{
  "title": "IMF Executive Board Completes the Second Review Under the Extended Credit Facility Arrangement with the Union of the Comoros",
  "publication": "IMF News, June 21, 2024",
  "sourceUrl": "https://www.imf.org/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement",
  "canonical": "https://www.imf.org/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement",
  "overlayPath": "/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement/index.md",
  "summary": "The IMF Executive Board completed the second review under the Extended Credit Facility Arrangement with the Union of the Comoros. Approval of the second review enables the immediate disbursement of SDR 3.56 million (about US$ 4.68 million).",
  "publishDate": "2024-06-21",
  "sections": [
    {
      "heading": "Executive action and financing",
      "content": "- The Executive Board completed the second review under the Union of the Comoros’ Extended Credit Facility (ECF) arrangement.\n- Approval of the second review enables the immediate disbursement of SDR 3.56 million (about US$ 4.68 million).\n- The 4-year ECF arrangement was approved on June 1, 2023, with an access of SDR 32.04 million (about US$43 million).\n- The Executive Board approved the authorities’ request for a waiver of nonobservance of the continuous performance criterion on the non-accumulation of new external arrears, based on strong corrective actions taken by the authorities."
    },
    {
      "heading": "Program objectives and key policy priorities",
      "content": "- Program goals:\n  - Reduce fragility and increase economic resilience.\n  - Build fiscal buffers and reduce debt vulnerabilities.\n  - Strengthen the financial sector and governance.\n- Key policy priorities under the program:\n  - Mobilizing domestic revenue through reforms to strengthen tax and customs administration and streamline tax exemptions.\n  - Strengthening the financial sector, including completion of the restructuring of the state-owned postal bank SNPSF and enhancing the Central Bank’s banking supervision and resolution capacities.\n  - Strengthening governance through public financial management and anti-corruption reforms."
    },
    {
      "heading": "Implementation progress and program performance",
      "content": "- Performance highlights:\n  - Four of five quantitative performance criteria (QPCs) were met as of end-December 2023.\n  - Six of the eleven structural benchmarks (SBs) between December 2023 and May 2024 were met; two were implemented with delays; two end-June 2024 SBs were met ahead of time.\n- The authorities continue to demonstrate strong commitment to the ECF-supported program despite economic and institutional fragilities.\n- Reforms are beginning to bear fruit, with visible signs of macroeconomic stabilization.\n- Challenges noted: small, fragile island state vulnerabilities requiring steadfast program implementation and continued international support."
    },
    {
      "heading": "Macroeconomic outlook and risks",
      "content": "- Short- and medium-term outlook:\n  - Real GDP growth is expected to remain on an upward trajectory throughout the program period.\n  - Inflation is projected to decline further in 2024 and beyond.\n  - The domestic primary balance is expected to improve, driven in part by steady improvement in domestic revenue mobilization.\n  - The external sector is stable; gross international reserves are expected to remain above 7 months of import cover over the program period.\n- Risks and vulnerabilities:\n  - Significant development challenges and balance of payments needs.\n  - High risk of debt distress.\n  - Vulnerabilities in the banking system.\n  - Governance and corruption vulnerabilities.\n  - Exposure to climate change risks.\n- Policy recommendations emphasized by Mr. Kenji Okamura, Deputy Managing Director and Acting Chair:\n  - Maintain fiscal consolidation to reduce debt sustainability risks, underpinned by reforms in revenue administration and tax policy as well as normalization of public investment spending.\n  - Implement fiscal structural reforms to improve budget transparency, cash and debt management, and the performance and efficiency of SOEs and their oversight.\n  - Continue monetary policy efforts that have contained inflation and ensured sufficient external buffers and peg stability.\n  - Continue efforts to stabilize the financial sector, including restructuring the state-owned postal bank, addressing credit quality in the banking system, and strengthening banking supervision and resolution capacities.\n  - Continue governance and anti‑corruption reforms; note the recent formation of the Anti-Corruption Chamber and progress on aligning the AML/CFT framework and publishing public procurement contracts.\n  - Step up implementation efforts to ensure all program objectives are met; the IMF will provide close engagement, capacity development, economic surveillance, and program support. Support from international partners remains important."
    },
    {
      "heading": "Selected Economic Indicators (2023-26)",
      "content": "- Output\n  - Real GDP growth (%): 2023: 3.0; 2024: 3.5; 2025: 4.0; 2026: 4.3\n- Employment\n  - Unemployment (%): 2023: n.a.\n- Prices\n  - Inflation, period average (%): 2023: 8.5; 2024: 3.3; 2025: 1.7; 2026: 2.1\n- Central government finances\n  - Revenue and grants (% GDP): 2023: 16.5; 2024: 17.6; 2025: 15.8; 2026: 15.9\n  - Expenditure (% GDP): 2023: 17.8; 2024: 20.4; 2025: 18.3; 2026: 18.4\n  - Fiscal balance (% GDP): 2023: -1.2; 2024: -2.8; 2025: -2.6; 2026: -2.4\n  - Public debt (% GDP): 2023: 32.5; 2024: 34.3; 2025: 35.2; 2026: 35.5\n- Money and Credit\n  - Broad Money (% change): 2023: 8.7; 2024: 7.0; 2025: 6.0; 2026: 5.5\n  - Credit to private sector (% change): 2023: 12.8; 2024: 8.3; 2025: 5.7; 2026: 6.5\n  - 3-month Treasury bill interest rate (or similar) (%): 2023: 1.2; 2024: 2.2; 2025: 3.2\n- Balance of Payments\n  - Current account (% GDP): 2023: -2.5; 2024: -3.3; 2025: -3.9; 2026: -4.0\n  - FDI (% GDP): 2023: 0.4; 2024: 0.5; 2025: 0.6\n  - Reserves (months imports): 2023: 7.5; 2024: 9.4; 2025: 7.7; 2026: 10.4\n- External debt (% GDP): 2023: (not provided)\n- Exchange rate\n  - KMF/US$ (period average): 2023: 452.0; 2024: …\n\nSource: IMF Executive Board press release on the completion of the second review under the Extended Credit Facility Arrangement with the Union of the Comoros (Press Release No. 24/233).\n\n---\n\n\n References\n\n- Kenji Okamura\n- Union of the Comoros and the IMF\n- Press Releases\n- PRESS CENTER\n- approved on June 1, 2023\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement/index.md)",
    "[Structured JSON version](/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement/index.json)",
    "[Bundle manifest](/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement/bundle-manifest.json)",
    "Published: June 21, 2024",
    "The Executive Board completed the second review under the Union of the Comoros’ Extended Credit Facility (ECF) arrangement.",
    "Approval of the second review enables the immediate disbursement of SDR 3.56 million (about US$ 4.68 million).",
    "The 4-year ECF arrangement was approved on June 1, 2023, with an access of SDR 32.04 million (about US$43 million).",
    "The Executive Board approved the authorities’ request for a waiver of nonobservance of the continuous performance criterion on the non-accumulation of new external arrears, based on strong corrective actions taken by the authorities.",
    "Program goals:",
    "Key policy priorities under the program:",
    "Performance highlights:",
    "The authorities continue to demonstrate strong commitment to the ECF-supported program despite economic and institutional fragilities.",
    "Reforms are beginning to bear fruit, with visible signs of macroeconomic stabilization.",
    "Challenges noted: small, fragile island state vulnerabilities requiring steadfast program implementation and continued international support.",
    "Short- and medium-term outlook:",
    "Risks and vulnerabilities:",
    "Policy recommendations emphasized by Mr. Kenji Okamura, Deputy Managing Director and Acting Chair:",
    "Output",
    "Employment",
    "Prices",
    "Central government finances",
    "Money and Credit",
    "Balance of Payments",
    "External debt (% GDP): 2023: (not provided)",
    "Exchange rate",
    "[Kenji Okamura](https://www.imf.org/en/About/senior-officials/Bios/kenji-okamura)",
    "[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/)",
    "[approved on June 1, 2023](https://www.imf.org/en/News/Articles/2023/06/01/pr23194-comoros-imf-executive-board-approves-extended-credit-facility-arrangement-for-comoros)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement/index.md",
    "json": "/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement/index.json",
    "bundleManifest": "/en/news/articles/2024/06/21/pr24233-comoros-second-review-under-the-extended-credit-facility-arrangement/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T03:07:31.126Z"
}