IMF Executive Board Approves US$43 Million Extended Credit Facility Arrangement for the Union of the Comoros
IMF News, June 1, 2023
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- Published: June 1, 2023
Overview and financing
- Executive Board approved SDR 32.04 million (about US$43 million) 4-year Extended Credit Facility (ECF) arrangement for the Union of the Comoros.
- Immediate disbursement allowed: SDR 3.56 million (about US$4.73 million).
- The ECF arrangement follows completion of the Staff-Monitored Program in April 2023 and is the first IMF financing engagement with Comoros since 2013.
- The ECF is expected to catalyze additional bilateral and multilateral financial support.
Program objectives and key policy commitments
- Preserve macroeconomic stability and implement authorities’ plans for:
- Fiscal consolidation.
- Financial sector stabilization.
- Governance and anti-corruption reforms.
- Specific commitments include:
- Mobilizing domestic revenue supported by reforms to strengthen tax and customs administration and streamline tax exemptions.
- Completing restructuring of the state-owned postal bank SNPSF and enhancing the Central Bank’s banking supervision and resolution capacities.
- Strengthening governance through public financial management and anti-corruption reforms, including adoption of the revised anti-corruption law.
- Program aims to reduce economic and institutional fragilities and create fiscal space for investments in human and physical capital.
- Continued support from international partners—both financing and capacity development—will be critical.
Staff and Executive Board remarks
- Statement by Ms. Antoinette Sayeh, Deputy Managing Director and Acting Chair:
- Noted multiple shocks (including a natural disaster) that have adversely affected economic growth and fiscal sustainability.
- Emphasized low fiscal revenue, insufficient public investment in human and physical capital, and vulnerability to shocks as key development challenges.
- Highlighted the ECF as the first Upper Credit Tranche-quality arrangement with the IMF in ten years.
- Stated that strong and timely donor support, complemented by IMF disbursements, is critical given sizeable financing needs.
Selected Economic and Financial Indicators, 2020–28 (as presented)
- National income and prices (Annual percentage change, unless otherwise indicated)
- Real GDP: 2020 -0.2; 2021 2.1; 2022 2.6; 2023 3.0; 2024 3.5; 2025 4.0; 2026 4.3; 2027 4.5
- GDP deflator: 2020 0.8; 2021 -0.3; 2022 5.3; 2023 1.8; 2024 2.0; 2025 1.9
- Consumer price index (annual average): 2020 0.0; 2021 12.4; 2022 10.3
- Consumer price index (end period): 2020 -4.8; 2021 7.1; 2022 20.6; 2023 0.4; 2024 2.2
- Money and credit
- Net foreign assets: 2020 30.3; 2021 11.5; 2022 -9.3; 2023 20.0; 2024 13.1; 2025 1.7
- Domestic credit: 2020 -8.7; 2021 22.1; 2022 12.7; 2023 12.2; 2024 2.3; 2025 0.2; 2026 14.0; 2027 8.1; 2028 2.5
- Credit to the private sector: 2020 -2.8; 2021 9.7; 2022 15.0; 2023 11.1; 2024 9.3; 2025 9.4
- Broad money: 2020 20.1; 2021 9.2; 2022 7.3; 2023 5.8; 2024 5.7
- Velocity (GDP/end-year broad money): 2020 3.2; 2021 2.7
- External sector (Annual percentage change / volumes)
- Exports, f.o.b.: 2020 -48.3; 2021 62.4; 2022 76.7; 2023 -20.0; 2024 8.2; 2025 8.7; 2026 9.1; 2027 13.2; 2028 8.3
- Imports, f.o.b.: 2020 -2.5; 2021 2.4; 2022 16.6; 2023 17.4; 2024 3.8; 2025 6.7; 2026 6.3
- Export volume: 2020 -36.7; 2021 75.4; 2022 38.3; 2023 -17.4; 2024 5.1; 2025 6.5; 2026 7.2; 2027 11.2
- Import volume: 2020 7.9; 2021 -5.8; 2022 -10.1; 2023 3.7; 2024 5.6; 2025 3.1; 2026 2.9
- Terms of trade: 2020 -0.1; 2021 -15.1; 2022 -4.4; 2023 2.8
- Investment and savings (In percent of GDP, unless otherwise indicated)
- Gross fixed capital formation: 2020 15.6; 2021 15.7; 2022 16.7; 2023 17.3; 2024 17.6; 2025 17.7; 2026 17.9; 2027 18.0; 2028 18.1
- Public (GFCF): 2020 5.5; 2021 5.4; 2022 5.0; 2023 6.8; 2024 5.2
- Private (GFCF): 2020 10.0; 2021 11.7; 2022 10.2; 2023 10.7; 2024 11.9; 2025 12.8; 2026 12.9
- Gross national savings: 2020 13.6; 2021 15.2; 2022 14.3; 2023 12.1; 2024 12.5; 2025 13.4; 2026 13.7; 2027 13.8
- External Savings: 2020 1.6; 2021 -0.8; 2022 1.5; 2023 1.4; 2024 12.0; 2025 15.5; 2026 15.1; 2027 10.9; 2028 11.4
- Public finances (In percent of GDP)
- Total revenue and grants: 2020 18.3; 2021 17.0; 2022 14.2; 2023 14.8; 2024 16.0; 2025 16.4; 2026 16.2
- Total revenue: 2020 9.8; 2021 9.9; 2022 11.0; 2023 11.3
- Tax Revenue: 2020 7.7; 2021 8.6; 2022 8.0; 2023 9.0; 2024 9.6
- Non-tax Revenue: 1.70
- Total grants: 4.8; 4.9
- Total expenditure and net lending: 18.8; 19.8; 18.2; 21.8; 19.4
- Current expenditure: 10.5; 10.6; 10.8
- Capital expenditure: 7.8; 7.0; 6.9
- Domestic primary balance 2: -1.4; -3.4; -1.9; -2.4; -1.8; -1.1
- Overall balance (cash basis): -3.6; -4.9; -4.6; -3.1; -1.7
- Excluding grants: -9.8; -9.6; -8.1; -12.1; -7.9; -7.0; -6.7
- Net Financing: 1.0; 3.6; 4.2
- Foreign financing: 0.1
- Domestic financing: 1.2; 1.1; -0.9; -1.2
- Of which: Net acquisition of assets: -0.4; -0.5; -0.6
- Financing gap/errors and omissions 3: 0.7; 1.3
- External sector (percent of GDP)
- Exports of goods and services: 13.3; 12.3; 12.6; 13.0
- Imports of goods and services: 28.2; 32.5; 37.3; 37.7; 36.5; 35.3; 34.9; 34.5; 34.2
- Current account balance: -5.2; -5.1; -4.5; -4.3
- Excluding official and private transfers: -22.2; -22.1; -23.7; -25.4; -23.8; -22.8; -21.3; -20.8
- Private remittances, net 4: 16.9; 16.3; 15.3
- Debt and reserves
- External debt: 25.8; 27.1; 33.6; 37.4; 39.0; 38.5; 37.9
- External public and publicly guaranteed debt: 24.7; 33.7
- External debt, in percent of exports of goods and services: 418.2; 123.8; 86.5; 82.2; 66.4; 48.0; 42.1; 37.0; 26.2
- Overall balance of payments (in millions of U.S.$): 56.9; -24.0; 51.1; 15.9; 14.6
- Official grants and loans: 8.5
- Gross international reserves (in millions of U.S. dollars, end of period): 292.2; 329.3; 281.8; 325.8; 359.3; 370.7; 382.2; 390.8; 391.6
- Gross international reserves, in months of imports of goods & services: 8.4; 7.6; 7.4
- Gross international reserves, including fiscal gap: 341.8; 403.4; 442.1; 480.4; 512.4; 535.9
- Exchange rate CF/US$ (period average): 431.1; 415.7; 466.8
- Memorandum items
- Public external debt (in Percent of GDP) 7
- Public debt (in Percent of GDP): 40.7; 43.8; 45.1; 44.4; 43.6; 43.3
- GDP (nominal, in billions of CF): 524.9; 534.3; 577.3; 620.1; 653.6; 694.0; 738.7; 786.6; 836.0
- GDP per capita (nominal, in US Dollars): 1,357; 1,395; 1,294; 1,352; 1,363; 1,390; 1,420; 1,448; 1,467
Press Release No. 23/194 — IMF Executive Board decision announced June 1, 2023.