Rwanda - Financial Sector Adjustment Program

Report No. PIC988 Project Name Rwanda-Financial Sector Adjustment Program Region Africa Sector Non-sectoral Project ID RWPA2263 Implementing Agency Ministries of Finance, Planning, and Commerce Banque Nationale du Rwanda (BNR) Mr. Corneille Minani Director of Monetary Policy B.P. 531 Kigali Tel: 74532 Fax: (0) 751 Telex: (909) 208 - 289 BNR RW Projected Board Date June 1994 Project Objectives 1. The overall objective of the project is to support a comprehensive Government program for the development of a well-functioning and broadly-based financial sector, through the implementation of far- reaching policy and institutional reforms in order to facilitate investment and growth in the productive sectors of the economy. The program will introduce changes in financial policies and institutions that will ensure financial and monetary stability and the development of a responsive and efficient financial system. The program will improve resource mobilization and efficiency in credit allocation and enhance the soundness of financial institutions. Project Description 2. The program has three major components: (i) reorienting monetary and financial policies, particularly in the areas of interest rate and credit policies, and developing new financial instruments for improved deposit mobilization and greater efficiency in investment lending; (ii) restructuring financial institutions in distress and enhancing public trust in them; and (iii) strengthening the legal and regulatory framework governing financial institutions, establishing a supervision system to avoid future crises and ensure financial stability, and strengthening the national accounting standards. Project Implementation 3. To monitor implementation of the overall structural adjustment program, the Government has established an interministerial committee with representatives from the Ministries of Finance, Planning, and Commerce and the Central Bank (Banque National du Rwanda - BNR), under the overall responsibility of the President's office. Specifically for the implementation of the financial sector adjustment program, technical staff from BNR will be responsible for implementing most of the monetary policy reforms and the strengthening of bank supervision and regulation.  Project Financing 4. The Government's financial sector adjustment program will be supported by an IDA Credit in an amount to be determined on the basis of the financial needs of the Government. In addition, Switzerland will provide technical assistance required for the program. Environmental Aspects 5. The project has been assigned environmental category "C" as there are no related environmental issues. Contact Point Public Information Center The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202) 458-5454 Fax No.: (202) 522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. -2-