Sao Tome: IMF to disburse over $6M after third extended credit review - EUROPE SAYS
he International Monetary Fund (IMF) has announced that it has reached an agreement with Sao Tome and Principe regarding the third review of the Extended Credit Facility, which will enable a disbursement of. . .
he International Monetary Fund (IMF) has announced that it has reached an agreement with Sao Tome and Principe regarding the third review of the Extended Credit Facility, which will enable a disbursement of more than US$6 million. “The São Toméan authorities and the IMF’s technical team have reached a technical agreement on the steps required to complete the third review of the economic programme supported by the Extended Credit Facility arrangement; subject to the completion of agreed prior actions and approval by the IMF Executive Board, São Tomé and Príncipe will have access to approximately US$6. 1 million (€5. 3 million), bringing the total financial support disbursed by the IMF under the current arrangement to approximately US$19. 9 million (€17. 4 million)”, said the mission chief, Slavi Slavov, as quoted in the statement released on Monday. The agreement with the IMF was initially approved for a total amount of around US$25 million (€21. 8 million) on 19 December 2024, with a one-year extension approved at the end of December last year, along with an increase in programme funding of US$6. 1 million. According to the IMF, the Portuguese-speaking African archipelago “faces an unfavourable external environment, a prolonged shock to electricity supply and delays in the energy transition”, with the effects of the war in the Middle East and power cuts posing “serious risks to economic recovery”. The Fund’s experts forecast modest economic growth of 0. 4%, accelerating to 2. 75% in the medium term, and warn that “energy sector reform remains crucial to overcoming the impact of global shocks, fostering growth and alleviating pressures on public debt and foreign exchange reserves”. Tags:EconomyIMFinternationalInternational Monetary FundMNAUncategorized