Mauritania reaches staff-level deal with IMF on policies and reforms

Nouakchott, Mauritania (PANA) – Following productive discussions, an International Monetary Fund (IMF) team has reached a staff-level agreement ad referendum with Mauritanian authorities on an economic reform programme to be supported by a three-year arrangement under the Fund’s Extended Credit Facility (ECF).

According to the statement, 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 US$ 162.8 million over three years.

An IMF staff team, led by Mr. Eric Mottu,  held discussions with the Mauritanian authorities on an IMF-supported economic programme from September 25 to October 6 in Nouakchott, Mauritania and subsequently in Washington.

In a statement released in Washington and made available to PANA on Saturday, Mr. Mottu said: “Mauritania’s economic reform programme 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 programme 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’ programme 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 programme 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.”
-0- PANA AR 11Nov2017

11 november 2017 10:08:29

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