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Burundi Country Financing Parameters Note
This note provides the supporting rationale for the country financing parameters (CFP) eligibility for Burundi. The new policy allows IDA to finance expenditures needed to meet the development objectives of the operations it supports, within an overall framework that addresses risks related to fiscal sustainability and the appropriate use of IDA resources, in a way that is consistent with the Articles of Agreement. The proposed approach is expected to increase flexibility to permit the use of IDA financing for a number of expenditures. It rests on three guiding principles, namely: (a) the expenditures financed from IDA credit proceeds are productive; (b) the impact of operations financed under such credits on the borrowing country’s fiscal sustainability is acceptable; and (c) oversight arrangements on the use of IDA funds are acceptable. The CFPs would be applied within the overall framework of the Burundi Interim Strategy Note (ISN) for FY06-07, which provides the background context relevant to the CFPs.