## IMF Executive Board Completes Second Review of Extended Credit Facility Arrangement for Niger and Approves US$20 Million Disbursement

_IMF News, June 1, 2018_

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## Bibliographic details
- Published: June 1, 2018

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### Review outcome and disbursement
- The Executive Board completed the second review of Niger’s economic and financial program supported under the Extended Credit Facility (ECF) Arrangement.
- The completion of the second review enables the disbursement of SDR 14.1 million (about US$20 million).
- Total disbursements under the arrangement to date: SDR 42.3 million (about US$60 million).
- Original ECF arrangement (approved January 23, 2017): SDR 98.7 million (about US$134.04 million, or 75 percent of Niger’s quota).

### Program objectives and framework
- The ECF-supported program aims to:
  - Enhance macroeconomic stability.
  - Foster high and equitable growth.
  - Boost incomes and create jobs.
  - Strengthen foundations for sustainable development.
- The authorities’ Social and Economic Development Plan (PDES) for 2017-21 serves as Niger’s Economic Development Document (EDD), describing macroeconomic, structural, and social policies in support of growth and poverty reduction, and associated external financing needs and major sources of financing.

### Program performance and challenges (statements by Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair)
- Overall assessment:
  - “Program performance in 2017 was satisfactory, despite an underperformance of fiscal revenue mobilization.”
  - “All performance criteria were met. All indicative targets were observed, except for the one on fiscal revenues, which fell well short of what was programmed for 2017.”
  - “Implementation of the structural reform agenda is progressing, but slower than envisaged.”
- Near-term macroeconomic outlook and fiscal stance:
  - “The 2018 program is set in a realistic macroeconomic framework, with economic growth gradually picking up over the next few years thanks to economic reforms and significant donor support.”
  - “Currently elevated inflation should recede quickly and fiscal consolidation is set to bring the deficit below the WAEMU threshold by 2021.”
  - “The current account deficit will likely remain large but is fully financed by external support.”
- Policy priorities and concerns:
  - “Going forward, it will be important to step up revenue mobilization.”
  - “Strong revenue collection in 2018 so far is encouraging, as are the budget measures adopted this year.”
  - Need for additional short-term revenue-boosting steps and systematic efforts to build up administration capacity.
  - Concern that “the accumulation of new domestic payment arrears during the first quarter should be addressed as soon as possible.”
  - “Reforms to strengthen the private sector and to address demographic pressures and gender inequity remain essential for medium-term development prospects.”
  - Support for measures to improve the business environment, with program emphasis on steps to improve access to credit.
  - “Determined implementation is the key to making Niger’s commendable strengthening of its governance framework a tangible success.”
  - On demographics: “Despite recent efforts, a broader and faster push is called for if decisive inroads are to be made.”
  - Welcome for submission of the government’s new Economic Development Document that frames the ECF-supported program in a broader and longer-term context; “The revised EDD ensures the national development strategy, the PDES, and the authorities’ overall reform plan are aligned with the stability and development objectives of the ECF-supported program.”

### Selected economic indicators, 2016-18 (reported values)
- Population (millions): 18.8
- Per capita GDP: ($) 438.4
- Quota (current, millions SDR, % total): 131.6 (0.03%)
- Literacy/poverty rate: 26.6/45.7
- Main products and exports: Uranium, livestock, petroleum products
- Key export markets: France, Nigeria

- Output
  - Real GDP growth (%): 2016: 4.9, 2017: 5.2, 2018 (Est.): 3.9

- Prices
  - Inflation - average (in %): 2016: 0.2, 2017: 2.4, 2018 (Est.): 3.9

- General government finances
  - Revenue and Grants (% GDP): 2016: 20.5, 2017: 21.4, 2018 (Proj.): 22.7
  - Expenditure (% GDP): 2016: 26.6, 2017: 26.5, 2018 (Proj.): 28.6
  - Fiscal balance (% GDP): 2016: -6.1, 2017: -5.0, 2018 (Proj.): -5.9
  - Basic balance (% GDP)1: 2016: -4.2, 2017: -4.9, 2018 (Proj.): -4.0
  - Public debt (% GDP): 2016: 45.1, 2017: 46.1, 2018 (Proj.): 46.2

- Money and Credit
  - Broad money (% change): 2016: 8.7, 2017: 6.1, 2018 (Proj.): 9.5
  - Credit to private sector (% change): 2016: 12.7, 2017: 2.1, 2018 (Proj.): 7.8

- Balance of payments
  - Current account (% GDP): 2016: -15.7, 2017: -13.8, 2018 (Proj.): -16.7
  - FDI (% GDP): 2016: 3.5, 2017: 3.7, 2018 (Proj.): 5.6
  - Reserves (in months of imports of goods and services): 2016: 4.7, 2017: 4.4
  - External debt (% GDP): 2016: 33.0, 2017: 30.1

- Exchange rate
  - REER (% change): 2016: 0.04, 2017: 1.53

1/ Revenue minus expenditure net of externally-financed capital expenditure.

*IMF Communications Department, Press Release No. 18/211, June 1, 2018.*

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## References

- [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)
- [The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/06/01/pr18211-niger-imf-executive-board-completes-second-review-of-ecf_