Democratic Republic of São Tomé And Príncipe: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of São Tomé And Príncipe

IMF Staff Country Reports, April 29, 2020

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Canonical URL: Democratic Republic of São Tomé And Príncipe: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of São Tomé And Príncipe

Paper presents São Tomé and Príncipe’s Request for Disbursement Under the Rapid Credit Facility (RCF).
Purpose: support the authorities’ plan to address major challenges posed by the coronavirus disease 2019 pandemic.

Increase well-targeted health and social spending to assist the most vulnerable.
Support the unemployed.
Incentivize private businesses to retain workers.
Enhance fiscal transparency and good governance.
Prudent loan restructuring while maintaining prudential standards to alleviate liquidity pressures and safeguard financial stability.
Reinforce public financial management to ensure the disbursement is used appropriately.
Take steps to speed up the recovery next year.

IMF staff assesses that the eligibility requirements for the RCF are met and supports the authorities’ request.
Financing rationale: would help prevent a much more severe and prolonged contraction, with a substantial social impact.
Assessment of debt and repayment capacity:
- The country is in debt distress due to long-standing external arrears.
- The debt level is deemed sustainable.
- There is adequate capacity to repay the IMF.

Immediate measures to protect against the virus.
Assistance to the most vulnerable.
Countercyclical measures during the crisis.
Emphasis on ensuring public funds are spent appropriately to cushion the economic impact.

Executive Summary
- Executive Summary (Markdown version)
- Executive Summary (PDF)