Cabo Verde: Fifth Review Under the Extended Credit Facility Arrangement, Request for a Waiver of Nonobservance of Quantitative Performance Criterion, Modification of Quantitative Performance Criteria, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
IMF Staff Country Reports, February 11, 2025
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- Cabo Verde: Fifth Review Under the Extended Credit Facility Arrangement, Request for a Waiver of Nonobservance of Quantitative Performance Criterion, Modification of Quantitative Performance Criteria, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Cabo Verde
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Bibliographic details
- Published: February 11, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229001496.002
Overview
- Presents Cabo Verde’s Fifth Reviews under the Extended Credit Facility (ECF) Arrangement and Second Review under the Resilience and Sustainability Facility (RSF) Arrangement, including a Request for a Waiver of Nonobservance of Quantitative Performance Criterion (QPC) and Modification of Quantitative Performance Criteria.
- The ECF-supported program aims to:
- strengthen public finances and put debt on a downward path,
- reduce fiscal risks from public enterprises,
- modernize the monetary policy framework,
- raise growth potential.
Economic Outlook and Growth Projections
- Cabo Verde continues to grow strongly, reflecting a rebound in tourism, robust export performance, as well as private consumption growth.
- Near-term economic outlook remains favorable.
- Growth is projected to gradually converge to its potential rate of about 4.8 percent by 2029.
Program Performance and Compliance
- All ECF performance criteria were met except the gross international reserves (GIR) QPC.
- The Bank of Cabo Verde has taken corrective actions to address the missed GIR target.
- All indicative targets, except for GIR, and structural benchmarks through September 2024 were met.
Resilience and Sustainability Facility (RSF)
- The RSF supports government efforts to implement macro-critical climate reforms and catalyze private climate finance.
- RSF reform implementation status:
- One RSF reform measure was completed.
- Three RSF reform measures were delayed to the next review.
Key Subjects and Keywords
- Subject: Debt service, Debt sustainability analysis, External debt, Fiscal risks, Public debt, Public financial management (PFM)
- Keywords: BCV reserve, climate governance, Debt service, Debt sustainability analysis, Fiscal risks, Global, import growth, RSF arrangement, RSF reform, state-owned enterprise reforms stall
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