São Tomé and Príncipe Gets FEC Approval From IMF
The Central African country’s extended credit facility agreement has been reviewed and maintained for …
The Central African country’s extended credit facility agreement was reviewed and renewed for the third time by the International Monetary Fund.
The International Monetary Fund The third Executive Board (IMF) review of the São Tomé and Príncipe Extended Credit Facility Agreement resulted in an immediate disbursement of approximately $ 2.7 million.
Following the IMF’s decision, São Tomé and Príncipe’s total disbursements under the credit facility reached approximately USD 12.91 million.
São Tomé and Príncipe’s extended credit facility agreement, which was first approved in October 2019 as part of a 40-month plan for approximately $ 18.15 million, was designed to support government economic reforms.
The reform program aims at macroeconomic stability, as well as reducing the country’s debt exposure, relieving pressure on the balance of payments and creating a stable basis for robust and inclusive growth.
The third review follows the second review of the Extended Credit Facility which took place in February of this year with a disbursement of approximately $ 2.73 million, and the first review in July of last year, which had a disbursement of approximately $ 2.67 million.
At around the time of the first review, there was also an increase in an extended credit facility agreement totaling $ 2.08 million that was approved by the IMF Board of Directors.
After a board discussion during the third review, Deputy Managing Director and Acting IMF President Bo Li said in a statement: “The authorities’ swift actions and international support have helped São Tomé and Príncipe to mitigate the impact of the pandemic linked to the pandemic. crisis. However, uncertainties remain high and consistent and continuous program implementation and structural reforms as well as adequate immunization are essential to ensure more resilient, sustained and inclusive green growth. “
Li added, “The authorities’ program performance remains favorable despite the difficult pandemic environment. Meeting immediate social and economic needs and implementing gradual fiscal consolidation are essential to support economic recovery and preserve debt sustainability. “
He also addressed reforms in the energy sector: “In view of the recent electricity shortages, accelerating reforms in the energy sector would help to provide reliable and low-cost electricity supply, support development and growth potential of the country, and reduce pressures on public debt and foreign exchange reserves.
The IMF provided financial support to several African countries during the Covid-19 pandemic in April last year.