2005News

IMF Accord to bring in US$2.35 billion

One of the important items on the agenda of yesterday’s cabinet meeting was a discussion about the imminent signing of the IMF agreement and what it will mean for the country. According to reports in El Caribe, the signing will bring in over two billion dollars in bonds, re-structuring of debts with the Paris Club and the return of private investors. After the 31 January signing, a disbursement of US$210 million will be forthcoming. US$135 million will come in as the first part of the accord, US$50 million will come from the IADB for “social” investment, and US$20 million will go to the electricity sector. The complete version of the text of the agreement will be published tomorrow. According to the El Caribe, government spokesman Roberto Rodriguez said that the government would direct 40% of the IMF funding to resolving the crisis. Over eleven billion pesos will go to the electricity sector as an energy subsidy.