Gambia's Economic Situation Worriesome for IMF

The Independent (Banjul)

December 22, 2003
Posted to the web December 22, 2003

Banjul

The staff of the International Monetary Fund (IMF), which is currently
preparing for the Executive Board's completion in late January of an Article
IV review of The Gambia, issued a disquieting statement about the Gambian
economy, which it described as worrisome.

In a statement that would keep the Gambia government contemplating the
misfortunes of the country's economy the IMF said it is concerned about "the
deteriorating economic situation in The Gambia. Macroeconomic imbalances
have worsened, as evidenced by the weak growth performance, high inflation,
the sharp depreciation of the exchange rate and an increasing fiscal
deficit. Monetary growth has been substantially higher than warranted.


"Moreover, information that has recently been made available to the staff
suggest that data on foreign international reserves provided to the Fund
earlier may have been significantly overstated and that were associated
inaccuracies in data on government expenditure, fiscal balances and credit
flows in 2001. These developments threaten to impede progress on poverty
reduction.

"Discussion on the country's PRGF- supported program, which is currently
off-track, could be resumed once additional information has been received
and understanding are reached on the appropriate corrective actions. A
resumption of Fund assistance and donors' budgetary support is important in
bringing about a return to macroeconomic stability and reducing poverty in
The Gambia. The Managing Director of the IMF has written to The Gambia
authorities regarding the understanding necessary to bring the
PRGF-supported program back on track. The Fund staff is also pursuing the
issues regarding data on foreign international reserves with the authorities
in order to ascertain the relevant facts."

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