Mauritania, IMF reach agreement on $162.8 million loan
IMF president Christine Lagarde at a recent public lecture
London, Nov. 12, 2017 (AltAfrika)– The International Monetery Fund (IMF) has reached a Staff-Level agreement reached on a three-year economic program with Mauritania
The agreement allows IMF to support Mauritania’s economic policies and reforms. The program also aims to foster inclusive growth, maintain macroeconomic stability, restore debt sustainability, and reduce poverty.
An IMF staff team led by Mr. Eric Mottu held discussions with the Mauritanian authorities on an IMF-supported economic program from September 25 to October 6 in Nouakchott and subsequently in Washington.
Mr. Mottu said,“following productive discussions, the IMF team reached a staff-level agreement ad referendum with the Mauritanian authorities on an economic reform program to be supported by a three-year arrangement under the Extended Credit Facility (ECF). The staff-level agreement is subject to approval from IMF management and the IMF’s Executive Board, expected in December 2017. Under the arrangement, Mauritania would have access to IMF credit of up to SDR 115.920 million, or about US$ 162.8 million over three years.
“Mauritania’s economic reform program supported by the IMF aims to foster inclusive and diversified growth to improve the population’s living standards, maintain macroeconomic stability, restore debt sustainability, and reduce poverty. Building on the authorities’ adjustment and reform efforts over the past two years, the program will entail continued gradual fiscal consolidation to strengthen debt sustainability, while creating fiscal space for higher social spending and infrastructure investment through revenue mobilization, expenditure prioritization, and public investment management reforms.
“The authorities’ program will introduce a competitive foreign exchange market along with a modernized monetary policy framework. This will ensure regular access to foreign exchange, increase exchange rate flexibility, address tight liquidity, and support growth. The authorities will strengthen bank supervision, improve the business climate, and expand social safety nets. Mauritania’s reform program supported by the IMF will also catalyze support from development partners, which will help implement the authorities’ strategy for Accelerated Growth and Shared Prosperity (SCAPP) for 2017–30.
“We thank the Mauritanian authorities for their warm welcome and the constructive dialogue, and we look forward to continued strong cooperation.”