Tuesday, November 25, 2008

IMF Clears Way for a $7.6 Billion Loan to Pakistan

From The Wall Street Journal:

WASHINGTON -- The International Monetary Fund's executive board cleared the way Monday for a $7.6 billion loan to provide Pakistan with much-needed financing.

The troubled South Asian country will get immediate access to about $3.1 billion, with the rest to be phased in quarterly reviews, the fund said in a statement.

The 23-month standby facility is expected to form part of a broader international package to help Pakistan deal with a balance-of-payment crisis. The country needs about $4 billion in short order to pay for its imports and help repay its debt.

The IMF program aims to restore the confidence of domestic and foreign investors with a tightening of fiscal and monetary policies, while maintaining social stability through targeted spending, the IMF said.

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