{
  "title": "IMF Executive Board Approves US$1.51 billion Under the Extended Fund Facility and Extended Credit Facility, and US$324 million Under the Resilience and Sustainability Facility for Senegal",
  "publication": "IMF News, June 26, 2023",
  "sourceUrl": "https://www.imf.org/en/news/articles/2023/06/26/pr23239-senegal-imf-executive-board-approves-usd-billion-under-eff-and-ecf-and-usd-million-under-rsf",
  "canonical": "https://www.imf.org/en/news/articles/2023/06/26/pr23239-senegal-imf-executive-board-approves-usd-billion-under-eff-and-ecf-and-usd-million-under-rsf",
  "overlayPath": "/en/news/articles/2023/06/26/pr23239-senegal-imf-executive-board-approves-usd-billion-under-eff-and-ecf-and-usd-million-under-rsf/index.md",
  "summary": "The Executive Board of the International Monetary Fund (IMF) today approved a 36-month Extended Credit Facility (ECF) and Extended Fund Facility (EFF) of SDR 1.132 billion (about US$1.51 billion) with Senegal.",
  "publishDate": "2023-06-26",
  "sections": [
    {
      "heading": "Program approval and financing",
      "content": "- Executive Board approved a 36-month Extended Credit Facility (ECF) and Extended Fund Facility (EFF) of SDR 1.132 billion (about US$1.51 billion) with Senegal.\n- Executive Board also approved an Arrangement Under the Resilience and Sustainability Facility (RSF) of about SDR 242.7 million (about US$324 million).\n- The Executive Board’s decision enables an immediate disbursement equivalent to SDR 161.8 million (about US$216 million) under the EFF/ECF."
    },
    {
      "heading": "Program objectives and policy priorities",
      "content": "- EFF/ECF-supported program objectives:\n  - Meet Senegal’s protracted balance of payment needs.\n  - Address macroeconomic imbalances.\n  - Reduce debt vulnerabilities through growth-friendly fiscal consolidation.\n  - Strengthen governance.\n  - Deliver more inclusive and job-rich growth.\n- RSF objectives:\n  - Tackle longer-term structural challenges related to climate change.\n  - Support climate change mitigation objectives and accelerate climate change adaptation.\n  - Mainstream climate change considerations into the budget process."
    },
    {
      "heading": "Economic context and recent performance",
      "content": "- Key shocks and challenges affecting Senegal:\n  - Rising food and energy prices, tightening financial conditions, weaker external demand, and US dollar appreciation.\n  - Heightened regional insecurity and growing socio-political tensions ahead of the presidential elections.\n- 2022 outcomes highlighted in the press release:\n  - Growth decelerated to 4.0 percent.\n  - Inflation accelerated to 9.7 percent.\n  - Fiscal and current account deficits widened.\n- Medium-term prospects:\n  - Oil and gas production set to start in early 2024, supporting more favorable medium-term growth prospects.\n  - Risks remain high and heavily tilted to the downside, including lower global growth, tighter financial conditions, prolonged war in Ukraine, further US dollar appreciation, climate-related disasters, deterioration of regional security, and socio-political tensions."
    },
    {
      "heading": "Fiscal strategy and debt management",
      "content": "- Authorities’ fiscal intentions:\n  - Embark on growth-friendly fiscal consolidation to contain the budget deficit at 3 percent of GDP by 2025.\n  - Undertake additional revenue measures and improve spending efficiency, including progressive phasing-out of energy subsidies.\n  - Strengthen governance, transparency, and anti-corruption frameworks.\n- Specific policy recommendations from the Acting Chair’s statement:\n  - Accelerate implementation of the medium-term revenue strategy, including streamlining VAT exemptions and broadening the tax base.\n  - Gradually eliminate untargeted energy subsidies while strengthening social safety nets.\n  - Apply prudent debt management and enhance oversight of SOEs borrowing and public-private partnership operations to mitigate debt sustainability risks."
    },
    {
      "heading": "Structural reforms, governance, and financial sector",
      "content": "- Recommended structural reforms to promote inclusive, private sector-led growth:\n  - Enhance social safety nets.\n  - Strengthen governance and transparency.\n  - Improve the business environment.\n  - Address weaknesses in the financial sector.\n- Anti-corruption and AML/CFT priorities:\n  - Empower the anti-corruption agency (OFNAC) and strengthen the asset declaration system for public officials.\n  - Urgent actions needed to address deficiencies in the AML/CFT framework to avoid negative macroeconomic and reputational repercussions and to exit the FATF’s grey list."
    },
    {
      "heading": "Climate-related reforms under the RSF",
      "content": "- RSF-supported policy reform focus:\n  - Mitigation measures to protect against coastal erosion.\n  - Enhance water management to strengthen agriculture.\n  - Integrate climate change considerations into the budget process.\n  - Leverage synergies with the World Bank, the Global Center on Adaptation, and other development partners to catalyze private climate financing."
    },
    {
      "heading": "Selected indicators (from Table 1)",
      "content": "- Immediate program parameters and fiscal target:\n  - 36-month program.\n  - Fiscal deficit target: 3 percent of GDP by 2025.\n- Macroeconomic outcomes and projections (selected figures as presented):\n  - Growth decelerated to 4.0 percent (2022).\n  - Inflation accelerated to 9.7 percent (2022).\n  - ECF/EFF: SDR 1.132 billion (about US$1.51 billion).\n  - RSF: SDR 242.7 million (about US$324 million).\n  - Immediate disbursement: SDR 161.8 million (about US$216 million).\n- Public sector debt (listed in table): Total public debt 69.2 73.2 73.3 75.1 76.6 73.7 77.7 70.4 69.5 68.7\n- Other table figures cited in the release:\n  - Gross domestic product (CFAF billions): 14,101 15319.0 15,288 17092.7 17,268 19093 18,770 21,176 23,202 24,806 26,596\n\nInternational Monetary Fund. Press Release No. 23/239, June 26, 2023.\n\n---\n\n\n References\n\n- Kenji Okamura\n- PRESS CENTER\n- Senegal and the IMF\n- The IMF and Good Governance -- A Factsheet\n- IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/06/26/pr23239-senegal-imf-executive-board-approves-usd-billion-under-eff-and-ecf-and-usd-million-under-rsf"
    }
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    "Published: June 26, 2023",
    "Executive Board approved a 36-month Extended Credit Facility (ECF) and Extended Fund Facility (EFF) of SDR 1.132 billion (about US$1.51 billion) with Senegal.",
    "Executive Board also approved an Arrangement Under the Resilience and Sustainability Facility (RSF) of about SDR 242.7 million (about US$324 million).",
    "The Executive Board’s decision enables an immediate disbursement equivalent to SDR 161.8 million (about US$216 million) under the EFF/ECF.",
    "EFF/ECF-supported program objectives:",
    "RSF objectives:",
    "Key shocks and challenges affecting Senegal:",
    "2022 outcomes highlighted in the press release:",
    "Medium-term prospects:",
    "Authorities’ fiscal intentions:",
    "Specific policy recommendations from the Acting Chair’s statement:",
    "Recommended structural reforms to promote inclusive, private sector-led growth:",
    "Anti-corruption and AML/CFT priorities:",
    "RSF-supported policy reform focus:",
    "Immediate program parameters and fiscal target:",
    "Macroeconomic outcomes and projections (selected figures as presented):",
    "Public sector debt (listed in table): Total public debt 69.2 73.2 73.3 75.1 76.6 73.7 77.7 70.4 69.5 68.7",
    "Other table figures cited in the release:",
    "[Kenji Okamura](https://www.imf.org/en/About/senior-officials/Bios/kenji-okamura)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Senegal and the IMF](http://www.imf.org/external/country/SEN/index.htm)",
    "[The IMF and Good Governance -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/the-imf-and-good-governance)",
    "[IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)",
    "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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