The Executive Board of the International Monetary Fund (IMF) today approved
the disbursement of SDR83.66 million (about US$114.49 million) to be drawn
under the Rapid Credit Facility (RCF). The RCF funds will help address
Niger’s urgent balance of payments need by filling important financing gaps
in Niger’s fiscal and external accounts and should also help to catalyze
additional donor support. The IMF continues to monitor Niger’s situation
closely and stands ready to provide policy advice and further support as
needed. The Executive Board also approved a rephasing of disbursements
under the Extended Credit Facility (ECF) that has been supporting Niger’s
economic reform program since January 2017, to allow more time for the
completion of the next program review while maximizing financial support
under the RCF.
Following the Executive Board’s discussion of Niger, Mr. Geoffrey Okamoto,
First Deputy Managing Director and Chair, issued the following statement:
“The COVID-19 pandemic is having a pronounced negative economic impact on
Niger and downside risks are significant. The economic downturn, fiscal
pressures, and tightening financial conditions are giving rise to large
financing gaps in Niger’s public finances and balance of payments this
year.
“The authorities have moved quickly to formulate and implement a
three-pronged plan with measures to contain the pandemic and alleviate its
social and economic fallout. The IMF’s financial assistance under the RCF
covers an important part of the financing gap, thus supporting
implementation of the anti-crisis plan. However, timely additional support
from the international community is indispensable.
“A substantial widening of this year’s budget deficit is appropriate,
reflecting unavoidable revenue shortfalls and pressing spending needs for
health care, social protection, and support for hard-hit businesses. The
Ministry of Finance is comprehensively overseeing crisis measures, which
should be as well-targeted and carefully assessed as possible. Transparency
and good governance are important.
“The government remains committed to its economic reform program supported
by an ongoing ECF arrangement with the IMF. It is centered on mobilizing
domestic revenues, improving public spending efficiency, and strengthening
the private sector while preserving macroeconomic stability and sustainable
public finances.’’
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Niger: Selected Economic and Financial Indicators,
2018-22
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2018
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2019
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2020
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2021
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2022
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(Annual percentage change)
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National income and prices
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GDP at constant prices
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7.0
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5.8
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1.0
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8.1
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13.2
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Export volume
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-5.2
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6.0
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0.5
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15.2
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66.8
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Import volume
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8.7
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11.8
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8.1
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19.5
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-4.7
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CPI (annual average)
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2.8
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-2.5
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4.4
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1.7
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2.0
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CPI (end-of-period)
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1.6
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-2.3
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2.7
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2.0
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2.0
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Money and credit
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Broad money
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-2.1
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15.0
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-0.7
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13.1
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14.6
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Domestic credit
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11.4
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-12.2
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3.9
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14.3
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12.9
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Credit to the government (net)
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127.8
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-89.5
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-46.7
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1.1
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50.7
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Credit to the economy
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-4.5
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13.0
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5.4
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14.5
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12.4
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(Percent of GDP)
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Government finances
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Total revenue
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12.1
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11.2
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10.2
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12.2
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13.2
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Total expenditure and net lending
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21.1
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21.5
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22.6
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21.7
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20.6
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Current expenditure
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9.9
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9.6
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10.8
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10.2
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10.1
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Capital expenditure
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11.2
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12.0
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11.8
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11.6
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10.5
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Basic balance (excl. grants)
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-2.9
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-3.5
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-5.0
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-2.1
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-1.1
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Overall balance (incl. grants)
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-3.0
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-3.6
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-5.0
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-3.3
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-2.6
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Gross investment
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29.0
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30.2
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31.5
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31.3
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24.6
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Non-government investment
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18.7
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19.2
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20.6
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20.8
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15.0
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Government investment
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10.3
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11.0
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10.8
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10.6
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9.7
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External current account balance (incl. grants)
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-12.7
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-13.2
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-15.1
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-16.6
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-9.7
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External current account balance (excl. grants)
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-14.7
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-16.0
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-17.4
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-18.4
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-11.0
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Total public and publicly-guaranteed debt
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39.0
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42.0
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45.4
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43.7
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40.1
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Public and publicly-guaranteed external debt
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25.4
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26.5
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30.3
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29.7
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27.3
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NPV of external debt
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24.5
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18.5
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21.8
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21.1
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19.3
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Public domestic debt
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13.6
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15.5
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15.1
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14.0
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12.7
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(Billions of CFA francs)
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GDP at current market prices
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7,121
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7,574
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7,830
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8,633
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9,971
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Sources: Nigerien authorities; and IMF staff estimates and
projections.
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For information on the emergency financing requests approved by the IMF
Executive Board, please see a link to the IMF Lending Tracker:
https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker
For upcoming discussions on the emergency financing requests, please see a
link to the calendar of the IMF Executive Board meetings:
https://www.imf.org/external/NP/SEC/bc/eng/index.aspx
