Rwanda: Request for a 38-Month Arrangement Under the Extended Credit Facility; Press Release; Staff Report; and Statement by the Executive Director for Rwanda

This paper presents Rwanda’s Request for a 38-month arrangement under the Extended Credit Facility (ECF). Rwanda’s economy remains resilient, though risks from a prolonged war in the Middle East could weigh on growth, inflation, external balance and debt. The 38-month ECF-supported program aims to support sound macroeconomic adjustment by: strengthening the macroeconomic policy mix, managing fiscal and debt risks to sustain growth, and promoting private sector-led growth with transparent fiscal oversight of state-owned enterprises. An appropriately tight and forward-looking monetary policy will help address elevated inflationary pressures. Strengthening policy communication, reinforcing the credibility of the inflation target, and improving transmission will be essential to better anchor inflation expectations. Rapid credit growth and concentrated exposures warrant close monitoring though the financial sector remains stable. Advancing structural reforms will be key to enhancing resilience and supporting more private-sector-led growth. the ECF-supported program, underpinned by the authorities’ strong policy commitment and continued engagement with development partners, provides an appropriate policy anchor to support orderly adjustment, sustain reform momentum, and catalyze more financing.