{ "title": "IMF Executive Board Completes the Sixth Review and Final Under the Policy Coordination Instrument, the Third and Final Reviews under the Stand-By Credit Facility and the Stand-By Arrangement, and Initiates Post Financing Assessment with Senegal", "publication": "IMF News, January 9, 2023", "sourceUrl": "https://www.imf.org/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal", "canonical": "https://www.imf.org/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal", "overlayPath": "/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal/index.md", "summary": "IMF Executive Board Completes the Sixth Review and Final Under the Policy Coordination Instrument, the Third and Final Reviews under the Stand-By Credit Facility and the Stand-By Arrangement, and Initiates Post Financing Assessment with Senegal", "authors": [ "Credit Facility" ], "publishDate": "2023-01-09", "sections": [ { "heading": "Overview", "content": "- The Executive Board completed the Sixth and Final Review under the Policy Coordination Instrument (PCI) and the Third and Final Reviews under the Stand-by Arrangement (SBA) and the Arrangement under the Standby Credit Facility (SCF).\n- The completion of the reviews enables the immediate release of about US$ 215.96 million (SDR 161.8 million, or about FCAF 133 bn) to Senegal.\n- Following these final reviews, Senegal is expected to engage in Post Financing Assessment (PFA) with the Fund." }, { "heading": "Economic developments and outlook", "content": "- Key shocks affecting the economy: weaker external demand, soaring food and energy prices, tightening financial conditions, and US dollar appreciation.\n- Near-term outcomes:\n - Growth was revised down to 4.7 percent.\n - Inflation increased and is becoming more broad-based, with acceleration in the non-food and non-energy subcomponents of the CPI.\n - Economic activity slowed in the first nine months of 2022.\n- Medium-term prospects:\n - Oil and gas production is set to start in late 2023, which could improve medium-term growth prospects provided appropriate policies are implemented.\n- Risks to the outlook are high and heavily tilted to the downside, including:\n - lower global growth;\n - tighter financial conditions;\n - inflationary pressures;\n - more intense and prolonged war in Ukraine;\n - further US dollar appreciation;\n - natural disasters related to climate change;\n - deterioration of the regional security situation." }, { "heading": "Fiscal position, debt, and policy commitments", "content": "- Fiscal stance and commitments:\n - The authorities committed to keeping the fiscal deficit at 6.2 percent of GDP in 2022, through additional revenue measures and savings to offset larger energy subsidies.\n - Authorities committed to accelerate fiscal consolidation to contain the 2023 budget deficit below 5 percent of GDP, while strengthening support to alleviate the cost-of-living crisis.\n - Over the medium term, the authorities aim to reduce the budget deficit to 3 percent of GDP by 2025.\n- Policy priorities to rebuild buffers and place public debt on a downward path:\n - Accelerated implementation of the domestic revenue mobilization strategy.\n - Gradual phasing out of energy subsidies.\n - Strengthening debt management and monitoring state-owned enterprises’ borrowing." }, { "heading": "Energy subsidies and social protection", "content": "- Observations:\n - Authorities provided extensive support to households and firms, including untargeted and costly energy subsidies.\n - Recent increases in selected electricity and fuel prices aim to reduce regressive subsidy impacts and contain fiscal costs.\n- Policy direction:\n - Authorities published a roadmap to gradually phase out energy subsidies by 2025.\n - Over the medium term, the roadmap should be steadfastly implemented while adopting measures to protect vulnerable households." }, { "heading": "Structural reforms, transparency, and financial sector integrity", "content": "- Progress and measures:\n - Significant progress in improving transparency and accountability has been achieved.\n - The audit report of the Court of Accounts on the use of the COVID-19 funds was published; authorities are considering measures to address expenditure management weaknesses identified.\n - Adoption of a new public procurement code is expected to favor more open and competitive tenders and reduce recourse to noncompetitive tenders.\n - The fiscal framework for managing hydrocarbon revenues should be operationalized expeditiously to ensure windfalls benefit Senegal’s development.\n- Financial sector and AML/CFT:\n - Deficiencies in the AML/CFT framework need to be tackled with greater urgency to minimize risks to the financial sector and thus the economy." }, { "heading": "Post Financing Assessment (PFA)", "content": "- Purpose and implication:\n - The central objective of PFA is to provide for closer monitoring of the policies of members that have substantial Fund credit outstanding following the expiration of their arrangements.\n - Under PFA, members undertake more frequent formal consultation with the Fund than is the case under surveillance, with a particular focus on macroeconomic and structural policies that have a bearing on external viability.\n\nIMF Press Release No. 23/02 — January 9, 2023. IMF Communications Department.\n\n---\n\n\n References\n\n- Kenji Okamura\n- Senegal and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal" } ], "bullets": [ "[Markdown version](/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal/index.md)", "[Structured JSON version](/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal/index.json)", "[Bundle manifest](/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal/bundle-manifest.json)", "Authors: Credit Facility", "Published: January 9, 2023", "The Executive Board completed the Sixth and Final Review under the Policy Coordination Instrument (PCI) and the Third and Final Reviews under the Stand-by Arrangement (SBA) and the Arrangement under the Standby Credit Facility (SCF).", "The completion of the reviews enables the immediate release of about US$ 215.96 million (SDR 161.8 million, or about FCAF 133 bn) to Senegal.", "Following these final reviews, Senegal is expected to engage in Post Financing Assessment (PFA) with the Fund.", "Key shocks affecting the economy: weaker external demand, soaring food and energy prices, tightening financial conditions, and US dollar appreciation.", "Near-term outcomes:", "Medium-term prospects:", "Risks to the outlook are high and heavily tilted to the downside, including:", "Fiscal stance and commitments:", "Policy priorities to rebuild buffers and place public debt on a downward path:", "Observations:", "Policy direction:", "Progress and measures:", "Financial sector and AML/CFT:", "Purpose and implication:", "[Kenji Okamura](https://www.imf.org/en/About/senior-officials/Bios/kenji-okamura)", "[Senegal and the IMF](http://www.imf.org/external/country/SEN/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)" ], "alternates": { "markdown": "/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal/index.md", "json": "/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal/index.json", "bundleManifest": "/en/news/articles/2023/01/09/pr2302-imf-exec-board-6th-rev-pci-3rd-rev-sbc-fac-sba-post-fin-assess-senegal/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T01:46:49.942Z" }