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The International Monetary Fund (IMF) enables the disbursement of US$ 6.66 million to help meet the Gambia’s balance-of-payments and fiscal financing needs amid challenges, related primarily to the war in Ukraine and the lingering impacts of the pandemic. This disbursement brings the total disbursements under the ECF arrangement to US$ 94 million.
The International Monetary Fund (IMF) enables the disbursement of US$ 6.66 million to help meet the country’s balance-of-payments and fiscal financing needs amid challenges, related primarily to the war in Ukraine and the lingering impacts of the pandemic. This disbursement brings the total disbursements under the ECF arrangement to US$ 94 million. The Executive Board also approved the authorities’ request for a waiver for no observance of the continuous performance criterion on the accumulation of new external payment arrears by the central government, based on corrective actions taken by the authorities.
The Gambia has also benefited from an IMF Rapid Credit Facility of SDR 15.55 million and received debt service relief from the IMF under the Catastrophe Containment and Relief Trust, totaling SDR 7.9 million.
The repercussions of the war in Ukraine and the lingering impacts of the COVID-19 pandemic are weighing on The Gambia’s socio-economic environment. Inflation pressures persist and are intensifying. The Gambian authorities are taking measures to address the exogenous shocks and remain committed to strong policies and reforms. The severe foreign exchange shortages that the country experienced in late 2022 have somewhat eased.
The Gambia’s performance under the economic program supported by the Extended Credit Facility (ECF) has been broadly satisfactory despite challenges related to the war in Ukraine, the lingering impacts of the COVID-19 pandemic, major flooding, and trade disruptions. These shocks have constrained economic activity and intensified inflationary pressures and are weighing on the country’s socio-economic environment. Despite pressures, fiscal policy remains appropriately anchored on the approved 2023 budget. Given high debt vulnerabilities, efforts should continue to bolster domestic revenue mobilization and prioritize investment projects.
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The Gambia made significant progress in its structural reform agenda, including in the areas of procurement and SOE institutional framework. They are encouraged to maintain this renewed reform momentum, including by preparing and enforcing the regulations of the newly approved laws, adopting the anti-corruption bill, implementing the recommendations from the recent IMF governance diagnostic mission, and improving financial inclusion and the business environment to support private sector-led growth and poverty reduction. The authorities’ commitment to meeting zero emission targets by 2050 is commendable.
