Journal Issue

Rwanda: Staff Report for the 2012 Article IV Consultation, Fifth Review Under the Policy Support Instrument, and Request for Modification of Assessment Criteria—Informational Annex

International Monetary Fund. African Dept.
Published Date:
March 2013
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Relations With the Fund

I. Membership Status: Joined: September 30, 1963; Article VIII

II. General Resources Account:

SDR Million%Quota
Fund holdings of currency80.11100.02
Reserve Tranche Position0.000.00

III. SDR Department:

SDR Million%Allocation
Net cumulative allocation76.82100.00

IV. Outstanding Purchases and Loans:

SDR Million%Quota
PRGF Arrangements 118.7510.93

V. Latest Financial Arrangements:

TypeDate of


Amount Approved

(SDR Million)
Amount Drawn

(SDR Million)
PRGFJune 12, 2006August 07, 2009 128.018.01
PRGFAugust 12, 2002June 11, 20064.004.00
PRGFJune 24, 1998April 30, 200271.4061.88

VI. Projected Payments to Fund13

(SDR Million; based on existing use of resources and present holdings of SDRs):


VII. Implementation of HIPC Initiative:

Enhanced framework
I. Commitment of HIPC assistance
Decision point dateDecember
Assistance committed by all creditors (US$ million) 14695.50
Of which: IMF assistance (US$ million)63.40
(SDR equivalent in millions)46.79
Completion point dateApril 2005
II. Disbursement of IMF assistance (SDR million)
Assistance disbursed46.79
Interim assistance14.45
Completion point balance32.34
Additional disbursement of interest income 153.77
Total disbursements50.56

Decision point—point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.

Interim assistance—amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).

Completion point—point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 4 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).

VIII. Implementation of Multilateral Debt Relief Initiative (MDRI)

I. MDRI-eligible debt (SDR Million) 152.74
Financed by: MDRI Trust20.19
Remaining HIPC resources32.55
II. Debt Relief by Facility (SDR million)
Delivery DateGRAPRGTTotal
January 2006N/A52.74

IX. Implementation of Post-Catastrophe Debt Relief (PCDR): Not Applicable

X. Safeguards Assessments:

The 2007 safeguards update assessment noted that since 2003, the National Bank of Rwanda (NBR) strengthened its own safeguards: External audits were completed on time, the Committee of Auditors became operational, and the Internal Audit Department helped in the strengthening of controls over monetary program data. The update assessment’s priority recommendations concerned timely publication of the audited financial statements, further improving external audit arrangements, and conformity with of IFRS. Safeguards policy does not require an update safeguards assessment in the case of the non-financial arrangement with the Fund. However, such assessment may be voluntary requested by the country, and the NBR has made a formal request for the update assessment.

XI. Exchange System:

The currency of Rwanda is the Rwandan franc. On December 1998, Rwanda accepted the obligations under Article VIII, Sections 2, 3 and 4 of the IMF and maintains a system free of restrictions on the making of payments and transfers for current international transactions. As of October 31, 2012, the official exchange rate was RWF 627.2 per U.S. dollar. The exchange rate has depreciated slightly since end-2011. The de facto exchange rate regime is currently classified as crawl like and the de jure as floating. With effect from December 27, 2010, the official exchange rate is the weighted average computed from a previous foreign exchange interbank market transaction and an intervention transaction by the National Bank of Rwanda (NBR). The Average Reference Rate, formerly used for the official exchange rate, was eliminated. The NBR applies a margin of +/-0.8 percent to the official rate to derive a customer rate. With a view to introducing more flexibility in its exchange rate policy, since March 24, 2010, NBR introduced an exchange rate corridor framework.

XII. Article IV Consultation:

Rwanda is on the revised 24-month consultation cycle. The Executive Board discussed the staff report for the 2010 Article IV consultation (IMF Country Report No. 11/19) on December 20, 2010.

XIII. FSAP Participation, ROSCs, and OFC Assessments:

A Report on Observance of Standards and Codes on Fiscal Transparency (ROSC) was issued in July 2003. A Financial Sector Assessment Program (FSAP) took place in February 2005, and a FSAP update was completed in June 2011. Rwanda has not had an Offshore Financial Center (OFC) assessment.

XIV. Policy Support Instrument (PSI):

A three-year PSI program was approved on June 16, 2010, with an effective date of June 30, 2010. The second review and the third review under the PSI were completed on June 23, 2011 and January 9, 2012, respectively, while the fourth review was completed on June 6, 2012XV. Technical Assistance and Future Priorities:

List of Technical Assistance Missions (2011–2012)
2011STA/AFRITAC East mission on national accounts statistics.
2011MCM mission on payment systems oversight.
2011STA mission on improving quality of fiscal data.
2011FAD mission on improving customs administrative efficiency
2011FAD mission on financial manual-legal requirements alignment
2011STA mission on national accounts statistics
2011MCM mission on strengthening regulatory framework
2011FAD mission on strengthening HQ functions and customs risks management
2011FAD mission on improving consistency of microeconomic databases
2011FAD mission on tax administrative reform priorities for tax compliance
2011FAD mission on regional workshop on strengthening systems and structures
2011FAD mission on gaps and options of public financial aid
2011FAD mission on tax administration capacity for auditing
2011FAC mission on TSA project
2011MCM mission on developing a medium term debt management strategy
2011MCM mission on enhancing monetary operations, foreign exchange operations and markets, and banking supervision
2011FAD mission on review of Organic Budget Law
2012STA mission on trade price indices
2012MCM mission on developing AML/CFT offsite tools
2012STA mission on quarterly national accounts
2012FAD mission on TSA project follow-up
2012STA mission on developing a framework for market risk
2012FAD mission on development of TSA project
2012STA mission on balance of payment statistics follow-up
2012FAD mission on program budgeting
2012FAD mission on establishment of tax administration reform priorities
2012FAD mission on smart IFMIS follow-up
2012FAD mission on macroeconomic framework capacity
2012mission on development of reporting guidelines for annual reports
2012STA mission on consumer price index
2012MCM mission on monetary operations, liquidity management and money markets development
2012FAD mission on enhancing revenue mobilization through tax policy and revenue administration reform

Future priorities

The priorities for the Fund’s technical assistance will remain in the area of monetary and exchange rate management, supervision of bank and nonbank financial institutions, public finance management, tax policy and administration, and compilation of national account statistics.

XVI. Resident Representative:

Ms. Farahbaksh Mitra assumed her duties as Resident Representative in August 2012.

XVII. Management Visit:

The Director of the African Department, Ms Antoinette M Sayeh, visited Rwanda during July 19 – 20, 2012.

Rwanda: Joint Bank-Fund Work Program June 2012–July 2013

TitleProducts/ActivityTiming of mission (if relevant)Expected

delivery date
I. Mutual Information on Relevant Work Program
Bank Work ProgramA. Strategy and Analytical Work
Country Assistance StrategyMay 2013
Rwanda Economic UpdatesOngoing
Employment and Growth PolicyMay 2013
Rwanda Land Sector StudyJune 2013
B. Ongoing and New Projects
Poverty Reduction Support Financing (PRSG 9)Pending
Electricity Access (Additional Financing)December 2012
Second Support to Social Protection SystemsMarch 2013
Feeder Roads Development ProjectMay 2013
Third Rural Sector Support ProjectOngoing
Statistics for Results ProjectOngoing
Governance and Competitiveness TA ProjectOngoing
Economic Empowerment of Young WomenOngoing
Skills Development ProjectOngoing
Second Emergency Demobilization and Reintegration ProjectOngoing
Land Husbandry, Water Harvesting, and Hillside IrrigationOngoing
Rwanda Electricity Access Scale-up and Sector-wide approach ProjectOngoing
Sustainable Energy Development Project (GEF)Ongoing
Transport Sector Development ProjectJuly 2013
Regional Rusumo Hydroelectricity ProjectOngoing
L. Victoria Environment Management Project (Ph. 2)Ongoing
EAC Financial Sector Development and Regionalization ProjectOngoing
East Africa Public Health Laboratories Networking ProjectOngoing
Regional Communications Infrastructure Project
East Africa Trade and Transport Facilitation Project
IMF Work

A. Missions
Fourth Review Under the Policy Support InstrumentMarch 2012June 2012
Article IV and Fifth Review Under the Policy Support InstrumentOctober 2012December 2012
Sixth Review Under the Policy SupportMarch 2013June 2013
B. Analytical Work
Review of Relevant CountryNovember 2012
Experiences in Transitioning from
Monetary to Inflation Targeting
Assessing Shock Spillovers in EACNovember 2012
Foreign Exchange Markets
The Investment-Financing-Growth NexusNovember 2012
B. Analytical Work
Developing a Forecasting and Policy Analysis Tool for RwandaMarch 2013
C. Technical Assistance
Fiscal: Enhancing Revenue MobilizationOctober 2012
Through Tax Policy and Revenue
Administration Reform
Monetary: Monetary operations; liquidity management and money markets developmentSeptember 2012
Statistics: Consumer Price IndexSeptember 2012
II. Request for Work Program Inputs
Bank Request to FundImpact of the global economic crisis on key macro indicators and growth in RwandaOngoing
Sharing macro-framework updatesAs needed
Fund RequestAssessment of key infrastructure projects undertaken by the government.As needed
to BankAssessment of the PFM and public service reform program.As needed
III. Agreement on Joint Products
Joint productsJoint Staff Advisory Note (JSAN) on the second Economic Development and Poverty Reduction Strategy (EDPRS2)March – April

Now known as Extended Credit Facility (ECF).

On June 4, the PRGF was extended from June 11, 2009 to August 14, 2009, to allow time for the completion of the sixth and final review, and for making the final disbursement under the PRGT arrangement.

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.

Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

The Multilateral Debt Relief Initiative (MDRI) provides 100 percent debt relief to eligible member countries that are qualified for the assistance. The debt relief covers the full stock of debt owed to the Fund as of end-2004 which remains outstanding at the time the member qualifies for such debt relief. The MDRI is financed by bilateral contributions and the Fund’s own resources, as well as the resources already disbursed to the member under the HIPC Initiative (see Section VII above).

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