Press Release No. 22/30

IMF Management Completes First Review of the Staff Monitored Program with the Union of the Comoros

February 9, 2022

• IMF Management has approved the first review of Comoros’ Staff-Monitored Program (SMP). The SMP supports the government’s program of reforms. It also aims to help the authorities establish a track record of policy implementation to pave the way to a potential Extended Credit Facility (ECF) arrangement.
• Program implementation at end-September 2021 was satisfactory. In light of delays in preparations for several structural reforms that had been scheduled for completion at end-December 2021, however, these measures were rescheduled to February 2022.
• Comoros’ economic conditions are slowly improving, with growth rising from around zero in 2020 to around 1.6 percent in 2021. A further increase in growth is expected for 2022.

Washington, DC: The Management of the International Monetary Fund (IMF) approved on December 21, 2021 the completion of the first review of Comoros’ Staff Monitored program (SMP) [1] .

Policies under the SMP, which was approved on July 21, 2021 aim to (i) contain and recover from the pandemic; and (ii) start implementing reforms to overcome fragility, boost inclusive growth, and limit risks.

To tackle economic fragility, the government’s top priority is to raise fiscal revenue to support investment in human and physical capital and enhance debt sustainability. The authorities also aim to strengthen the quality of spending, public financial management, State-Owned Enterprises (SOE) oversight, and the financial sector.

To address institutional fragility, the authorities aim to enhance governance, including by strengthening public reporting on large public procurement projects with the inclusion of beneficial ownership information and creating an effective asset declaration framework for senior public officials.

The authorities made satisfactory progress on their reform program through end-September 2021. In particular, they succeeded in raising fiscal revenue and providing substantial cash transfers to the poor.

Timely implementation of the outstanding reforms envisaged under the program will be important for improving economic conditions and establishing a track record towards a potential ECF arrangement.

The IMF supports the government’s efforts through the provision of capacity development in coordination with international partners. It also supports the authorities’ efforts to mobilize external concessional financing.

More information on ECF: Extended Credit Facility