IMF Executive Board approves US$47.1 million Extended Credit Facility (ECF) arrangement for The Gambia

IMF Executive Board approves US$47.1 million Extended Credit Facility (ECF) arrangement for The Gambia

The Executive Board of the International Monetary Fund (IMF) approved a thirty-nine-month Extended Credit Facility arrangement for The Gambia in the amount of SDR35 million (about US$47.1 million, or 56.3 percent of The Gambia’s quota in the Fund).

The ECF-supported program aims to anchor macroeconomic stability and progress on structural reforms achieved under the 2019 Staff Monitored Program (SMP) and would provide a framework to assist the authorities in developing and implementing effective policy responses to address the COVID-19 challenges. The program will also help catalyze much-needed donor financing, particularly in the form of grants for budget support, maintain the momentum in reducing debt vulnerabilities, and deliver on key commitments in the National Development Plan 2018–2021, with the focus on inclusive growth and poverty reduction.

The IMF Executive Board decision enables an immediate disbursement of SDR5 million, about US$6.7 million. Disbursements of the remaining amount will be phased over the duration of the program, subject to six half-yearly reviews.

Following the Executive Board discussion on The Gambia, Mr. Tao Zhang, Deputy Managing Director and Acting Chair issued the following statement:

“The ongoing COVID-19 pandemic will challenge the authorities’ efforts to further strengthen economic performance and resilience. The 39-month ECF arrangement, focused on advancing reforms in revenue mobilization, public financial management, and economic governance to support inclusive growth, will help anchor macroeconomic stability and meet balance-of-payments needs. Grant financing and technical assistance from development partners will be needed to support the authorities’ reform efforts.”

Original source: IMF
Published on 23 March 2020