The International Monetary Fund (IMF) has revealed that its executive board has approved a 36-month arrangement under the Extended Credit Facility (ECF), totalling SDR 74.64 million (approximately US$100 million). Concurrently, the board concluded the 2023 Article IV consultation with The Gambia.
This decision allows for an immediate disbursement of SDR 10.9 million (US$14.56 million) to bolster The Gambia's economic recovery and tackle challenges highlighted in the 2023-2027 National Development Plan. The policy consultation delved into crucial areas such as inflation drivers, macroeconomic impacts of gender inequality, climate-related risks, debt sustainability, and external stability. Despite grappling with external shocks, The Gambia exhibits resilience with anticipated economic growth of 5.6 percent in 2023, propelled by tourism, construction, and infrastructure projects, according to a press release by IMF.
Deputy Managing Director and Acting Chair Mr. Bo Li stated in an IMF press release: "The Gambia has been consolidating its democratic transformation. The 2020‑23 ECF arrangement accompanied the country’s socio‑economic reforms and helped alleviate the repercussions of the COVID‑19 pandemic and Russia’s war in Ukraine. Nonetheless, inflation persists, foreign exchange pressures are reemerging, and debt vulnerabilities remain high. The authorities are committed to maintaining macroeconomic stability, reducing debt vulnerabilities, and pursuing reforms under a new IMF‑supported program."
Li further encouraged the authorities to persist in their ambitious structural reform agenda. He said: "Adopting strong climate-related policies and tackling gender inequality would also support more resilient and inclusive growth," according to another press release by IMF.
According to information from the IMF Executive Directors and Voting Power webpage provided by IMF itself, the IMF Executive Board comprises 24 directors elected by member countries or groups of countries. The managing director acts as the board's chairman, which typically meets multiple times weekly to conduct its business.