In the most comprehensive reform of IMF support for low-income countries in over two decades, the new package of IMF concessional facilities became effective January 7 2009.
This far-reaching reform more than doubles our lending resources, provides exceptional interest relief, and offers new lending instruments that are more flexible and responsive to individual country needs.
A press release issued by the IMF on Wednesday 3rd February states: "Key elements of the reform include: Three new lending instruments: The Extended Credit Facility will provide flexible medium-term support; the Standby Credit Facility will address short-tern and precautionary needs; and the Rapid Credit Facility will offer emergency support with limited conditionality.
Interest relief, with zero payments on outstanding IMF concessional loans through end-2011 to help low-income countries cope with the global crisis.
Permanently higher concessionality of Fund financial support – with annual interest rates reviewed so as to preserve a higher level of concessionality.
For Sierra Leone this means that the Poverty Reduction and Growth Facility (PRGF) has now been converted into an Extended Credit Facility, which will be interest-free through end-2011".
