International Monetary Fund approves Sao Tome’s accounts and grants US$600,000

9 March 2006

Washington, United States, 09 March – The International Monetary Fund (IMF) has assessed the economic progress of Sao Tome and Principe as “satisfactory” and has granted the archipelago US$600,000 in funding, whilst warning that the country needed to create a transparent system for managing oil revenues, officials said Thursday.

In a report published this week, the IMF said that the “key challenges” for the near future were “the speeding up of structural reforms and reaching total transparency in managing oil revenues,” particularly through the publication of relevant information.

As well as this, it said, “there is a need to quickly implement an action plan to improve state water and electricity company finances and conclude viability studies for the airport and port.”

In relation to the country’s macro-economic development the IMF said it considered the government’s monetary policy and inflation as “appropriate” and applauds the aim of “maintaining the fiscal consolidation process begun in 2005.”

The loan now granted by the IMF increases total funding from the institution to the West African archipelago to US$1.2 million.(macauhub)