■