Mamadou Barry, IMF Resident Representative The Gambia, and President Adama Barrow
By Buba Gagigo
The International Monetary Fund (IMF) has approved a $100 million loan for The Gambia under a new Extended Credit Facility (ECF) arrangement. This vital financial injection aims to bolster the country’s economic recovery, tackle inflation, and promote sustainable growth.
The 36-month ECF-supported program aims to enhance economic recovery, combat inflation, deal with foreign exchange challenges, minimize debt vulnerabilities, promote structural reforms, and stimulate robust and inclusive growth.
“Board approved a new 36-month arrangement Extended Credit Facility (ECF) arrangement, with requested access of SDR 74.64 million (around US$100 million). The ECF-supported program aims to strengthen economic recovery, tackle inflation, address foreign exchange pressures, reduce debt vulnerabilities, advance structural reforms, and foster strong and inclusive growth,” the IMF said.
In addition to the approved funds, the IMF highlighted that the Article IV policy consultation covered key areas such as drivers of inflation, the macroeconomic impact of gender disparities, climate-related risks and policies, debt sustainability, and external stability. The decision of the Executive Board triggers an immediate disbursement of SDR 10.9 million (US$14.56 million).
The approval of the Extended Credit Facility (ECF) comes with an immediate disbursement of SDR 10.9 million (equivalent to US$14.56 million). The initiative is set to build upon the achievements of the recently concluded 2020-23 ECF-supported program, aligning with the Gambia’s 2023-2027 Recovery-Focused National Development Plan. The IMF emphasized that the program’s focus includes addressing inflation drivers, assessing macroeconomic implications of gender disparities, managing climate-related risks and policies, ensuring debt sustainability, and maintaining external stability.
“The program will build on the recently completed 2020-23 ECF-supported program and the authorities’ 2023-2027 Recovery-Focused National Development Plan and aims to strengthen economic recovery, tackle inflation, address foreign exchange pressures, reduce debt vulnerabilities, advance structural reforms, and foster strong and inclusive growth,” IMF stated.