Plea for IMF funds

St Vincent requests emergency financing

Ralph Gonsalves
Ralph Gonsalves

KINGSTOWN – The St Vincent and the Grenadines government is seeking more than US$6 million in emergency financing from the International Monetary Fund (IMF), Prime Minister Dr Ralph Gonsalves said today.

He told a news conference that a letter of intent would be sent to the Washington-based financial institution and that he was hopeful that the funds would be disbursed in June when the IMF board of directors meets to discuss the request.

“I am making a request for emergency financing from the IMF amounting to 4.15 million special drawing rights [SDR], equivalent to US$6.4 million. I am asking for 25 per cent of our quota under the Rapid Credit Facility . . . which is five years with three and a quarter years grace period at 1.13 per cent interest.”

Gonsalves told reporters he held talks with an IMF delegation that had visited the island “at our request” and the use of the funds “as I am saying in the letter is for rehabilitation”.

“The IMF assistance will meet the urgent foreign exchange needs stemming from the disaster and ease the pressure on our balance of payments,” he said, adding that the funds would represent a blend between the Rapid Credit Facility and the Rapid Financing Instruments.

Source: CMC

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