Lesotho: Third Review Under the Poverty Reduction and Growth Facility Arrangement and Request for Waivers of Performance Criteria--Staff Report and News Brief on the Executive Board Discussion

Abstract

This paper assesses Lesotho’s Third Review Under the Poverty Reduction and Growth Facility (PRGF) Arrangement and Request for Waivers of Performance Criteria. The government has declared a state of famine that is affecting an estimated 900,000 people. One quantitative performance criterion for end-March 2002—the ceiling on the government’s domestic financing requirement—was not observed, almost entirely because of delays in external payments. The authorities have requested, and IMF staff supports, a waiver on this performance criterion.