The International Monetary Fund’s (IMF = Valutafonden) executive board has approved a three-year arrangement under an extended credit facility (udvidet låneordning) for Kenya in an amount equivalent to about 508,7 million US dollar (ca. 2,7 milliarder DKR).
The approval will immediately enable an initial disbursement (udbetaling) of about 101,7 million dollar, the IMF said.
The IMF said in a statement the funding will help “address balance-of-payments (betalingsbalance) financing needs and provide a reserve cushion to help the country deal with adverse shocks”.
IMF First Deputy Managing Director John Lipsky said Kenya’s economy was picking up after being hit by the effects of the global financial crisis and political uncertainty.
Lipsky said the Kenyan economy is recovering with the help of fiscal stimulus measures, with construction and agriculture sectors rebounding firmly (gå fremad igen). He also credited a rise in confidence after the ratification of a new constitution.
The three-year loan program envisages tax reforms and disciplined government spending. “A successful implementation of constitutional provisions will also address governance issues, by strengthening the judiciary (retssystemet) and overhauling the public expenditure management framework”, the IMF said.
Meanwhile, data showed Monday that neighbouring Tanzania’s economy grew 6,2 percent in the third quarter of 2010 from 5,7 percent in the same period a year ago due to an improvement in construction, transport and communication sectors.
