IMF Staff completes Discussions for a US$221 Million Disbursement to Senegal in response to the COVID-19 Pandemic
IMF News, April 1, 2020
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- IMF Staff completes Discussions for a US$221 Million Disbursement to Senegal in response to the COVID-19 Pandemic
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Bibliographic details
- Published: April 1, 2020
Key decision and timeline
- Press Release No. 20/129
- Date: April 1, 2020
- IMF staff completed discussions for emergency access to the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI) to help Senegal address the economic challenges posed by the pandemic.
- IMF Executive Board consideration of the Senegalese authorities’ request is expected by mid-April.
- Contact: PRESS OFFICER: Lucie Mboto Fouda; Phone: +1 202 623-7100; Email: MEDIA@IMF.org
Financial package and composition
- Total available on approval: US$221 million.
- Equivalent in SDRs: SDR 161.8 million (about US$221 million).
- Breakdown:
- Two thirds or US$ 147.3 million under the Rapid Financing Instrument (RFI).
- One third or US$ 73.6 million under the Rapid Credit Facility (RCF).
- Purpose: to meet urgent budgetary and balance of payments needs stemming from the COVID-19 pandemic and deterioration of global economic conditions.
Macroeconomic impact and needs
- The COVID-19 pandemic has weakened the macroeconomic outlook for Senegal’s economy.
- Factors driving the weakening:
- Containment measures to avoid the propagation of the virus.
- Lower external demand.
- Reduced remittances.
- Sudden stop of travel and tourism.
- Result: significant impact on growth and generation of an urgent balance-of-payments (BOP) need.
Policy response and use of IMF support
- IMF support aims to:
- Preserve fiscal space for essential COVID-19-related health expenditures.
- Catalyze additional donor support.
- Senegalese authorities’ measures to mitigate health and economic impact:
- Declared a state of emergency.
- Closed schools.
- Suspended flights.
- Banned public gatherings.
- Put a curfew in place.
- Implemented a comprehensive plan to upgrade the health system and contain the economic impact.
- Set up a national solidarity fund.
- Provided targeted support to vulnerable households and firms.
Source: IMF press release, April 1, 2020.