The International Monetary Fund (IMF) said on Wednesday that it will provide a total of US$114 million in emergency aid to Haiti hit by a 7.3-magnitude earthquake on January 12.

The IMF executive board has approved an SDR 65.5 million (about US$102 million) augmentation to Haiti's Extended Credit Facility, said the IMF in a statement.

"With the approval of this additional financing, a total of US$114 million will be disbursed by the end of this week, constituting the largest amount made available so far to the Haitian authorities after the earthquake," it added.

IMF managing director Dominique Strauss-Kahn noted that the IMF augmentation will provide "urgently needed cash resources to the government, which will allow the authorities to acquire emergency imports without depleting Haiti's reserves."

According to the IMF, the emergency augmentation will provide urgently needed financing for essential imports, and make cash available to banks and transfer houses.

It will also enable the Haitian authorities to maintain an adequate reserves cushion in the face of very large import needs linked to reconstruction.

The emergency IMF assistance carries highly concessional terms. It is interest-free and repayments of principal are only due after a 5.5-year grace period. The financing is not subject to any additional policy conditions.

(Xinhua News Agency January 28, 2010)