IMF warrants $11.8 million aid for CAR

Central African Republic receives aid from IMF to revive its economy amid violence and upcoming elections running out of time

Photo by: Reuters
Photo by: Reuters

The IMF's Rapid Credit Facility, is to help Central African Republic meet urgent balance of payments needs-Archive

The International Monetary Fund's (IMF) Executive Board has ratified about $11.8 million as financial aid for Central African Republic, the IMF reported on Tuesday.

The aid, under the IMF’s credit Facility, is to assist CAR to urgently meet balance of payments and for its economic revival programme, according to the IMF released statement.  

The board's approval on Monday followed a disbursement to Central African Republic in March under the Rapid Credit Facility.

"Economic prospects for 2016 are positive, with real GDP growth being projected at 5.7 percent, but risks remain high, including a protracted transition and lower external support," the IMF said.

"This new disbursement would also help the authorities address their urgent balance of payments needs and enable an orderly shift to the post-transition phase that should start after the elections," the statement said.

Since March, the Rapid Credit Facility has made a disbursement of about $7.9 million and later followed by the board’s approval on Monday.

It has been nearly two years since widespread violence erupted in CAR between predominantly Muslim Seleka rebels, who had seized power after overthrowing the country’s president, and the "anti-balaka" Christian militia who rejected their rule. Thousands of Central Africans were killed and hundreds of thousands remain displaced.

In January 2014, a transitional government was formed. Presidential and parliamentary elections are planned to take place in the CAR on Oct. 18. Apparently, preparations are running out of time and the head of the interim parliament said the elections are likely to be postponed again.

TRTWorld and agencies