The IMF resources include a $600 million loan over three years approved on Wednesday and another $452 million in IMF special drawing rights, IMF mission chief to
Reuters adds the SDR contribution comes from an agreement reached in April among Group of 20 member nations to boost global liquidity through a $250 billion allocation of SDRs to the IMF’s 186 member countries, possibly this year.
SDRs are the IMF’s internal unit of account, which is a currency basket composed of the dollar, euro, yen and pound.
The country’s budget woes began in 2007 as the government dealt with a record rise in global food and fuel prices, followed by a domestic power crisis and election-related spending.
He said the IMF’s $600 million loan program, under the Poverty Reduction and Growth Facility for low-income countries, was designed with fiscal, inflation and international reserve goals.
It includes a government target to reduce the fiscal gap to 9.4 percent of GDP this year, from a current 14-15 percent. A fiscal target of 6 percent of GDP in 2010 will be discussed with the authorities in talks in September, Allum added.
To reduce the deficit, he said adjustments will be needed in the large public sector payroll and possibly large increases in domestic electricity tariffs for residential and business users.
Meanwhile, Allum said gross domestic product growth in
Allum said the economy was expected to get a major boost from oil production in the first 5 to 6 years starting in 2011 with revenues expected to increase between 6 to 7 percent of GDP in the first few years.
He said the IMF had calculated that oil income to the budget will be worth about $40 per person in
“That will make some differences to living standards in