NEW DELHI: The 2.2 billion dollar standby loan arrangement with the International Monetary Fund and key policies announced in the general budget for 1992.93 will be reviewed by senior officials of the IMF and India’s finance ministry later tis work
While sources in the finance ministry describe the meetings as routine the two sides are expected to evaluate the extent to which the IMF requirements committed to by the government have been followed.
The budget for 1992-93 was approved by both Houses of Parliament last week.
Officials in the finance ministry are confident that the broad thrust of the proposals in the budget will meet the requirements of IMF. As far as the terms lay down the 18 month 2.2 billion dollar loan is concerned the government i “on track” they said
Under IMF rules a routine review of a member country’s overall performance is undertaken soon after the passage of the budget. This year these discussions are merged with the review of the standby arrangement which is required under the letter of intent to the IMF.
Of the 2.2 billion dollar loan arrangement with the IMF India has already drawn two payments and the balance will be disbursed in the coming 12 months if the IMF is satisfied with the fulfillment of the commitments made when the pact was entered into.
“In the course of the next week or 10 days we will have discussions con both the budget and the review of the standby loan” a senior finance ministry official said.
Besides India is expected to get the balance 200 million dollars structural adjustment Ioan from the World Bank sometime in May of the total 500 million dollars India has drawn the first payment of 300 million dollars.
Article extracted from this publication >> April 10, 1992
