The International Monetary Fund (IMF) Executive Board has completed the fourth review under the Union of the Comoros’ Extended Credit Facility (ECF) arrangement. This decision enables an immediate disbursement of SDR 3.56 million, equivalent to approximately US$ 4.87 million, raising total disbursements under the program to around $23.7 million.
The ECF arrangement for Comoros, approved on June 1, 2023, allows access to SDR 32.04 million (about US$ 43 million). The IMF board also approved requests from Comorian authorities for waivers concerning nonobservance of certain quantitative performance criteria (QPCs) and modifications to end-December 2025 QPCs on tax revenue and domestic primary balance.
Progress has been noted in achieving program objectives; however, continued effort is needed to maintain reform momentum. The authorities remain committed to the ECF-supported program despite setbacks, with two out of five QPCs met by December 2024 and eight out of eleven structural benchmarks achieved between November 2024 and May 2025.
The economic reform program aims to reduce fragility and increase resilience by building fiscal buffers, reducing debt vulnerabilities, strengthening the financial sector, and enhancing governance. Key policy priorities include mobilizing domestic revenue through tax reforms, stabilizing the financial sector through restructuring efforts at state-owned banks, and improving governance through public financial management (PFM) and anti-corruption reforms.
Economic conditions are broadly stable but face risks. Growth is estimated at 3.3 percent in 2024 with a projection of rising to 3.8 percent in 2025 due to public investment and recovering private sector credit. Inflation rose from an average of 5 percent in 2024 to reach 7.3 percent year-on-year in March 2025 due to food price pressures from cyclone-related supply disruptions.
Fiscal consolidation was weaker than expected in 2024 because of revenue shortfalls; however, stronger adjustments are planned for this year supported by corrective measures. The external position remains stable with a current account deficit estimated at 2.2 percent of GDP in addition to international reserves covering more than seven months' worth of imports.
Deputy Managing Director Nigel Clarke commented: “The Comorian authorities remain committed to their reform agenda under the Extended Credit Facility-supported program despite setbacks in 2024 linked to a lengthy political transition and external shocks.” He emphasized that while challenges persist due mainly due food inflation alongside supply shocks related cyclones—the country’s structural vulnerabilities as small island nation exposed climate risks need addressing through continued engagement with IMF partners ensure macroeconomic stability advancement reform efforts.”