Public Information Notice: IMF Executive Board Discusses the Ex Post Assessment of Longer Program Engagement with Mauritania
October 4, 2011
Public Information Notices (PINs) form part of the IMF's efforts to promote transparency of the IMF's views and analysis of economic developments and policies. With the consent of the country (or countries) concerned, PINs are issued after Executive Board discussions of Article IV consultations with member countries, of its surveillance of developments at the regional level, of post-program monitoring, and of ex post assessments of member countries with longer-term program engagements. PINs are also issued after Executive Board discussions of general policy matters, unless otherwise decided by the Executive Board in a particular case.
October 4, 2011
On June 22, 2011, the Executive Board of the International Monetary Fund (IMF) discussed an ex post assessment (EPA) of longer program engagement with Mauritania.
An EPA is required for all members having longer-term program engagement with the Fund. EPAs are intended to provide an opportunity to step back from continuing program relations to consider an analysis of the economic problems facing the country, review progress under Fund-supported programs, and draw forward-looking lessons for future Fund engagement.
Mauritania has had several programs supported by the Fund under its various concessional lending facilities and a first EPA was prepared to provide input to the ongoing arrangement. The EPA looks at Mauritania’s experience with three then-existing Poverty Reduction and Growth Facilities approved in 1999, 2003 and 2006.
The EPA found that the programs helped achieve a basic degree of macroeconomic stability but less progress was achieved on the structural front, and identifies critical areas for successful engagement, including transparency and governance, sound macroeconomic frameworks, a market friendly economic environment and a better targeted social spending.
Executive Board Assessment
Directors broadly agreed with the conclusions of the Ex-Post Assessment of Mauritania’s economic performance under the last three Fund-supported programs. They agreed that the newly finalized poverty-reduction strategy paper and the current Extended Credit Facility (ECF)-supported program appropriately address the challenges identified by the EPA. They stressed that structural reforms aimed at restructuring public enterprises, enhancing the labor market, strengthening transparency, and improving the business climate are essential to promote sustainable employment and broad-based inclusive growth.