## European Union Funding for IMF Capacity Development — A Lasting Partnership on Capacity Development

## Source details

**Canonical URL:** [European Union Funding for IMF Capacity Development — A Lasting Partnership on Capacity Development](https://www.imf.org/-/media/files/capacity-developement/partners/eu-imf-capacity-development-partnership-brochure-january-2026.pdf)

## Other formats

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### Partnership overview and financing
- The European Union is a leading supporter of IMF capacity development, contributing to macroeconomic and financial stability in emerging markets and low-income countries and supporting the EU’s Global Gateway agenda.
- The European Union provided contributions of USD 202 million to the Catastrophe Containment and Relief Trust and USD 103 million to the Poverty Reduction and Growth Trust.
- All-Time EU Contribution to IMF Capacity Development Programs (until December 2025):
  - 61 .8 %
  - 17 .2 %
  - Thematic Funds 21.0 %
  - Bilateral programs
  - 500 USD MILLION
  - Nearly EUROPEAN UNION

### How IMF capacity development contributes to the Global Gateway agenda
- Public Financial Management
  - Better planning, budgeting, and execution of public investments improves fiscal and economic stability, fostering private sector dynamism and growth.
- Macro-Fiscal Policies
  - Effective macro-fiscal policies contribute to economic stability and maximize the impact of projects for people and the economy.
- Revenue Administration
  - Increases revenues to finance public services, infrastructure, and development projects, including Global Gateway flagships; a robust revenue administration fosters private sector investment.
- Financial Supervision and Central Banking
  - Enhancing financial stability and financial markets ensures domestic savings can be used for productive investments; inflation control and currency stability enhance confidence.
- Debt Management and Debt Market Development
  - Debt sustainability and debt management strategies promote investor confidence and facilitate market development to help unlock financing, including from partners and the private sector.
- Statistics
  - Harmonized and accurate economic indicators provide the basis for informed decisions on all aspects of Global Gateway projects, enhancing transparency and increasing confidence.
- Training on Structural Policies
  - Courses that strengthen institutional capacities on climate economics support green Global Gateway projects; debt sustainability courses help ensure countries can manage debt incurred for infrastructure projects.
- Regional Capacity Development Centers
  - The EU supports 12 IMF Regional Capacity Development Centers around the world (example: CCAMTAC — Caucasus, Central Asia, and Mongolia Regional Technical Assistance Center).

### Thematic and regional instruments supported by the EU
- Global Public Finance Partnership (GPFP)
  - Objective: Foster strong revenue mobilization policies, well-functioning tax administrations, effective expenditure policies, and sound public financial management practices.
- Tax Administration Diagnostic Assessment Tool (TADAT)
  - Objective: Provide an objective assessment of the key components of a country’s system of tax administration to improve its administration functions, processes, and institutions.
- Managing Natural Resources Wealth (MNRW)
  - Objective: Help countries build capacity to manage their resource wealth effectively and sustainably.
- Data for Decisions (D4D)
  - Objective: Put more and better data in the hands of decision-makers, thereby enhancing evidence-based macroeconomic policies and supporting growth.
- Southeast Europe Fund
  - Objective: Support countries in Southeast Europe in applying best international practices in public financial management, revenue administration and tax policy, and support their preparations in the EU accession process.
- Somalia Country Fund
  - Objective: Support Somalia’s efforts to strengthen its capacity for making economic and financial institutions become more effective, transparent, and accountable.
- Ukraine Capacity Development Fund
  - Objective: Increase the IMF capacity development work in Ukraine, in line with the priorities set out in the IMF lending program, and in close coordination with international partners.

### Selected country and regional outcomes supported by EU-funded IMF capacity development
- Mongolia
  - Result: Revenues soared by around USD 1 billion per year following improvements in tax policy, law changes and improvements in administration.
- Malawi
  - Result: The Malawi Revenue Authority recorded significant revenue growth, spiking by 98 percent in 2023–2024, after implementing measures to improve data matching.
- Tanzania
  - Result: Resumed publishing finance statistics data for the central government, covering fiscal years as of 2019.
- Jamaica
  - Result: Conducted a top-down stress test and incorporated related scenarios into fiscal planning.
- Barbados
  - Result: Began incorporating natural disaster risks into its assessment framework and adopted natural disaster stress-testing guidelines.
- Costa Rica
  - Result: Designed and implemented a single payment system for social resources, digitalized all beneficiary payments, promoted financial inclusion, and ensured data traceability.
- Yemen
  - Result: Produced government finance statistics and comprehensive public sector debt statistics to strengthen evidence-based policymaking and support development goals and external financing and debt relief.
- Nigeria
  - Result: Strengthened regulations for expected credit loss under IFRS 9, updating central bank approaches to improve financial sector stability and reduce financing costs.
- Ghana
  - Result: Developed a medium-term revenue strategy, advanced the Integrated Tax Administration System and digital strategy.
- Democratic Republic of Congo
  - Result: Enhanced financial supervision, stress testing, and financial safety nets.
- Zambia
  - Result: Strengthened financial markets infrastructure.
- Angola
  - Result: Rebased its GDP to update the size of its economy to foster private investment for the LOBITO corridor and improve impact assessment of infrastructure projects.

### Strategic alignment and objectives
- The IMF’s support for Southeastern- and Eastern Europe aligns with countries’ path towards EU accession, supporting sustainability of reforms and objectives consistent with the EU-Western Balkans Economic and Financial Dialogue and the EU’s Structural Reform Facility.
- The Global Public Finance Partnership helps mobilize revenues and set spending priorities with a focus on efficient and transparent use of public resources in fragile and conflict states, aligning with the EU’s 360-degree approach to build foundations for Global Gateway investments.
- Strengthening financial resilience in the most fragile and vulnerable countries:
  - With EU support, IMF capacity development enables policy reforms that reinforce governance, improve fiscal frameworks, and boost resilience to shocks in conflict-affected states such as Lebanon, Syria, and Ukraine.
  - Regional initiatives, including Improving Economic Governance in Africa and activities in the Pacific and Caribbean, enhance stability, address fragility, and strengthen fiscal systems to help economies vulnerable to climate change.

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_Source: https://www.imf.org/-/media/files/capacity-developement/partners/eu-imf-capacity-development-partnership-brochure-january-2026.pdf_