The Gambia: IMF Staff Reaches Staff-Level Agreement on the Second Review of the Extended Credit Facility Arrangement
November 4, 2024
- IMF staff and the Gambian authorities have reached a staff-level agreement on economic policies to conclude the second review of the program under the Extended Credit Facility (ECF) arrangement.
- Economic recovery is strengthening while inflation has decelerated significantly.
- The Gambia’s reform agenda is advancing despite challenges to fiscal policy.
Washington, DC: An International Monetary Fund (IMF) team, led by Ms. Eva Jenkner, held discussions in Washington DC with the Gambian authorities. The discussions followed those in Banjul from September 30 to October 11, 2024 (see PR 24/367). A staff-level agreement was reached on the second review of the program supported under the 36-month Extended Credit Facility (ECF) arrangement approved in January 2024 for total access of SDR 74.64 million (about US$99.4 million). Subject to approval by the IMF’s Executive Board, the completion of the review would enable a disbursement of SDR 8.29 million (about US$11.04 million), bringing the total disbursement under the arrangement to about US$33.1 million. The Board date is tentatively scheduled for December 20, 2024.
At the conclusion of the discussions, Ms. Jenkner issued the following statement:
“The authorities remain committed to their reform agenda and program objectives.
“Economic activity is strengthening. Economic growth remains estimated at 5.8 percent for 2024, supported by agriculture, services, telecom, and construction sectors. Inflation reached 10 percent at end-September 2024, from a peak of 18.5 percent at end-September 2023, remaining above the central bank’s medium-term objective of 5 percent.
“Continued policy discussions mainly focused on the fiscal trajectory for 2024 and 2025 with the aim of maintaining fiscal responsibility. This includes increasing the room for responding to large social and developmental needs, protecting the most vulnerable, addressing climate related risks and vulnerabilities, and ensuring gradual clearance of central government arrears and unsettled commitments.
“The ECF supported program is anchored on a medium-term fiscal framework aiming to reduce debt vulnerabilities and to maintain overall macrofinancial stability.
“The mission would like to thank its counterparts for candid and constructive discussions.”
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