IMF Approves New Disbursements to Cabo Verde under the ECF and RSF Programs

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IMF Approves New Disbursements to Cabo Verde under the ECF and RSF Programs
IMF Approves New Disbursements to Cabo Verde under the ECF and RSF Programs

Africa-Press – Cape verde. The Executive Board of the International Monetary Fund (IMF) has concluded the fifth review of Cabo Verde’s performance under the Extended Credit Facility (ECF) program, in force since June 2022, authorizing access to approximately USD 5.87 million. At the same time, the review of the Resilience and Sustainability Facility (RSF) agreement, initiated in December 2023, was completed, which will enable an additional disbursement of USD 3.43 million.

According to the Government’s announcement today on the Strategic Development Plan page, the report indicates that Cabo Verde continues to record robust economic growth, supported by the recovery of the tourism sector, increased exports and expansion of private consumption.

The IMF projects real GDP growth of 6% in 2024, accompanied by low inflation, a moderate current account deficit and international reserves at adequate levels to protect the exchange rate parity.

The public debt/GDP ratio continues to decline, driven by consistent economic growth and an improvement in the primary balance.

The Cape Verdean authorities have also managed to preserve macro-financial stability, an aspect widely acknowledged by the IMF, according to the same source.

In approving the fifth review of the ECF, the IMF Executive Board also accepted Cape Verde’s request to modify the performance criteria set for the end of September and December 2024. In addition, the agency supported the delayed implementation of three reform measures provided for in the RSF agreement.

“The IMF Executive Board has completed the fifth review of Cabo Verde’s performance under the 36-month ECF arrangement, approved on June 15, 2022, and the second review of the 18-month RSF arrangement, approved on December 11, 2023. Completion of the fifth ECF review allows the authorities to withdraw the equivalent of SDR 4.5 million (approximately US$5.87 million), while completion of the second RSF review will allow the disbursement of SDR 2.632 million (approximately US$3.43 million),” it reads.

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