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Frozen aid to Rwanda will affect 12 percent of budget

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By Robert Mugabe

newsdesk@greatlakesvoice.com

Kigali-Rwanda-Frozen aid amounting to $240 Millions out of the $362.7Miliions which had been promised by donors is to affect national budget up to 12%, Senior Finance Ministry official has said.

Rwanda has also reduced its economic growth projection for 2013 to 6 percent from previous expected 7.4 percent because of aid cuts.

Donor countries commonly known as development partners started the campaign of withdrawing aid to Rwanda in July 2012 following allegations of Rwanda aiding M23 rebels threatening to topple Joseph Kabila’s government in Kinshasa.

About $44Million promised by the British government as a part of direct budget support to Rwanda only $13Millions has been delivered as $33Millions is still frozen.

Aid cut campaign has not only been carried out by individual countries only but also multilateral diplomats. The World Bank has delayed $125Million and EU has lobbied successfully making Rwanda fail to access $40Million from African Development Bank ADB.

Though Rwanda’s Finance and Economical Planning, John Rwangombwa says he’s to present a revised budget to the Parliament basing on the available.

Dutch government also suspended 5Million Pounds for judicial aid. Finance Ministry officials say, European Union has disabused the whole budget support they had promised.

“Seems we need to give up on bilateral donors’ money in 2012-2013 budget and keep hope that the trilateral donors will unfreeze the money for this budget year. We need to focus on the available resources and mean while forget 12% budget cut,” Rwangombwa said.

Speaking to the Parliament, Rwanda’s Foreign Affairs and regional cooperation Minister, Louise Mushikiwabo said cutting Aid to Rwanda will not solve Congolese Problem.

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