## IMF Management Approves a Staff-Monitored Program with The Gambia

_IMF News, May 7, 2019_

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## Bibliographic details
- Published: May 7, 2019

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### Key facts and timeline
- Management approved a Staff-Monitored Program (SMP) with The Gambia on April 24, 2019.
- The SMP covers the period from January to December 2019.
- The 2019 SMP builds on the previous SMP that covered April 2017 to September 2018.
- SMPs are informal and flexible instruments for dialogue between the Fund staff and a member country; SMPs are not accompanied by financial assistance nor endorsed by the IMF Executive Board.

### Economic context and recent performance
- Growth exceeded 6½ percent in 2018.
- Inflation eased to 6½ percent at end‑2018.
- Gross official reserves more than doubled, reaching 2.7 months of prospective imports.
- Debt service absorbs more than half of domestic revenue.
- The Gambia is assessed to be in external debt distress.

### Objectives and policy focus of the 2019 SMP
- Main objectives:
  - Consolidate gains from the previous SMP.
  - Help anchor debt sustainability.
- Policy and reform priorities:
  - Enhance domestic revenue mobilization.
  - Strengthen public financial management.
  - Improve SOE governance and strengthen monitoring of fiscal risks stemming from SOEs.
  - Tighten external debt contracting and pursue mainly grant financing.
  - Develop a Medium-Term Debt Strategy (MTDS) and strengthen debt management.
  - Step up structural reforms to stimulate private investment, sustain growth, and make growth more inclusive.
  - Maintain monetary policy focus on controlling inflation and ensuring financial stability.

### Debt sustainability and external support
- Restoring debt sustainability is identified as a primary concern.
- Restoring debt sustainability will require:
  - A combination of debt relief,
  - Prudent fiscal policy supported by reforms of state-owned enterprises (SOEs),
  - Predominantly grant financing for The Gambia’s development program.
- The authorities are continuing discussions with their external creditors to seek debt relief, which is also needed to catalyze additional donor support.

### Expected outcomes and prospects
- Satisfactory performance under the SMP is expected to pave the way to a possible Extended Credit Facility (ECF) arrangement with the IMF, once debt sustainability is restored.

*Press Release No. 19/150 — IMF Communications Department, May 7, 2019.*

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## References

- [The Gambia and the IMF](http://www.imf.org/external/country/GMB/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [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/2019/05/07/pr19150-the-gambia-imf-management-approves-a-staff-monitored-program-with-the-gambia_