The rise of international food and fuel prices in 2008,and the economic/financial downturn have had a severe negative impact on STP's balance of payments, inflation, fiscal deficit and poverty rates. The authorities have been able to continue the reforms agreed on the Public and Natural Resource Management Development Policy Grant (PNRMD) and keep a relatively stable macroeconomic framework thanks to donor's support and the partial sell of ENCO, the petroleum distribution company. In 2009, STP's Government has decided to take a proactive approach and implement a large public investment program to develop domestic agriculture and improve food security. However, the reform program remains underfunded and indications are that there could be a continued deterioration on food security and macroeconomic stability in a growing uncertain international economic environment. The proposed supplemental financing operation to the PNRMD will fulfill the financial gap of the 2009 Budget, sustain food crop production and food security and help to keep the overall reform program in a stable macroeconomic environment.