Donor Prop Up

Minister appoints Dr Swaminathan to IPACSL as Chairperson

The World Bank will offer a loan to prop up the government budget next year.rn

rnThe poverty reduction support credit will come on the back of the proposed growth facility loan currently being negotiated with the IMF.rn

rnUnlike a program loan the PRSC funds will go towards financing the budget. rn

rnThe government and the bank will however generally agree on a structural reform strategy before the loan is announced.rn

rnNegotiations between the government and the bank for the poverty reduction support credit facility is due to get underway within two months.rn

rnldblquote The IMF creates the Poverty Reduction and Growth Facility (PRGF). At the World Bank we
quote ve created a new instrument called the Poverty Reduction Support Credit- that we would do in parallel for countries that do poverty reduction; for countries that has finished poverty reduction strategy,
dblquote says World Bank Country Director Peter Harrold. rn

rnldblquote Sri Lanka has been working on that with many participants for s