LS - Third Poverty Reduction Support Credit

closed

Closed

The objective of the Third Poverty Reduction Support Grant and Credit (PRSGC-3) Program for Lesotho is to support the government's growth strategy, and its medium term policy framework to restore macroeconomic stability in the wake of the global financial crisis. The PRSGC-3 is the third and final in a series of annual Development Policy Operations (DPO) supporting the Government of Lesotho's (GoL) development program laid out in its interim national development framework and growth strategy, and consistent with the Country Assistance Strategy (CAS) for FY10-14. The operation will be a grant and credit, totaling US$18 million. It comes at a time when the GoL is coping with the shocks precipitated by the global financial crisis which have affected growth and public finances adversely, and led to a significant deterioration in Lesotho's near-term economic outlook. The operation takes cognizance of the need for macroeconomic stabilization and the implied constraints, while continuing to support the longer term developmental program of the country. Macroeconomic conditions deteriorated sharply after 2008, reflecting the adverse impacts of the global economic crisis. Economic growth slowed down from 4.7 percent in 2008 to 2.5 percent in 2009 due to reduced demand for diamond and textile exports, and the recovery since has been slower than expected. In response, GoL has adopted a medium-term program designed to restore macroeconomic sustainability, while retaining the longer-term focus on broad-based growth for poverty reduction.

FY17 - Health,FY17 - Industry, Trade and Services,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Manufacturing (Industrial), Government