The Rwandan government issued a $400 million Eurobond yesterday, successfully borrowing capital on the international market to plug its debt gap. The funds, which pay a yield of 6.875 per cent, will be used to finance the building of its convention center, the development of RwandAir, and a hydroelectric power project.
This success comes on the heels of the World Bank and the African Development bank releasing some of the funds that had been suspended last year--$50 million and $49 million, respectively, according to diplomats in Kigali. While most of this money has been shifted from general to sectoral budget support, the range of donors I spoke with in Kigali all questioned this absolute distinction, suggesting that both categories consist of fungible funds. This releases some pressure on ... [view whole blog post ]