Aid donors warned of long delays in aid distribution if the budget is not presented soon as the IMF postponed the release of the second tranche of a key structural adjustment loan.
The second tranche of a US$ 567 mn IMF loan backing the reforms could be pushed back due to the current political uncertainty and the postponement of the budget 2004.
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rnThe Fund was expected to lend US$ 80mn in budgetary support based on a review, that has already taken place, and on the government budget.rn
rnIMF resident representative Jeremy Carter told LBR that ldblquote political uncertainty leads to economic uncertainty and the absence of a budget leaves a gap on what the government economic program is going to be like for the next year. dblquotern
rnIMF is not willing to give the generous budgetary support without a budget being presented in parliament. As a result the second tranche of structural adjustment loan is on ice.
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rnDonors say an improving macro economic foundation, that lenders like the IMF keep