From the Executive Board

• Pages: 215-218

Page 215

F. Y. R. of Macedonia: ESAF The IMF has approved the second annual loan under the Enhanced Structural Adjustment Facility (ESAF) for the former Yugoslav Republic of Macedonia (FYRM), in an amount equivalent to SDR 18.2 million (about $24 million), to support the government's economic program for 1998/99. The loan is available in two equal semiannual installments, the first of which is available this month [June]. 1998 Program

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The overall strategy for 1998-2000 aims to improve living standards by consolidating private ownership and strengthening market-based institutions; macro-economic policies will focus on providing a stable financial environment to engender enterprise adjustment, reduce interest rates, and promote investment and jobs. The 1998 program supported by the ESAF targets real GDP growth of 5 percent, end-year inflation of 3 percent, and a current account deficit of 7.3 percent of GDP. Monetary policy will continue to be based on the deutsche mark anchor. Structural Reforms

Key objectives of the structural policy agenda are to strengthen corporate governance and bank lending practices. The authorities also intend to rationalize public expenditure and introduce a value-added tax to place the fiscal accounts on a more sustainable footing and provide room for a reduction in the direct tax burden. Efforts will continue toward liberalizing labor markets, developing financial markets, and removing July 6,1998 barriers to trade and foreign investment to promote the Page 216 transfer of needed capital and technology and reduce high unemployment. Addressing Social Needs

The government will continue to improve the adequacy and targeting of the means-tested social assistance program for persons capable of work and to improve its poverty monitoring capacity. These, along with supplemental programs for the elderly and disabled, are the main vehicles for protecting the poor.

The FYRM succeeded the former Socialist Federal Republic of Yugoslavia to membership in the IMF on December 14, 1992. Its quota is SDR 49.6 million (about $66 million), and its outstanding use of IMF credit totals SDR 65 million (about $87 million).

Press Release No. 98/23, June 19

Rwanda: ESAF

The IMF approved a three-year loan for Rwanda under the Enhanced Structural Adjustment Facility (ESAF) in an amount equivalent to SDR 71.4 million (about $95 million) in support of the government's economic program for April 1998-March 2001. The first annual loan, equivalent to SDR 23.8 million (about $32 million) is available in two equal semiannual installments, the first of which is available immediately. Medium-Term Strategy and 1998-2001 Program

Over the medium term, the program for 1998/99-2000/01 supported by...