IMF approves US$3 Million for Dominica

Dominica’s recovery from a series of natural disasters in between July and September 2011 is expected to cost 6.5% of its gross domestic product (GDP) and weaken its balance of payments, according to the International Monetary Fund (IMF).

Now the Washington-based institution is stepping in to disburse an amount equivalent to special drawing rights (SDR) 2.05 million (equivalent to US$3.1 million) under the Rapid Credit Facility (RCF) for Dominica to help manage the economic impact.

The Executive Board of the IMF yesterday (January 11) approved the immediate disbursement of the full amount.

The RCF, which provides rapid financial assistance for low-income countries with an urgent balance of payments need, does not require any program-based conditionality or review. However, economic policies are expected to address the underlying balance of payments difficulties and support policy objectives including macroeconomic stability and poverty reduction. Financing under the RCF carries zero interest (until end 2013), has a grace period of 5 ½ years, and a final maturity of 10 years. The Fund reviews the level of interest rates for all concessional facilities every two years.

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