Press Release: IMF Executive Board Reviews Noncomplying Disbursements to the Islamic Republic of Mauritania
March 29, 2006Press Release No. 06/64
The Executive Board of the International Monetary Fund (IMF) has reviewed matters related to two noncomplying disbursements to the Islamic Republic of Mauritania, each in an amount equivalent to SDR 6.07 million (about US$8.7 million), that were made in June and December 2002 following the completion by the Executive Board of the fifth and sixth reviews under the 1999-2002 Poverty Reduction and Growth Facility (PRGF) arrangement (see Press Release No. 99/32). The Executive Board agreed that the Islamic Republic of Mauritania would be expected to make an early repayment of the two noncomplying disbursements. The Board has also reviewed matters related to one noncomplying disbursement under the 2003 PRGF arrangement and agreed that, in view of the authorities' voluntary repayment of that disbursement on November 4, 2004, no further action was needed.
The transition government, in office since August 2005, acknowledged that in each case information provided by the previous government was inaccurate and expressed regret over the long-standing practice of communicating inaccurate information to the Fund. The new authorities have provided assurances that this practice has been irrevocably stopped and are implementing measures to ensure accurate data reporting to the IMF.
The transition government has also embarked on a Staff-Monitored Program (SMP) covering the first half of 2006 that should pave the way for a PRGF-supported program (see Press Release No. 06/19). The SMP aims at consolidating progress toward macroeconomic stability and implementing key reforms, focusing on data transparency, oil revenue management, and public expenditure management. The authorities expect to complete by end-May 2006 the remedial actions that had been requested by the IMF Executive Board in December 2005 for Mauritania to qualify for the Multilateral Debt Reduction Initiative (see Press Release No. 05/308). The staff will work closely with the authorities to monitor the external position and developments in the period leading up to this consideration.