(Ecofin Agency) - Mauritania will receive $52 million in financing from the International Monetary Fund (IMF). This was announced by the institution in a press release issued on September 2.

The new disbursement is part of an increase in the amount of the Extended Credit Facility (ECF) agreement concluded in December 2017 between the Bretton Woods institution and the Mauritanian government. Initially $164 million, the agreement increases to $193 million.

This strategy was motivated by the current pandemic context which, beyond the health crisis, created a worrying economic crisis by increasing investment needs, while restricting the sources of income of the State.

Five months after the disbursement of $130 million in emergency financing to Nouakchott, the IMF has just approved $52 million in new financing to help the Mauritanian authorities pursue their reforms. These reforms are aimed at better managing the budget deficit to facilitate the implementation of priority social spending, rebalancing the balance of payments, and ensuring macroeconomic stability.

“The IMF's continued financial assistance, along with other financings from the international community, will help Mauritania respond effectively to the covid-19 crisis by providing room for increased spending on health services and social protection programs,” said IMF Deputy Managing Director Mitsuhiro Furusawa (pictured). “Additional external support will be needed to meet potential financing needs next year,” he added.

For this year, the IMF expects a 3.2% contraction in Mauritania's economy, compared to growth of 5.9% in 2019.

Moutiou Adjibi Nourou