Economic stabilization and recovery -- FY 1990

The funds will be used to: (1) service non-military U.S. bilateral debt and debt to multilateral institutions; (2) import petroleum and its derivatives from selected countries. Disbursements will be conditioned on demonstrated GOG progress in implementing its FY 1990 economic reform program in regard to fiscal, monetary, and exchange policy, as well as in regard to structural adjustment of the transport, communications, education, and agricultural sectors. Details of this program will be contained in a side letter to be submitted by the GOG prior to the first disbursement. Amendment of 9/26/91 authorizes FY 1991 ESF program. Program consists of $20 million in new funding and $30 million in undisbursed funds from the FY 1990 ESF program for a total 1991 funding level of $50 million. The disbursement of funds will be contingent on negotiation of a standby agreement with the IMF, continuation of the GOG"s economic stabilization program, and negotiation of an arrears clearing package acceptable to other international financial institutions (IFI"s). Program funds will finance debt servicing to IFI"s; an equivalent amount of local currency will be used for investment projects within the GOG"s core development budget and for the USAID/G Trust Fund. (PD-ABD- 393)