The International Monetary Fund has approved immediate disbursement of $6.9 million to Burundi, after completing the sixth review of the country’s economic performance.

Under an Extended Credit Facility (ECF) arrangement, total disbursements to the country now stand at $41.6 million. The IMF board also approved Burundi’s request for an extension of the current ECF arrangement to end in March 2016 and an additional $13.9 million.

“These will help strengthen the management of public finances and consolidate the country’s economic reform programme,” said IMF’s executive board acting chairman Mitsuhiro Furusawa.

He said economic growth is estimated to have picked up slightly in 2014 as inflation declined aided by falling global fuel prices and prudent monetary policy while progress under the ECF-supported programme has been satisfactory.

ECF is IMF’s main tool for medium-term financial support to low-income countries. It provides higher level of access to financing and more concessional terms.

Financing under the ECF currently carries a zero interest rate, grace repayment period of five and half years with final maturity of 10 years. Burundi’s three-year ECF arrangement of $41.6 million was approved on January 27, 2012.

Mr Furusawa said strengthening tax administration, improving co-ordination between tax policy design with its implementation will be critical to increase the tax-to- gross domestic product (GDP) ratio on a sustainable basis.

“The near-term economic outlook remains challenging, and prudent policies will continue to be needed in the face of uncertainties in the external environment, and in the run-up to the 2015 national elections,”’ he said.

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