Tuesday, January 11, 2011
The Executive Board of the International Monetary Fund (IMF) has confirmed that the Gambia economy continues to perform well under the Extended Credit Facility (ECF) with growth set to remain at about 5.5 to 6 percent a year, while inflation is kept in check. The authorities have taken measures to correct the fiscal slippages of the first half of the year and adjust to a reduced resource envelope.
This was disclosed in a news release issued on January 7th, 2010 by the IMF Executive Board after completing the seventh review of The Gambia's economic performance under a programme supported by the ECF. The Board also approved waivers for the non-observance of the end-March 2010 performance criteria on the floor on the basic balance and on the floor on the net usable international reserves of the Central Bank.
According to the release, the Board's decision enables the immediate disbursement of an amount equivalent to SDR 2.3325 million (about US$ 3.56 million), bringing total disbursement under the ECF to The Gambia to an amount equivalent to SDR 22.55 million (about US$ 34.38 million). At the conclusion of the Executive Board's discussion on The Gambia, the release added, Mr. Murilo Portugal, deputy managing director and acting chair, stated: "The Gambian economy has continued to perform well under the Extended Credit Facility, with growth set to remain at about 5.5 to 6 percent a year, while inflation is kept in check. The authorities have taken measures to correct the fiscal slippages of the first half of the year and adjust to a reduced resource envelope.
"The 2011 budget will be anchored on limiting government’s domestic borrowing to ease pressure on inflation, interest rates, and the exchange rate and to achieve substantial fiscal savings. To help implement this agenda, the authorities intend to stabilise revenue through the introduction of a new formula for fuel price adjustments that would allow for greater pass-through of movements in import prices. The authorities are also taking steps to ensure a smooth introduction of a VAT by January 2013. The budget includes allocations for poverty reducing expenditures, which could also help garner greater donor support. Key structural reforms will contribute to maintaining macroeconomic stability and strong growth. In particular, reforms in public financial management will enhance fiscal discipline and better control government expenditures. Steps to strengthen bank supervision will help to ensure stability in the financial sector."
This was disclosed in a news release issued on January 7th, 2010 by the IMF Executive Board after completing the seventh review of The Gambia's economic performance under a programme supported by the ECF. The Board also approved waivers for the non-observance of the end-March 2010 performance criteria on the floor on the basic balance and on the floor on the net usable international reserves of the Central Bank.
According to the release, the Board's decision enables the immediate disbursement of an amount equivalent to SDR 2.3325 million (about US$ 3.56 million), bringing total disbursement under the ECF to The Gambia to an amount equivalent to SDR 22.55 million (about US$ 34.38 million). At the conclusion of the Executive Board's discussion on The Gambia, the release added, Mr. Murilo Portugal, deputy managing director and acting chair, stated: "The Gambian economy has continued to perform well under the Extended Credit Facility, with growth set to remain at about 5.5 to 6 percent a year, while inflation is kept in check. The authorities have taken measures to correct the fiscal slippages of the first half of the year and adjust to a reduced resource envelope.
"The 2011 budget will be anchored on limiting government’s domestic borrowing to ease pressure on inflation, interest rates, and the exchange rate and to achieve substantial fiscal savings. To help implement this agenda, the authorities intend to stabilise revenue through the introduction of a new formula for fuel price adjustments that would allow for greater pass-through of movements in import prices. The authorities are also taking steps to ensure a smooth introduction of a VAT by January 2013. The budget includes allocations for poverty reducing expenditures, which could also help garner greater donor support. Key structural reforms will contribute to maintaining macroeconomic stability and strong growth. In particular, reforms in public financial management will enhance fiscal discipline and better control government expenditures. Steps to strengthen bank supervision will help to ensure stability in the financial sector."
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