{
  "title": "IMF Executive Board Concludes Third Review Under the Extended Credit Facility for São Tomé and Príncipe",
  "publication": "IMF News, August 27, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/08/27/pr21251-sao-tome-and-principe-imf-executive-board-concludes-third-review-under-the-ecf",
  "canonical": "https://www.imf.org/en/news/articles/2021/08/27/pr21251-sao-tome-and-principe-imf-executive-board-concludes-third-review-under-the-ecf",
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  "summary": "The Executive Board completed the third review of the Extended Credit Facility (ECF) arrangement for São Tomé and Príncipe on August 27, 2021.",
  "publishDate": "2021-08-27",
  "sections": [
    {
      "heading": "Immediate disbursement and program status",
      "content": "- The Executive Board completed the third review of the Extended Credit Facility (ECF) arrangement for São Tomé and Príncipe on August 27, 2021.\n- The Board’s decision enables the immediate disbursement of SDR 1.90 million (about US$2.70 million).\n- Total disbursements under the arrangement to date: SDR 9.09 million (about US$12.91 million).\n- Original 40-month ECF arrangement (approved October 2, 2019): SDR 13.32 million (about US$18.15 million or around 90 percent of the country’s quota).\n- Previous disbursements and approvals:\n  - Second review (February 2021): disbursement of about US$2.73 million.\n  - First review (July 2020): disbursement of about US$2.67 million and an augmentation of US$2.08 million.\n  - April 2020: emergency financing of US$12 million under the Rapid Credit Facility (RCF) and IMF debt service relief under the Catastrophe Containment and Relief Trust (CCRT)."
    },
    {
      "heading": "Executive Board assessment — key messages and policy recommendations",
      "content": "- Pandemic response and outlook:\n  - Exceptional international support and the authorities’ swift actions have helped address health and socio-economic impacts of the COVID-19 pandemic, but uncertainties remain high.\n  - Adequate vaccination is critical to ensure more resilient, sustained, and inclusive green growth.\n- Fiscal policy and debt sustainability:\n  - Addressing immediate social and economic needs while implementing gradual fiscal consolidation is key to supporting recovery and preserving debt sustainability.\n  - Priority fiscal measures highlighted:\n    - Introducing the VAT in 2021.\n    - Reining in spending dynamics, particularly on personnel.\n    - Continued reliance on grants and highly concessional loans.\n- Transparency and governance:\n  - Authorities’ efforts to foster increased transparency are welcome.\n  - Review procurement legislation to enable the collection and publication of beneficial ownership information.\n  - Complete audit reports of COVID-19 related spending.\n- Monetary and financial sector policy:\n  - Monetary policy should support the exchange rate peg and the recovery.\n  - Continue active liquidity management.\n  - Strengthen capacity to manage financial sector risks and vulnerabilities.\n  - Establish a new legal framework for the central bank and financial sector to enable modernization.\n- Structural reforms and sectoral priorities:\n  - Accelerate reforms in the energy sector to provide lower-cost, reliable electricity, support development and growth potential, and reduce pressures on public debt and reserves.\n  - Press ahead with broad-based structural reforms to facilitate private investment, develop the tourism sector, and promote more resilient and inclusive growth."
    },
    {
      "heading": "Selected economic indicators and projections (highlights from Table 1)",
      "content": "- GDP at constant prices (annual change):\n  - 2017: 3,9\n  - 2018: 3,0\n  - 2019: 2,2\n  - 2020: -6,5\n  - 2021 (Proj.): 2,1\n  - 2022 (Proj.): 2,9\n  - 2026 (Proj.): 4,0\n- GDP deflator:\n  - 2017: 2,0\n  - 2019: 7,0\n  - 2020: 5,6\n  - 2021 (Proj.): 2,7\n- Consumer prices (Period Average):\n  - 2017: 5,7\n  - 2019: 9,9\n  - 2020: 9,8\n  - 2021 (Proj.): 5,4\n  - 2024 (Proj.): 4,4\n- Exports of goods and nonfactor services (annual change):\n  - 2017: -10,8\n  - 2018: 13,9\n  - 2019: -1,9\n  - 2020: -47,3\n  - 2021 (Proj.): -46,3\n  - 2022 (Proj.): 61,0\n  - 2024 (Proj.): 48,0\n- Imports of goods and nonfactor services (annual change):\n  - 2017: 5,5\n  - 2019: -5,3\n  - 2020: -7,2\n  - 2021 (Proj.): -10,4\n- Money and credit:\n  - Base money (annual change):\n    - 2017: -9,6\n    - 2018: 0,8\n    - 2020: 22,6\n    - 2021 (Proj.): 31,0\n  - Broad money (M3) (annual change):\n    - 2017: -0,4\n    - 2018: 14,3\n    - 2019: -2,2\n    - 2021 (Proj.): 10,9\n- Government finance (percent of GDP):\n  - Total revenue, grants, and oil signature bonuses:\n    - 2017: 24,9\n    - 2019: 28,2\n    - 2020: 25,3\n    - 2021 (Proj.): 25,7\n    - 2026 (Proj.): 23,5\n  - Tax revenue (percent of GDP):\n    - 2017: 12,7\n    - 2020: 14,5\n    - 2021 (Proj.): 13,1\n    - 2026 (Proj.): 15,6\n  - Grants (percent of GDP):\n    - 2017: 10,5\n    - 2019: 11,2\n    - 2020: 9,7\n    - 2021 (Proj.): 3,8\n  - Domestic primary balance 2 (percent of GDP):\n    - 2017: -2,4\n    - 2019: -1,8\n    - 2020: -3,2\n    - 2021 (Proj.): -3,9\n    - 2024 (Proj.): -0,2\n    - 2026 (Proj.): 0,6\n  - Net domestic borrowing (percent of GDP):\n    - 2017: 1,8\n    - 2018: 3,4\n    - 2019: -1,5\n    - 2021 (Proj.): -0,1\n- Public debt (percent of GDP):\n  - 2017: 81,1\n  - 2018: 93,2\n  - 2019: 99,9\n  - 2020: 103,0\n  - 2021 (Proj.): 87,4\n  - 2026 (Proj.): 71,2\n  - Of which: EMAE's debt to ENCO:\n    - 2017: 23,3\n    - 2019: 31,5\n    - 2020: 32,9\n    - 2026 (Proj.): 26,5\n- External sector:\n  - Current account balance (percent of GDP) including official transfers:\n    - 2017: -13,2\n    - 2019: -12,1\n    - 2020: -17,4\n    - 2021 (Proj.): -14,1\n    - 2024 (Proj.): -6,3\n    - 2026 (Proj.): -5,7\n  - Current account balance excluding official transfers:\n    - 2017: -24,3\n    - 2019: -18,5\n    - 2020: -28,6\n    - 2021 (Proj.): -23,9\n    - 2026 (Proj.): -10,7\n  - PV of external debt (percent of GDP):\n    - 2017: 26,6\n    - 2018: 32,2\n    - 2019: 25,4\n    - 2020: 30,0\n    - 2021 (Proj.): 21,7\n  - External debt service (percent of exports):\n    - 2017: 11,6\n    - 2018: 6,8\n    - 2019: 8,7\n  - Exports of goods and non-factor services (US$ millions):\n    - 2017: 86,1\n    - 2018: 98,0\n    - 2019: 96,2\n    - 2020: 50,7\n    - 2021 (Proj.): 51,7\n    - 2026 (Proj.): 140,5\n  - Gross international reserves (Millions of U.S. dollars):\n    - 2017: 51,4\n    - 2018: 35,1\n    - 2019: 40,4\n    - 2020: 54,7\n    - 2021 (Proj.): 67,6\n    - 2026 (Proj.): 76,5\n  - Months of imports of goods and services (2017): 3,6\n  - Months of imports of goods and nonfactor services (2017): 4,2; (2019): 5,1; (2020): 6,0\n- National Oil Account (US$ millions):\n  - 2017: 11,3\n  - 2018: 19,5\n  - 2019: 18,8\n  - 2020: 16,2\n  - 2021 (Proj.): 16,6\n  - 2026 (Proj.): 10,2\n- Memorandum items:\n  - Gross Domestic Product (Millions of new dobra):\n    - 2017: 8.154\n    - 2018: 8.619\n    - 2019: 9.424\n    - 2020: 8.976\n    - 2021 (Proj.): 10.247\n    - 2026 (Proj.): 14.693\n  - GDP (US$ millions):\n    - 2017: 375,8\n    - 2019: 430,7\n    - 2020: 418,1\n    - 2021 (Proj.): 477,3\n    - 2026 (Proj.): 771,6\n  - Per capita (in U.S. dollars):\n    - 2017: 1.842\n    - 2019: 2.022\n    - 2020: 1.918\n    - 2021 (Proj.): 2.190\n    - 2026 (Proj.): 3.002\n\nSources: São Tomé and Príncipe authorities' data and IMF staff estimates and projections.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- PRESS CENTER\n- Press Release No. 19/363\n- Press Release No. 20/272\n- Press Release No. 20/179\n- http://www.IMF.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/08/27/pr21251-sao-tome-and-principe-imf-executive-board-concludes-third-review-under-the-ecf"
    }
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    "Published: August 27, 2021",
    "The Executive Board completed the third review of the Extended Credit Facility (ECF) arrangement for São Tomé and Príncipe on August 27, 2021.",
    "The Board’s decision enables the immediate disbursement of SDR 1.90 million (about US$2.70 million).",
    "Total disbursements under the arrangement to date: SDR 9.09 million (about US$12.91 million).",
    "Original 40-month ECF arrangement (approved October 2, 2019): SDR 13.32 million (about US$18.15 million or around 90 percent of the country’s quota).",
    "Previous disbursements and approvals:",
    "Pandemic response and outlook:",
    "Fiscal policy and debt sustainability:",
    "Transparency and governance:",
    "Monetary and financial sector policy:",
    "Structural reforms and sectoral priorities:",
    "GDP at constant prices (annual change):",
    "GDP deflator:",
    "Consumer prices (Period Average):",
    "Exports of goods and nonfactor services (annual change):",
    "Imports of goods and nonfactor services (annual change):",
    "Money and credit:",
    "Government finance (percent of GDP):",
    "Public debt (percent of GDP):",
    "External sector:",
    "National Oil Account (US$ millions):",
    "Memorandum items:",
    "[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/)",
    "[Press Release No. 19/363](https://www.imf.org/en/News/Articles/2019/10/02/pr19363-sao-tome-and-principe-imf-executive-board-approves-new-ecf-arrangement)",
    "[Press Release No. 20/272](https://www.imf.org/en/News/Articles/2020/07/27/pr20272-sao-tome-and-principe-imf-executive-board-completes-the-first-review-ecf-arrangement)",
    "[Press Release No. 20/179](https://www.imf.org/en/News/Articles/2020/04/21/imf-executive-board-approves-us-12m-disbursement-to-address-the-covid19-pandemic)",
    "[http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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