IMF Extends the Kyrgyz Republic's Three-Year PRGF

IMF Executive Board Extends the Kyrgyz Republic's Three-Year PRGF Arrangement

On November 19, 2004 the Executive Board of the International Monetary Fund (IMF) extended the three-year Poverty Reduction and Growth Facility (PRGF) arrangement for the Kyrgyz Republic until April 5, 2005 to enable completion of the sixth and final review of the Kyrgyz Republic's economic performance under the arrangement.

The Executive Board approved the three-year arrangement effective on December 6, 2001 (see Press Release No. 01/49) for a total amount equivalent to SDR 73.4 million (about US$110.4 million).

The PRGF is the IMF's concessional facility for low-income countries. PRGF-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners and articulated in the Poverty Reduction Strategy Paper (PRSP). This is intended to ensure that PRGF-supported programs are consistent with a comprehensive framework for macroeconomic, structural, and social policies to foster growth and reduce poverty. PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with a 5½-year grace period on principal payments.

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