IMF Executive Board Completes the Fourth and Fifth Reviews of the Extended Arrangement for Gabon, and Approves US$123.5 Million Disbursement
December 16, 2019
- Prudent macroeconomic policies have contributed to Gabon’s economic recovery
- The government’s reform program supported by the IMF aims to restore macroeconomic stability and lay the foundation for inclusive growth.
- IMF Executive Board’s decision enables an immediate disbursement of US$123.5 millions
On December 16, 2019, the Executive Board of the International Monetary
Fund (IMF) completed the fourth and fifth reviews of Gabon’s economic
program supported by an extended arrangement under the Extended Fund
. Completion of the review enables an immediate disbursement of an amount
equivalent to SDR89.34 million (about US$123.5million). Today’s Executive
Board brings total disbursements under the arrangement so far to an amount
equivalent to SDR375.06 million (about US$518.5 million).
In completing the fourth and fifth reviews, the Executive Board also
approved the authorities’ request for waiver of nonobservance of
performance criteria pertaining to the claims of the banking system and of
the central bank on the central government, as well as waiver of
non-observance of a performance criterion pertaining to external payments
arrears; and a rephasing of purchase under the program.
Gabon’s three-year extended arrangement supported by the IMF was approved
by the Executive Board on June 19, 2017 (see Press Release
) for a total amount equivalent to SDR 464.4 million (about US$642 million
at the time of approval), the equivalent of 215 percent of Gabon’s quota.
The government’s reform program aims to restore macroeconomic stability and
lay the foundation for inclusive growth. It also seeks to attain debt
sustainability at the national level and contribute to the external
stability of the Central African Economic and Monetary Union (CEMAC).
Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy
Managing Director and Acting Chair, made the following statement:
“Gabon’s performance under the program supported by the IMF’s Extended Fund
Facility Arrangement has been broadly satisfactory. Macroeconomic
conditions have continued to improve, with growth slowly picking-up, fiscal
and external positions improving, and public debt declining. Going forward,
bold and ambitious reforms are needed to generate higher, more inclusive,
and resilient growth.
“Efforts should continue to further boost domestic revenue and contain
non-priority spending, while protecting investment and enhancing social
protection. Improving public finance management and the efficiency of
public investment is also important for growth prospects.
“Sustained implementation of structural reforms is critical. Efforts to
close infrastructure gaps, improve human capital, deepen financial
intermediation, clear domestic arrears, and enhance governance and
anti-corruption measures are necessary to improve the business climate and
achieve higher and inclusive growth.
“Gabon’s program is supported by the implementation of supportive policies
and reforms by the CEMAC regional institutions in the areas of foreign
exchange regulations, the monetary policy framework, and increasing
regional net foreign assets, which are critical to the program’s success.”
The Extended Fund Facility (EFF) was established to provide
assistance to countries: (i) experiencing serious payments
imbalances because of structural impediments; or (ii) characterized
by slow growth and an inherently weak balance of payments position.
It provides assistance in support of comprehensive programs that
include policies of the scope and character required to correct
structural imbalances over an extended period.
IMF Communications Department
PRESS OFFICER: Lucie Mboto Fouda
Phone: +1 202 623-7100Email: MEDIA@IMF.org