(Ecofin Agency) - The Gambia, which has been severely hit by covid-19, signed an extended credit facility arrangement with the IMF to revive its economy. In the framework of that arrangement, it is implementing a set of reforms.
The International Monetary Fund (IMF) announced, Friday (June 10), a US$6.7 million disbursement to support Gambia’s post-pandemic recovery. According to the IMF release announcing the disbursement, it will also help address challenges from the war in Ukraine.
The disbursement was approved after the fourth review of the country’s 39-month Extended Credit Facility (ECF) arrangement. The arrangement concluded in March 2020 and entitled The Gambia to 35 million Special Drawing Rights (SDR) but, in January 2021, after the first review, it was revised upward to SDR 55 million.
In the press release published after the first review of the ECF arrangement, the IMF explained that the program aims to “help The Gambia to be better prepared for external shocks, pursue high and inclusive growth, lessen debt vulnerabilities, strengthen public financial management and bolster domestic revenue mobilization.”
According to the IMF, the reforms implemented by The Gambia helped the country achieve positive growth despite the various Covid-19 waves. For 2022, the institution forecasts a 5.6% growth after 4.3% in 2021.