WASHINGTON (Jan. 10)
A total equivalent to $22,400,000 has been made available to the United Arab Republic, the International Monetary Fund announced today. The drawing–half in pounds sterling, and half in United States dollars–is to be repaid within 12 months. Prior to today’s transaction, outstanding UAR drawings from the Fund amounted to $49,800,000.
In announcing the arrangement today, the Fund stated: “The United Arab Republic is experiencing balance-of-payments difficulties which have been intensified by a sharp decline in agricultural production. Pests have caused a decline in the cotton crop of more than 30 percent, and other crops have been affected in a similar way. It has been agreed in the circumstances that the country’s foreign payments problems should be the subject of further consultation with the Fund in the near future.”