IMF Executive Board Completes the Second Reviews Under the Extended Credit Facility and the Extended Fund Facility Arrangements and the First Review under the Resilience and Sustainability Facility Arrangement for the Islamic Republic of Mauritania
June 4, 2024
- The IMF Executive Board completed today the second reviews under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements, and the first review under the Resilience and Sustainability Facility (RSF) arrangement for the Islamic Republic of Mauritania, enabling the authorities to draw SDR 21.3 million (approximately US$36.84 million). The performance in IMF supported programs under the ECF and EFF arrangements and the RSF arrangement is on track.
- In 2024, economic growth is expected to improve, while inflation has slowed down significantly. However, the economic outlook remains uncertain.
- Continued implementation of the programs under the ECF and EFF arrangements, and of the ambitious reform measures to address climate-related vulnerabilities, supported by the RSF arrangement will help address Mauritania’s medium- and long-term challenges and catalyze additional financing from donors and the private sector.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed today the second reviews under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements [1] and the first review under the Resilience and Sustainability Facility (RSF) arrangement [2] for the Islamic Republic of Mauritania. The completion of the reviews allows for an immediate disbursement of SDR 21.3 million (approximately US$36.84 million), of which SDR 2.15 million (about US$3.72 million) under the ECF arrangement, SDR 4.29 million (about US$7.42 million) under the EFF arrangement, and SDR 14.86 million (about US$ 25.70 million) under the RSF arrangement. The Executive Board’s decision was taken on a lapse-of-time basis. [3]
The performance in Fund supported programs under the ECF/EFF arrangements and the RSF arrangement is on track and its implementation has been satisfactory. All end-December quantitative performance criteria (QPCs) were met, except for the deficit of the non-extractive primary balance (NEPB) for which a marginal breach was observed due to an unexpected project loan disbursement in December for the statistical agency and for which the Executive Board granted a waiver of nonobservance. December 2023 and March 2024 SBs were met. The April 2024 reform measure (RM) under the RSF arrangement was also met.
In 2024, economic growth is expected to reach 4.3 percent compared to 3.4 percent in 2023, driven by the performance of the non-extractive sector. Inflation has slowed down significantly, turning out at 2.7 percent in March 2024 compared to 8.2 percent in March 2023, reflecting the downturn in commodity prices and monetary policy tightening. At end- 2023, the NEBP, including grants, amounted to -5.3 percent of GDP (compared to -7.6 percent in 2022). The current account deficit is estimated to have narrowed to 10.0 percent of GDP in 2023 (compared to 14.6 percent at end-2022). International reserves have stabilized and are at an adequate level of 2.0 billion dollars in 2023 (6.3 months of prospective non extractive imports).
The economic outlook remains uncertain. An escalation of geopolitical tensions could affect Mauritania through new terms of trade shocks. Climate disasters could cause deterioration in infrastructure, arable lands, and agriculture production, and keeping food insecurity relatively high. Further delays in the start of the Greater Tortue Ahmeyim (GTA) gas project and/or adverse price fluctuations in commodity markets could lower fiscal revenue, increase external financing needs, and worsen the medium-term debt profile. On the upside, the implementation of future phases of the GTA project or of other major mining projects would improve economic growth and the balance of payments.
Continued implementation of the programs under the ECF and EFF arrangements, and of the ambitious reform measures to address climate-related vulnerabilities, supported by the RSF arrangement, will help address Mauritania’s medium- and long-term challenges and catalyze additional financing from donors and the private sector. In particular, the programs aim to help maintain reserves above the adequate level during the gradual flexibilization of the exchange rate, strengthen policy frameworks, and promote sustainable and inclusive growth. The arrangements will also contribute to the development of human capital, private sector growth, and poverty reduction, and to address climate change challenges.
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Mauritania: Selected Economic indicators, 2022–24 |
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Poverty rate: 33.6 percent (2021) |
Quota: SDR 128.8 million |
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Population: 4.8 million (2022) |
Main exports: iron ore, fish, gold |
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2022 |
2023 |
2024 |
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Proj. |
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(Annual change in percent; unless otherwise indicated) |
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National accounts and prices |
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Real GDP |
6.4 |
3.4 |
4.3 |
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Real extractive GDP |
18.3 |
10.9 |
2.6 |
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Real non-extractive GDP |
3.3 |
1.7 |
4.7 |
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GDP deflator |
1.9 |
2.7 |
4.4 |
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Consumer prices (end of period) |
11.0 |
1.6 |
4.0 |
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(In percent of nonextractive GDP; unless otherwise indicated) |
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Central government operations |
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Revenues and grants |
24.5 |
22.9 |
23.6 |
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Nonextractive |
17.8 |
17.3 |
18.6 |
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Taxes |
13.1 |
12.8 |
14.0 |
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Extractive |
5.0 |
3.7 |
3.1 |
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Grants |
1.8 |
1.8 |
1.9 |
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Expenditure and net lending |
28.1 |
25.4 |
25.2 |
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Current |
16.9 |
16.6 |
15.7 |
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Capital |
11.3 |
8.8 |
9.5 |
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Primary balance (excl. grants) |
-4.4 |
-3.4 |
-2.5 |
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Overall balance (in percent of GDP) |
-3.6 |
-2.5 |
-1.6 |
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Public sector debt (in percent of GDP) 1/ 2/ |
47.5 |
47.9 |
44.5 |
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(Annual change in percent; unless otherwise indicated) |
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Money and Credit |
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Broad money |
2.8 |
4.7 |
5.3 |
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Credit to the private sector |
13.0 |
5.2 |
7.3 |
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Balance of Payments |
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Current account balance (in percent of GDP) |
-14.6 |
-10.0 |
-7.9 |
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Excl. externally financed extractive capital imports |
-0.8 |
-1.6 |
-1.8 |
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Gross official reserves (in millions of US$, eop) 3/ |
1,877 |
2,032 |
1,976 |
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In months of prospective non-extractive imports |
6.2 |
6.3 |
6.4 |
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External public debt (in millions of US$) 2/ |
3,970 |
4,033 |
4,025 |
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In percent of GDP |
40.7 |
38.5 |
38.0 |
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Real effective exchange rate |
… |
… |
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Memorandum items: |
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Nominal GDP (in millions of US$) |
9,763 |
10,481 |
10,589 |
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Price of iron ore (US$/Ton) |
120.7 |
120.3 |
128.4 |
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Sources: Mauritanian authorities; and IMF staff estimates and projections. |
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1/ Including government debt to the central bank recognized in 2018. |
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2/ From 2021, including renegociated, previously passive debt to Kuwait. |
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3/ Excluding hydrocarbon revenue fund. |
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[1] Approved by the IMF Executive Board on January 25, 2023 for an amount of SDR 64.40 million (about 86.9 million dollars) (see press release No. 23/15)
[2] Approved by the IMF Executive Board on December 19, 2023 in the amount of SDR 193.2 million (about 258.21 million dollars).
[3] The Executive Board takes decisions under its lapse-of-time procedure when a proposal can be considered without convening formal discussions.
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