Press release

• Pages: 347-348

Page 347

Djibouti: ESAF

The IMF approved a three-year loan for Djibouti under the Enhanced Structural Adjustment Facility (ESAF) in an amount equivalent to SDR 19.1 million (about $26.5 million) to support the government's three-year economic reform program beginning July 1999. The first annual loan will be disbursed in three installments. The first installment, in an amount equivalent to SDR 2.7 million (about $3.8 million), will be available shortly. Following are excerpts of a statement by IMF Deputy Managing Director Shigemitsu Sugisaki on the Executive Board discussion.adjustment program under the ESAF arrangement, aimed at strengthening macroeconomic policies and deepening structural reforms, in order to accelerate growth, raise employment levels, reduce poverty, and strengthen the external position.

"Directors commended the authorities' intentions to continue a tight fiscal policy stance while still increasing outlays for social programs and infrastructure investment. In particular, noting the importance of poverty Djibouti: selected economic and social indicators adjustment program under the ESAF arrangement, aimed at strengthening macroeconomic policies and deepening structural reforms, in order to accelerate growth, raise employment levels, reduce poverty, and strengthen the external position.

"Directors commended the authorities' intentions to continue a tight fiscal policy stance while still increasing outlays for social programs and infrastructure investment. In particular, noting the importance of povertyPage 348 reduction, they underscored the need to provide adequate expenditure allocations for health, education, and social safety nets.

"Directors encouraged the authorities to persevere in their economic restructuring program, which they considered essential for a fundamental improvement in competitiveness and overall economic performance.

"Directors recognized that the ambitious reform agenda represented a major challenge for the authorities, and that timely financial assistance on concessional terms and substantial technical assistance from the...