The Executive Board of the International Monetary Fund, IMF, has approved US$16.1Million disbursement under the Rapid Credit Facility for The Gambia.
The Board’s approval enables the immediate disbursement of US$16.1 million, which is equivalent to 18.75 percent of The Gambia’s quota in the IMF.
The IMF financial assistance is intended to address urgent balance of payments needs that have arisen on account of the shocks.
A statement from the IMF said a determined and strong policy implementation under the staff monitored program will be critical to restoring macroeconomic stability, help catalyze further donor financing and establish a track record as the basis for future program engagement with the IMF.
In addition, the Board was informed about the IMF Managing Director’s approval of a one-year staff-monitored program (SMP)  to guide policy implementation.
Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, issued the following statement:
“The Gambia faces an urgent balance of payments need triggered by a weak agricultural season, lower tourism receipts due to the political turmoil early this year, and higher commodity prices. These shocks along with past economic mismanagement have exacerbated an already weak economic situation.
“The Gambian authorities are strongly committed to a break with past policies and to restoring macroeconomic stability and debt sustainability. To that end, they intend to implement strong fiscal measures in 2017 and beyond. They have committed to drastically reducing domestic borrowing, including by ending central bank deficit financing, and are taking substantive measures to increase non-tax revenue and reduce expenditures in 2017.