The World Bank has loaned Rwanda a total of $95 million that will be used to support various projects meant for improvement of citizens livelihoods.
The loan has been released by International Development Association (IDA) after an agreement signed today by Rwanda’s Minister of Finance and Economic Planning, Amb. Gatete Claver and the Country Representative of World Bank to Rwanda, Yasser El Gammal.
The loan will be used to uplift livelihoods of vulnerable citizens supported through Vision 2020 Umurenge Program (VUP) based on Ubudehe categories.
The loan was approved by the World Bank Board on Monday and will be repaid within 40 years at interest rate of 0.75%.
Minister Gatete has explained that the program complies with the government’s plan to reduce poverty.
“As we have recently seen, 16.3% in extreme poverty which we want to completely remove by 2020. That is why we need such a fund,” he said.
The World Bank supports Rwanda in various programs through technical aid and fund delivery. It has so far provided $260 million over the past three years.