## IMF Executive Board Completes Third Review of the Arrangement Under the Extended Credit Facility with the Islamic Republic of Mauritania

_IMF News, May 20, 2019_

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**Canonical URL:** [IMF Executive Board Completes Third Review of the Arrangement Under the Extended Credit Facility with the Islamic Republic of Mauritania](https://www.imf.org/en/news/articles/2019/05/20/pr19177-mauritania-imf-exec-board-completes-third-review-arrangement-under-extended-credit-facility)

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## Bibliographic details
- Published: May 20, 2019

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### Program performance and review outcome
- On May 20, 2019, the Executive Board completed the third review of the three-year arrangement with Mauritania under the Extended Credit Facility.
- The arrangement has total access of SDR 115.92 million (about US$ 159.8 million at current exchange rates), or 90 percent of Mauritania’s quota.
- The completion of the review allows the authorities to draw SDR 16.56 million (about US$ 22.8 million), bringing total disbursements to SDR 66.24 million (about US$ 91.3 million).
- IMF assessment: “Mauritania’s performance under the Extended Credit Facility Arrangement continues to be strong. Macroeconomic stability has been maintained, external debt-to-GDP declined, official reserves increased, and some fiscal space has been created. Structural reform implementation progressed as planned.” — Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair.

### Growth, outlook, and risks
- Economic growth:
  - Real GDP: 2018 est. 3.6 percent; 2019 proj. 6.7 percent; 2020 proj. 5.8 percent.
  - Real extractive GDP: 2018 est. -18.7 percent; 2019 proj. 20.6 percent; 2020 proj. 6.3 percent.
  - Real non-extractive GDP: 2018 est. 5.4 percent; 2019 proj. (value missing in table for 2019 row header)  (table shows non-extractive GDP series: 2015 1.4, 2016 2.0, 2017 4.5, 2018 5.4).
- Price developments:
  - GDP deflator: 2018 5.3 percent.
  - Consumer prices (period average): 2018 4.0 percent.
- Outlook drivers: improved terms of trade and the upcoming development of a large offshore gas field.
- Downside risks: global economic developments, commodity price volatility, adverse weather, and regional security concerns remain elevated.

### Policy objectives and structural reforms
- Program aims:
  - Entrench macroeconomic stability.
  - Support inclusive and job-creating growth.
  - Build international reserve buffers.
- Authorities’ stated fiscal intent:
  - Use prospective fiscal space prudently for priority social spending—education, health, and social protection—and public infrastructure.
  - Seek financing on concessional terms to improve debt sustainability.
- Structural reform priorities:
  - Strengthen tax policy and administration to ensure broad-based tax compliance.
  - Reform budget processes to improve the effectiveness of public spending.
  - Modernize the foreign exchange policy framework and increase exchange rate flexibility to address external shocks and preserve official reserves.
  - Activate new monetary policy instruments to improve liquidity management.
  - Upgrade bank regulatory standards and supervision to strengthen banking sector soundness and financial inclusion.
  - Establish a robust macro-fiscal framework to efficiently manage future windfall gas revenues.
- Governance recommendation: Step up efforts to improve the business environment, strengthen economic governance, and fight corruption.

### Fiscal, debt, and monetary key statistics (selected)
- Central government operations (in percent of non-extractive GDP):
  - Revenues and grants: 2018 33.6; 2019 30.5; 2020 31.2.
  - Non-extractive revenues: 2018 27.5; 2019 27.7.
  - Taxes: 2018 20.8; 2019 20.4; 2020 20.7.
  - Extractive revenues: 2018 2.2; 2019 2.6.
  - Grants: 2018 0.9.
  - Expenditure and net lending: 2018 30.0; 2019 30.6; 2020 30.7.
  - Current expenditure: 2018 18.1; 2019 18.0.
  - Capital expenditure: 2018 10.8; 2019 12.4; 2020 12.8.
  - Primary balance (excl. grants): 2018 4.8.
  - Overall balance (in percent of GDP): 2018 3.3.
- Public sector debt (in percent of GDP):
  - 2015 75.2; 2016 77.4; 2017 75.9; 2018 83.0; 2019 78.5; 2020 80.9.
  - Note: 1/ Including government debt to the central bank recognized in 2018. 2/ Excluding passive debt to Kuwait under negotiation.
- Money and credit (annual change in percent):
  - Broad money: 2018 11.5; 2019 11.6.
  - Credit to the private sector: 2018 19.2; 2019 13.5.
- Balance of payments:
  - Current account balance (in percent of GDP): 2018 -18.4; 2019 -15.7; 2020 -21.6.
  - Current account excl. externally financed extractive capital imports: 2018 -10.2; 2019 -12.9.
- External sector and reserves:
  - Gross official reserves (in millions of US$, eop): 2018 919.1; 2019 1,010.6; 2020 1,133.8.
  - In months of prospective non-extractive imports: 2018 5.0; 2019 5.2; 2020 5.7.
  - External public debt (in millions of US$): 2018 3,631.8; 2019 3,784.0; 2020 4,046.4.
  - External public debt (in percent of GDP): 2018 69.3; 2019 67.3; 2020 69.4.
- Memorandum items:
  - Nominal GDP (in millions of US$): 2018 5,237.1; 2019 5,621.3; 2020 5,826.9.
  - Price of iron ore (US$/Ton): 2018 70.1; 2019 76.5; 2020 70.2.

### Implementation and next steps
- Continued policy discipline and broad-based structural reforms are envisaged to support program objectives.
- Authorities to prioritize social spending and public infrastructure while seeking concessional financing to safeguard debt sustainability.
- Emphasis on modernizing macroeconomic frameworks (fiscal, monetary, foreign exchange) and strengthening financial sector regulation and supervision.

*Prepared from IMF Press Release No. 19/177 (May 20, 2019).*

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## References

- [Mitsuhiro Furusawa](http://www.imf.org/external/np/omd/bios/mf.htm)
- [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/2019/05/20/pr19177-mauritania-imf-exec-board-completes-third-review-arrangement-under-extended-credit-facility_