IMF Executive Board Completes Second Review of Extended Credit Facility Arrangement for Niger and Approves US$20 Million Disbursement
IMF News, June 1, 2018
Source details
- Canonical URL
- IMF Executive Board Completes Second Review of Extended Credit Facility Arrangement for Niger and Approves US$20 Million Disbursement
Other formats
Bibliographic details
- Published: June 1, 2018
Review outcome and disbursement
- The Executive Board completed the second review of Niger’s economic and financial program supported under the Extended Credit Facility (ECF) Arrangement.
- The completion of the second review enables the disbursement of SDR 14.1 million (about US$20 million).
- Total disbursements under the arrangement to date: SDR 42.3 million (about US$60 million).
- Original ECF arrangement (approved January 23, 2017): SDR 98.7 million (about US$134.04 million, or 75 percent of Niger’s quota).
Program objectives and framework
- The ECF-supported program aims to:
- Enhance macroeconomic stability.
- Foster high and equitable growth.
- Boost incomes and create jobs.
- Strengthen foundations for sustainable development.
- The authorities’ Social and Economic Development Plan (PDES) for 2017-21 serves as Niger’s Economic Development Document (EDD), describing macroeconomic, structural, and social policies in support of growth and poverty reduction, and associated external financing needs and major sources of financing.
Program performance and challenges (statements by Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair)
- Overall assessment:
- “Program performance in 2017 was satisfactory, despite an underperformance of fiscal revenue mobilization.”
- “All performance criteria were met. All indicative targets were observed, except for the one on fiscal revenues, which fell well short of what was programmed for 2017.”
- “Implementation of the structural reform agenda is progressing, but slower than envisaged.”
- Near-term macroeconomic outlook and fiscal stance:
- “The 2018 program is set in a realistic macroeconomic framework, with economic growth gradually picking up over the next few years thanks to economic reforms and significant donor support.”
- “Currently elevated inflation should recede quickly and fiscal consolidation is set to bring the deficit below the WAEMU threshold by 2021.”
- “The current account deficit will likely remain large but is fully financed by external support.”
- Policy priorities and concerns:
- “Going forward, it will be important to step up revenue mobilization.”
- “Strong revenue collection in 2018 so far is encouraging, as are the budget measures adopted this year.”
- Need for additional short-term revenue-boosting steps and systematic efforts to build up administration capacity.
- Concern that “the accumulation of new domestic payment arrears during the first quarter should be addressed as soon as possible.”
- “Reforms to strengthen the private sector and to address demographic pressures and gender inequity remain essential for medium-term development prospects.”
- Support for measures to improve the business environment, with program emphasis on steps to improve access to credit.
- “Determined implementation is the key to making Niger’s commendable strengthening of its governance framework a tangible success.”
- On demographics: “Despite recent efforts, a broader and faster push is called for if decisive inroads are to be made.”
- Welcome for submission of the government’s new Economic Development Document that frames the ECF-supported program in a broader and longer-term context; “The revised EDD ensures the national development strategy, the PDES, and the authorities’ overall reform plan are aligned with the stability and development objectives of the ECF-supported program.”
Selected economic indicators, 2016-18 (reported values)
- Population (millions): 18.8
- Per capita GDP: ($) 438.4
- Quota (current, millions SDR, % total): 131.6 (0.03%)
- Literacy/poverty rate: 26.6/45.7
- Main products and exports: Uranium, livestock, petroleum products
- Key export markets: France, Nigeria
- Output
- Real GDP growth (%): 2016: 4.9, 2017: 5.2, 2018 (Est.): 3.9
- Prices
- Inflation - average (in %): 2016: 0.2, 2017: 2.4, 2018 (Est.): 3.9
- General government finances
- Revenue and Grants (% GDP): 2016: 20.5, 2017: 21.4, 2018 (Proj.): 22.7
- Expenditure (% GDP): 2016: 26.6, 2017: 26.5, 2018 (Proj.): 28.6
- Fiscal balance (% GDP): 2016: -6.1, 2017: -5.0, 2018 (Proj.): -5.9
- Basic balance (% GDP)1: 2016: -4.2, 2017: -4.9, 2018 (Proj.): -4.0
- Public debt (% GDP): 2016: 45.1, 2017: 46.1, 2018 (Proj.): 46.2
- Money and Credit
- Broad money (% change): 2016: 8.7, 2017: 6.1, 2018 (Proj.): 9.5
- Credit to private sector (% change): 2016: 12.7, 2017: 2.1, 2018 (Proj.): 7.8
- Balance of payments
- Current account (% GDP): 2016: -15.7, 2017: -13.8, 2018 (Proj.): -16.7
- FDI (% GDP): 2016: 3.5, 2017: 3.7, 2018 (Proj.): 5.6
- Reserves (in months of imports of goods and services): 2016: 4.7, 2017: 4.4
- External debt (% GDP): 2016: 33.0, 2017: 30.1
- Exchange rate
- REER (% change): 2016: 0.04, 2017: 1.53
1/ Revenue minus expenditure net of externally-financed capital expenditure.
IMF Communications Department, Press Release No. 18/211, June 1, 2018.
