Getting Late

Aid donors warned of long delays in aid distribution if the budget is not presented soon as the IMF postponed the release of the second tranche of a key structural adjustment loan.
The second tranche of a US$ 567 mn IMF loan backing the reforms could be pushed back due to the current political uncertainty and the postponement of the budget 2004.rn

rnThe Fund was expected to lend US$ 80mn in budgetary support based on a review, that has already taken place, and on the government budget.rn

rnIMF resident representative Jeremy Carter told LBR that ldblquote political uncertainty leads to economic uncertainty and the absence of a budget leaves a gap on what the government economic program is going to be like for the next year.

rnIMF is not willing to give the generous budgetary support without a budget being presented in parliament. As a result the second tranche of structural adjustment loan is on ice.rn

rnDonors say an improving macro economic foundation, that lenders like the IMF keep