IMF Management Completes First Review of Staff-Monitored Program with Equatorial Guinea

IMF News, November 12, 2018

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On August 16, 2018, the Management of the IMF completed the first review under the Staff-Monitored Program (SMP) with Equatorial Guinea.
The authorities view the program as an instrument for bolstering capacity and building an adequate track record of performance that could serve as the basis for discussions on a potential Fund-supported program.
"Notwithstanding still difficult economic and financial conditions, program implementation for the first review has been satisfactory."
"All but one of the end-April 2018 performance measures and indicative targets were met, some by wide margins."

"A revised 2018 budget is helping to strengthen the public finances."
The program implementation created fiscal space to increase social spending.
Implementation of measures strengthened public finances and led to an increase in government deposits at BEAC and an improvement in Equatorial Guinea’s reserves position at this institution, although the latter "remains negative."

"While the growth outlook remains difficult, there are signs of a slight recovery of the non-oil sector."
The overall growth outlook remains challenging, reflecting mainly a continued decline in hydrocarbon output.
"Inflation remains subdued, driven by the economic slack and low world inflation."

"Progress has been made on the structural agenda and the authorities remain committed to its implementation, but there are delays in some areas, particularly in those related to governance and transparency."
It would be important to sustain efforts to implement measures to support economic diversification and improve governance.

Priority actions going forward include:
- Sustaining efforts to further strengthen the public finances.
- Ensuring the implementation of measures to support economic diversification.
- Improving governance and transparency.
IMF staff will remain engaged with the authorities to monitor progress and "will continue to provide technical assistance and training to support Equatorial Guinea’s capacity-building efforts."

"An SMP is an agreement between country authorities and Fund staff to monitor the implementation of the authorities’ economic program. SMPs do not entail endorsement by the IMF Executive Board. The SMP is supported by quantitative performance measures, indicative targets and structural measures."

IMF Management Completes First Review of Staff-Monitored Program with Equatorial Guinea — Press Release No. 18/418, November 12, 2018