World Bank restores full operations in Central African Republic (01/12/06)
 

The International Development Association (IDA) today approved a grant of US$82 million to the Central African Republic (C.A.R.), effectively restoring the country to a full partnership with the Bank and setting the stage for enhanced financial support by all multilateral donors.
 
 

The Reengagement and Institution-Building Support Program Grant for the C.A.R. provides support for C.A.R.’s immediate external financing needs following arrears clearance, as well as budget support, with an emphasis on reinforcing stability, strengthening institutions and supporting governance reforms.

By setting the stage for restored external support, the grant also opens the door for negotiating debt relief for C.A.R. under the program for Highly Indebted Poor Countries (HIPC) and the Multilateral Debt Relief Inititative (MDRI).

 

The grant follows on earlier assistance provided by the Bank to the C.A.R. through the Trust Fund for Low Income Countries under Stress (LICUS), which provides support to fragile states.

A $6.8 million grant provided last month supported reforms in public financial management and governance, complementing assistance from other donors such as France, the European Union, and the International Monetary Fund.

In addition, IDA hopes to restore US$17.5 million in funds for a program, approved in 2001, to support the country’s fight against HIV/AIDS, which affects an estimated 11% of the adult population, as well as to provide further grants in the near future to support needed investments in infrastructure and the restoration of basic services to the population.

Source: World Bank

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