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Kigali First African Country to Secure IMF’s Climate Change Funding

This week, the IMF approved Rwanda as the first African country to benefit from a new instrument to help poor countries tackle long-term structural challenges such as climate change. Rwanda’s $319m loan under the Resilience and Sustainability Trust (RST) will help facilitate green public investment, mitigate financial risk and strengthen balance-of-payments stability, the IMF said in a press release announcing the board decision. The loan is accompanied by a 36-month new Policy Coordination Instrument aimed at supporting the government to build on the progress in macroeconomic, fiscal, and financial reforms to deliver more inclusive, resilient, and sustainable growth. The RSF program will include the facilitation of green public investment, creating further fiscal space, mitigating financial risks, and strengthening public debt dynamics and prospective balance-of-payments stability. The IMF previously approved Costa Rica and Barbados in October and November.