The government will secure Euros 38.5 million loan from a German development bank, the Kreditanstalt für Wiederaufbau (KfW) (Reconstruction Credit Institute).
According to a statement from the Ministry of Foreign Affairs and Cooperation, the Frankfurt-based government-owned development bank will advance two loans of Euros 26.5m and Euros 12m to Rwanda.
The financial assistance is intended for macroeconomic program support, decentralization, and the health sector.
The loan will also be used to improve technical cooperation.
The signing of the pact will be held at the ministry offices this morning and it is noted that the loan is “in a spirit of Cooperation and friendly relations existing between the two countries” and aims to strengthen and intensify Financial and Technical Cooperation between the two countries.
KfW was formed after World War II as part of the Marshall Plan.