IMF Executive Board Approves US$275.8 Million ECF Arrangement for Niger
IMF News, December 8, 2021
Source details
- Canonical URL
- IMF Executive Board Approves US$275.8 Million ECF Arrangement for Niger
Other formats
Bibliographic details
- Published: December 8, 2021
Arrangement summary
- Approved a three-year arrangement under the Extended Credit Facility (ECF) equivalent to SDR197.4 million (about US$275.8 million or 150 percent of quota).
- Immediate disbursement: SDR 39.48 million (about US$55.2 million or 30 percent of quota).
- Arrangement expected to catalyze additional bilateral and multilateral financial support.
Context and outlook
- Key shocks: decline in economic activity from the COVID-19 pandemic, heightened fiscal pressures from security challenges, and climate-related shocks.
- Outlook: “The Nigerien economy is expected to rebound in 2021 with economic activity gaining momentum in the medium term, with the start of oil exports through a new pipeline to the Benin coast.”
- Downside risks highlighted: significant risks related to heightened security challenges in the Sahel region and Niger’s increased exposure to the effects of climate change.
Program objectives and reform priorities
- Macroeconomic stability and foundations for stronger, more inclusive growth.
- Fiscal space and spending quality:
- Broaden domestic revenue mobilization by broadening the tax base, reducing exemptions, and revising the tax code.
- Bolster the quality of public spending, including scaling up effective social programs and improving public investment management.
- Ensure transparent and efficient management of oil revenues.
- Support efforts to meet the regional fiscal deficit convergence criterion and strengthen debt management.
- Governance, anti-corruption, and private sector development:
- Promote development of a diversified private sector and implement reforms to strengthen governance and anti-corruption frameworks to mitigate fiscal risks and strengthen the business environment.
- Implement transparency commitments related to pandemic emergency spending, including reporting and publication of beneficial ownership information of companies awarded pandemic-related contracts.
- Authorities plan to extend collection and publication of beneficial ownership information to non-competitive procurement contracts and accelerate implementation of the new asset declaration regime.
- Emphasis: “Firm commitment to reforms and their steadfast implementation will be key to success and to catalyzing additional donor support.”
Key economic and financial indicators (selected, 2018–22)
- National income and prices (annual percentage change)
- GDP at constant prices: 2018: 7.2; 2019: 5.9; 2020: 3.6; 2021: 5.4; 2022: 6.5
- Export volume: 2018: -6.9; 2019: -2.2; 2020: -1.1; 2021: -7.8; 2022: 8.4
- Import volume: 2018: 8.7; 2019: 9.7; 2020: 1.8; 2021: 3.9; 2022: 13.7
- CPI (annual average): 2018: 2.8; 2019: -2.5; 2020: 2.9; 2021: 2.5
- CPI (end-of-period): 2018: 1.6; 2019: -2.3; 2020: 3.1; 2021: 3.0
- Money and credit (annual percentage change)
- Broad money: 2018: -2.1; 2019: 15.0; 2020: 17.0; 2021: 11.6; 2022: 14.9
- Domestic credit: 2018: 11.4; 2019: -12.2; 2020: 25.2; 2021: 12.3; 2022: 17.9
- Credit to the government (net): 2018: 127.8; 2019: -89.5; 2020: 575.8; 2021: 45.3; 2022: 47.1
- Credit to the economy: 2018: -4.5; 2019: 13.0; 2020: 8.6; 2021: 6.1; 2022: 10.4
- Government finances (percent of GDP)
- Total revenue: 2018: 12.1; 2019: 11.2; 2020: 10.8; 2021: 10.9; 2022: 11.5
- Total expenditure and net lending: 2018: 21.1; 2019: 21.6; 2020: 22.9; 2021: 24.0; 2022: 22.7
- Current expenditure: 2018: 9.9; 2019: 9.6; 2020: 10.3
- Capital expenditure: 2018: 12.0; 2019: 12.6; 2020: 11.7
- Basic balance (excl. grants): 2018: -2.9; 2019: -3.5; 2020: -5.1; 2021: -5.7; 2022: -4.3
- Overall balance (incl. grants): 2018: -3.0; 2019: -3.6; 2020: -5.3; 2021: -6.6; 2022: -5.4
- Gross investment: 2018: 28.5; 2019: 30.0; 2020: 31.1; 2021: 31.8; 2022: 33.7
- Non-government investment: 2018: 18.4; 2019: 19.3; 2020: 20.5; 2021: 20.8; 2022: 23.5
- Government investment: 2018: 10.1; 2019: 10.6; 2020: 10.5; 2021: 11.0; 2022: 10.2
- External sector and debt (percent of GDP)
- External current account balance (incl. grants): 2018: -12.7; 2019: -12.6; 2020: -13.5; 2021: -15.3; 2022: -16.3
- External current account balance (excl. grants): 2018: -14.6; 2019: -15.6; 2020: -17.2; 2021: -18.0
- Total public and publicly-guaranteed debt: 2018: 36.9; 2019: 39.8; 2020: 45.0; 2021: 48.8; 2022: 49.8
- Public and publicly-guaranteed external debt: 2018: 25.3; 2019: 26.5; 2020: 31.6; 2021: 32.8; 2022: 32.2
- NPV of external debt: 2018: 23.1; 2019: 24.5; 2020: 24.2; 2021: 23.4; 2022: 23.0
- Public domestic debt: 2018: 13.3; 2019: 13.4; 2020: 16.0; 2021: 17.6
- GDP at current market prices (Billions of CFA francs)
- 2018: 7,134; 2019: 7,565; 2020: 7,909; 2021: 8,559; 2022: 9,301
IMF Communications Department, Press Release No. 21/366, December 8, 2021.