The executive board of the International Monetary Fund (IMF) approved an SDR 65.5 million (equivalent to about $102 million) augmentation to the facility, that will help Haiti cope with the aftermath of the massive and disastrous earthquake that struck the country on January 12, 2010.
With the approval of this additional financing, a total of $114 million will be disbursed by the end of this week, constituting the largest amount made available so far to the Haitian authorities after the earthquake.
The emergency augmentation will provide urgently needed financing for essential imports, and make cash available to banks and transfer houses. It will also enable the authorities to maintain an adequate reserves cushion in the face of very large import needs linked to reconstruction. The emergency IMF assistance carries highly concessional terms. It is interest-free and repayments of principal are only due after a 5.5 years grace period. The financing is not subject to any additional policy conditions. (BBJ Online)