## Lesotho: Lesotho—Staff Report for the 2000 Article IV Consultation and Request for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility

_IMF Staff Country Reports, June 12, 2001_

## Source details

**Canonical URL:** [Lesotho: Lesotho—Staff Report for the 2000 Article IV Consultation and Request for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility](https://www.imf.org/en/publications/cr/issues/2016/12/30/lesotho-lesotho-staff-report-for-the-2000-article-iv-consultation-and-request-for-a-three-4086)

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- [Markdown version](/en/publications/cr/issues/2016/12/30/lesotho-lesotho-staff-report-for-the-2000-article-iv-consultation-and-request-for-a-three-4086/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/30/lesotho-lesotho-staff-report-for-the-2000-article-iv-consultation-and-request-for-a-three-4086/index.json)
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## Bibliographic details
- Published: June 12, 2001
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451823677.002

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### Economic overview and risks
- The Lesotho economy is experiencing a downturn of economic growth, high unemployment and poverty, and fiscal and balance-of-payments pressures.
- The publication identifies pressures on the external current account balance and on gross international reserves as priorities for adjustment.

### Fiscal adjustment
- The size of the proposed fiscal adjustment is described as adequate because it focuses on improvement in the external current account balance and the maintenance of gross international reserves.

### Monetary arrangement and central bank actions
- The current monetary arrangement with South Africa has served Lesotho well.
- The efforts of the central bank to reduce the wide interest rate spreads, encourage financial intermediation, mobilize domestic savings, and reduce capital flight have been commended.

### Subject areas and keywords
- Subject: Banking, Capital spending, Commercial banks, Economic sectors, Expenditure, Fiscal policy, Public sector, Revenue administration
- Keywords: Africa, amortization payment, authorities' effort, balance of payments situation, Capital spending, CR, government operation, ISCR, Lesotho's Interim Poverty Reduction Strategy Paper, Public sector, SDR, Southern Africa, staff appraisal

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/30/lesotho-lesotho-staff-report-for-the-2000-article-iv-consultation-and-request-for-a-three-4086_