http://www.emirates247.com/news/world/imf-approves-14-m-loan-for-drought-hit-djibouti-2012-02-08-1.441910
IMF approves $14 m loan for drought-hit Djibouti
By
- Reuters
Published Wednesday, February 08, 2012
The International Monetary Fund on Monday agreed to boost financing for
Djibouti by another $14 m (Dh51.4m) to help the country deal with the
impact of a drought in the Horn of Africa and an increase in global
commodity prices.
The IMF said it would immediately disburse about $9.7 million of the money
to the government. In 2008, the IMF agreed a $19.6 million loan for
Djibouti.
Drought late last year hit countries in the Horn of Africa including
Somalia, Ethiopia, Kenya and Djibouti, putting more than 13 million people
at risk of starvation.
IMF Deputy Managing Director Nemat Shafik said higher commodity prices and
the drought had hit poor households the hardest.
"These shocks have hiked imports, especially on food and fuel, thus
increasing the current account and external financing needs, and have put
pressure on fiscal space through lower tax revenues and higher fuel
subsidies," Shafik said in a statement.
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Received on Wed Feb 08 2012 - 10:03:31 EST
