Pakistan meets IMF loan terms
By IM on Jan 04, 2010 with Comments 0
The State Bank of Pakistan claims to have achieved the milestones set by the International Monetary Fund in the Stand-by Agreement signed in December 2008.
In the quarter ending December 31, the Central Bank of Pakistan reached milestone of increasing the external assets and decreasing the internal assets of banking system. In lending to the government of Pakistan, the Central Bank also complied with the process required under the Stand-by Agreement.
The government of Pakistan raised US$2 billion from the auction of Treasury Bills (T-Bills) in December and paid off the Central Bank’s loan.
It may be noted that instead of releasing the aid in January 2010, the IMF had send the fourth tranche of US$1.20 billion on December 28 and additional US$400 million were provided to cover the budget deficit.
The IMF aid helped the banking system to increase its foreign assets up to US$4 billion and the SBP has remained successful in achieving the prescribe targets.
Filed Under: Forex
