The program monitored by staff (SMP) will help build a solid record of policy and reform implementation, potentially paving the way for a IMF-supported program; the six month SMP support the government’s reform program aimed at (i) supporting the recovery after the crisis COVID-19 pandemic, including providing cash transfers to the poor; and (ii) improving the prospects for inclusive growth by strengthening tax revenues, public finance management and governance.
On September 29, 2021, the Management of the International Monetary Fund (IMF) approved a program monitored by staff (SMP) for the Comoros for the period July – December 2021.
The Comoros have been strongly affected by the COVID-19 pandemic. The number of recorded casualties has remained relatively low, but the pandemic has nonetheless disrupted economic activity and hampered growth.
The authorities’ top priority since the start of the pandemic has been to limit the impact on the health of the population and to preserve macroeconomic and financial stability. This required financial support from the international community, including emergency funding under the Quick Credit Facility (FCR) and Rapid Financing Instrument (RFI) approved in April 2020. The participation of the Comoros in the debt service relief approved under the Catastrophe Containment and Relief Trust and the G20 The Debt Service Suspension Initiative provided additional resources to combat the pandemic and preserve debt sustainability.
The authorities are providing substantial fiscal support to the economy in 2021. Expenditure includes, among other things, substantial cash transfers to the poor, financed in part by the government. IMFthe allocation of special drawing rights (SDRs).
Comoros now has a window of opportunity to strongly recover from the pandemic while improving the prospects for achieving higher and more inclusive growth in the medium term, while preserving debt sustainability. The SMP aims to help the authorities to take stock of the implementation of policies in order to pave the way for a possible agreement under the Extended Credit Facility.
Distributed by APO Group on behalf of the International Monetary Fund (IMF).
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