Press Release No. 11/291

Press Release: IMF Executive Board Completes First Review Under Policy Support Instrument for Cape Verde

July 22, 2011

The Executive Board of the International Monetary Fund (IMF) has completed the first review under a 15-month Policy Support Instrument (PSI) for Cape Verde. The Executive Board’s decision was taken on a lapse of time basis.¹

The review focused on policies to guide the country’s continued recovery from the global economic crisis and to rebuild fiscal and reserve buffers. Economic recovery in Cape Verde continues unabated, driven by the tourism sector and a rapid implementation of the public investment program. Authorities remain committed to macroeconomic stability.

Cape Verde’s PSI was approved on November 22, 2010 (see Press Release No. 10/457). The program’s main objective is to enhance the sustainability of growth and development by maintaining a stable macroeconomic environment and implementing structural reforms. The IMF's framework for PSIs is designed for low-income countries (and small island states) that may not need IMF financial assistance, but still seek close cooperation with the IMF in preparation and endorsement of their policy frameworks.

¹ The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.