Press Release: Director of the IMF’s African Department Concludes Visit to São Tomé and Príncipe
IMF News, February 9, 2016
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- Press Release: Director of the IMF’s African Department Concludes Visit to São Tomé and Príncipe
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Bibliographic details
- Published: February 9, 2016
Mission overview and context
- Mission dates: February 7–9, 2016.
- Press Release No.: 16/49.
- Note: End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
- IMF Communications Department contact: Media Relations; E-mail: media@imf.org; Phone: 202-623-7100.
Main findings and country outlook
- IMF projection for full-year GDP growth: 5 percent, attributed to:
- higher public investments,
- a recovery in cocoa production,
- an increase in foreign investment in tourism.
- Inflation outlook: will remain at around 4 percent, its lowest level in the last two decades.
- Recent reforms implemented:
- National Assembly passed the new banking resolution law.
- Government has begun clearing domestic arrears to the utility company.
Policy priorities and recommendations
- Continue pursuing major reforms to:
- improve tax collection,
- strengthen the financial system.
- Maintain a prudent fiscal stance to ensure public debt remains manageable.
- Clear large domestic arrears as part of restoring fiscal stability and reducing balance-of-payments vulnerabilities.
IMF financial support and program framework
- In July 2015, the IMF approved a new Extended Credit Facility (ECF) program for São Tomé and Príncipe, amounting to US$6.2 million.
- Purpose of ECF arrangement:
- underpins the government’s economic reform program,
- aims to strengthen public finances,
- reduce balance-of-payments vulnerabilities,
- clear large domestic arrears,
- lay the foundation for stronger, more inclusive growth,
- play a catalytic role for bilateral and multilateral assistance.
Engagement and acknowledgements
- Ms. Antoinette Sayeh, Director of the African Department, met with:
- Prime Minister Patrice Trovoada,
- President of the National Assembly José da Graça Diogo,
- Minister of Finance and Public Administration Americo d’Oliveira Ramos,
- Central Bank Governor Maria do Carmo Trovoada Silveira,
- other senior government officials, members of the national parliament, donors, and representatives of the private sector and civil society.
- Ms. Sayeh’s concluding statement emphasized encouragement about economic prospects, the need for continued reforms, and gratitude for hospitality and quality of discussions.
Source: Press Release No. 16/49, February 9, 2016, IMF Communications Department.