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IMF Approves US$100 Million Financial Support Following Consultation with The Gambia

The Gambia

The International Monetary Fund (IMF) has announced the approval of a 36-month arrangement under the Extended Credit Facility (ECF), amounting to SDR 74.64 million (approximately US$100 million). Simultaneously, the board concluded the 2023 Article IV consultation with The Gambia.

This decision facilitates an immediate disbursement of SDR 10.9 million (US$14.56 million) to support The Gambia‘s economic recovery, addressing challenges outlined in the 2023-2027 National Development Plan. The policy consultation covered essential areas such as inflation drivers, the macroeconomic impact of gender inequality, climate-related risks, debt sustainability, and external stability. Despite facing external shocks, The Gambia displays resilience, anticipating economic growth of 5.6 percent in 2023, driven by tourism, construction, and infrastructure projects, as stated in an IMF press release.

Deputy Managing Director and Acting Chair Mr. Bo Li commented in an IMF press release, stating, “The Gambia has been consolidating its democratic transformation.” He noted that the previous ECF arrangement played a vital role in supporting socio-economic reforms and mitigating the impacts of the COVID-19 pandemic and Russia’s war in Ukraine. However, challenges such as persistent inflation, reemerging foreign exchange pressures, and high debt vulnerabilities persist. The authorities are committed to maintaining macroeconomic stability, reducing debt vulnerabilities, and implementing reforms under a new IMF-supported program.

Li encouraged The Gambia to persist in its ambitious structural reform agenda and emphasized the importance of adopting strong climate-related policies and addressing gender inequality to support resilient and inclusive growth, according to another IMF press release.

The IMF Executive Board, comprising 24 directors elected by member countries, plays a pivotal role in approving such arrangements. The Managing Director, serving as the board’s chairman, oversees its meetings, typically conducted multiple times weekly, as highlighted on the IMF Executive Directors and Voting Power webpage.