Nov. 4 (Bloomberg) -- The International Monetary Fund said it supported a request by Burundi to modify limits on non- concessional external debt to accommodate an $80 million loan to finance a hydropower project.
The line of credit, from the Export Import Bank of India, has a grant element of 31.6 percent, which is below the 50 percent level required under an IMF program, the Washington- based lender said in a statement on its website today. Efforts by the Burundian authorities to increase the grant element of the financing have been unsuccessful, it said.
The loan is to finance the Kabu 16 hydropower plant on the Kaburantwa River, which is expected to boost Burundi’s generation capacity by 36 percent.
The IMF supports the request for modification because it “considers that the benefits of the hydroelectric plant outweigh the additional risk arising from the proposed line of credit,” it said.
--Editors: Paul Richardson, Ana Monteiro.
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