{ "title": "IMF Management Completes the Second Review of the Staff-Monitored Program with the Union of the Comoros", "publication": "IMF News, April 20, 2023", "sourceUrl": "https://www.imf.org/en/news/articles/2023/04/20/pr23125-comoros-imf-management-completes-the-second-review-of-the-staff-monitored-program", "canonical": "https://www.imf.org/en/news/articles/2023/04/20/pr23125-comoros-imf-management-completes-the-second-review-of-the-staff-monitored-program", "overlayPath": "/en/news/articles/2023/04/20/pr23125-comoros-imf-management-completes-the-second-review-of-the-staff-monitored-program/index.md", "summary": "The COVID-19 pandemic and the war in Ukraine have severely affected Comoros, exacerbating already weak macroeconomic conditions. While benefiting from substantial aid from the diaspora and development partners during the pandemic, Comoros’ economic activity stagnated in 2020-2021.", "publishDate": "2023-04-20", "sections": [ { "heading": "Macroeconomic context and outlook", "content": "- The COVID-19 pandemic and the war in Ukraine have severely affected Comoros, exacerbating already weak macroeconomic conditions.\n- Comoros’ economic activity stagnated in 2020-2021 despite substantial aid from the diaspora and development partners during the pandemic.\n- The expected recovery in 2022 was interrupted by Russia’s war in Ukraine and its spillovers on global commodity prices, with inflation reaching record double-digit levels in 2022 and a considerably worsened fiscal outlook.\n- Effects of the shocks are expected to recede in 2023, with growth expected at 3 percent, although considerable uncertainty remains in the global outlook." }, { "heading": "Staff-Monitored Program (SMP) implementation and findings", "content": "- Management of the IMF approved the second and final review of Comoros’ SMP.\n- The SMP was approved on July 21, 2021.\n- Implementation of the SMP (covering 2021-2022) was broadly satisfactory, with most quantitative targets and structural benchmarks met on time.\n- Despite challenging circumstances, the authorities met six of the seven end-December 2021 quantitative targets.\n- Cash transfers to the poor were delayed due to COVID-19-related logistical issues.\n- All three end-December 2021 structural benchmarks were met.\n- One of the three end-February 2022 structural benchmarks was met on time.\n- The benchmarks on amendments to the 2008 anti-corruption law and the restructuring of the postal bank SNPSF (Société Nationale des Postes et Services Financiers) were not completed as scheduled, partly reflecting reform complexity and capacity constraints.\n- The draft anti-corruption law has since been aligned with requirements under the SMP, and the authorities are making progress on the restructuring of SNPSF." }, { "heading": "Reforms and institutional actions under the SMP", "content": "- Raised the number of active taxpayers.\n- Created a framework for reporting procurement information.\n- Adopted an action plan for broadening the Treasury Single Account (TSA).\n- Commissioned an audit of domestic arrears." }, { "heading": "Key policy priorities and recommendations", "content": "- Raise fiscal revenue to support investment in human and physical capital.\n- Stabilize the financial sector to improve credit allocation and minimize fiscal risks.\n- Strengthen governance to reduce corruption vulnerabilities.\n- Given high risk of debt distress, mobilize grants and external concessional loans for development financing to contain debt sustainability risks." }, { "heading": "Outcomes and next steps", "content": "- Completion of the SMP helped the authorities establish a track record of policy implementation.\n- The SMP completion paved the way towards a discussion on a financing arrangement under the Extended Credit Facility (ECF).\n\nPress Release No. 23/125 — April 20, 2023\n\n---\n\n\n References\n\n- Union of the Comoros and the IMF\n- Press Releases\n- PRESS CENTER\n- Extended Credit Facility\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/04/20/pr23125-comoros-imf-management-completes-the-second-review-of-the-staff-monitored-program" } ], "bullets": [ "[Markdown version](/en/news/articles/2023/04/20/pr23125-comoros-imf-management-completes-the-second-review-of-the-staff-monitored-program/index.md)", "[Structured JSON version](/en/news/articles/2023/04/20/pr23125-comoros-imf-management-completes-the-second-review-of-the-staff-monitored-program/index.json)", "[Bundle manifest](/en/news/articles/2023/04/20/pr23125-comoros-imf-management-completes-the-second-review-of-the-staff-monitored-program/bundle-manifest.json)", "Published: April 20, 2023", "The COVID-19 pandemic and the war in Ukraine have severely affected Comoros, exacerbating already weak macroeconomic conditions.", "Comoros’ economic activity stagnated in 2020-2021 despite substantial aid from the diaspora and development partners during the pandemic.", "The expected recovery in 2022 was interrupted by Russia’s war in Ukraine and its spillovers on global commodity prices, with inflation reaching record double-digit levels in 2022 and a considerably worsened fiscal outlook.", "Effects of the shocks are expected to recede in 2023, with growth expected at 3 percent, although considerable uncertainty remains in the global outlook.", "Management of the IMF approved the second and final review of Comoros’ SMP.", "The SMP was approved on July 21, 2021.", "Implementation of the SMP (covering 2021-2022) was broadly satisfactory, with most quantitative targets and structural benchmarks met on time.", "Despite challenging circumstances, the authorities met six of the seven end-December 2021 quantitative targets.", "Cash transfers to the poor were delayed due to COVID-19-related logistical issues.", "All three end-December 2021 structural benchmarks were met.", "One of the three end-February 2022 structural benchmarks was met on time.", "The benchmarks on amendments to the 2008 anti-corruption law and the restructuring of the postal bank SNPSF (Société Nationale des Postes et Services Financiers) were not completed as scheduled, partly reflecting reform complexity and capacity constraints.", "The draft anti-corruption law has since been aligned with requirements under the SMP, and the authorities are making progress on the restructuring of SNPSF.", "Raised the number of active taxpayers.", "Created a framework for reporting procurement information.", "Adopted an action plan for broadening the Treasury Single Account (TSA).", "Commissioned an audit of domestic arrears.", "Raise fiscal revenue to support investment in human and physical capital.", "Stabilize the financial sector to improve credit allocation and minimize fiscal risks.", "Strengthen governance to reduce corruption vulnerabilities.", "Given high risk of debt distress, mobilize grants and external concessional loans for development financing to contain debt sustainability risks.", "Completion of the SMP helped the authorities establish a track record of policy implementation.", "The SMP completion paved the way towards a discussion on a financing arrangement under the Extended Credit Facility (ECF).", "[Union of the Comoros and the IMF](http://www.imf.org/external/country/COM/index.htm)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": 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