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NAIROBI , Sep 18, 2008 — The International Monetary Fund has approved a 20-million-dollar (14-million-euro) loan to war-battered Djibouti , a statement said.
Six million dollars will be disbursed immediately to cushion the Horn of Africa nation against the food and oil price shocks.
" Djibouti 's growth performance and prospects have improved significantly, driven by large foreign direct investments in the port and other key sectors of the economy," the IMF statement said late Thursday.
"This rapid expansion, combined with the surge in food and oil import prices, has pushed up domestic prices. The challenge remains to reduce widespread unemployment and poverty."
Djibouti 's growth accelerated from 4.8 percent in 2006 to 5.3 percent in 2007, largely driven by foreign direct investments.
This rapid expansion, combined with the surge in food and oil import prices, pushed inflation from 3.5 percent in 2006 to 13.9 percent year-on-year in June 2008.
Source: AFP
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