News Brief: IMF Considers São Tomé and Príncipe Under the HIPC Initiative
November 22, 2000
The Executive Board of the International Monetary Fund (IMF) considered São Tomé and Príncipe on a preliminary basis and found it to be eligible for assistance under the Enhanced Initiative for Heavily Indebted Poor Countries (HIPC). The Board is expected to discuss São Tomé and Príncipe's decision point under the Initiative before the end of the year.
In commenting on the Executive Board discussion on São Tomé and Príncipe, Eduardo Aninat, Deputy Managing Director and Acting Chairman, said:
"The Executive Board agreed that São Tomé and Príncipe is eligible for assistance under the enhanced HIPC Initiative, and that the authorities' track record of performance under IMF- and World Bank- supported programs has been satisfactory. Directors looked forward to São Tomé and Príncipe's reaching the decision point before end-2000, subject to the completion of the first semiannual review of the PRGF-supported program and the establishment of a special treasury account at the central bank to track savings arising from possible assistance under the enhanced HIPC Initiative.
"Preparation of a full Poverty Reduction Strategy Paper and continuing satisfactory performance under the PRGF-supported program, together with key measures in the areas of governance, public expenditure management, and the social sectors will constitute the basis for São Tomé and Príncipe's reaching its completion point under the enhanced HIPC Initiative. The implementation of the authorities' policies as set out in the Interim Poverty Reduction Strategy Paper and in the PRGF-supported program will enhance the basis for sustained high quality growth and poverty reduction over the medium-term," Mr. Aninat said.