IMF provides funding of US$570,000 to Sao Tome and Principe

18 December 2013

The International Monetary Fund (IMF) has approved delivery of US$570,000 to Sao Tome and Principe, as part of the second review of its funding programme worth US$3.9 million, the IMF said in a statement issued Monday.

As part of this programme, which will be in place until 2015 and was approved in July 2012, Sao Tome and Principe has already received US$1.7 million, the IMF said, adding that a report was due to be presented under the terms of Article 4, which outlines an annual review of all the economies that are IMF members.

“The authorities [in Sao Tome] should be praised for the performance they have achieved with the IMF-sponsored programme. Stable economic growth and reduced inflation have been maintained in a difficult global climate and prudent approach to public accounts have bolstered the fixed exchange rate system.2 said the assistant director of the IMF, Min Zhu, in the statement that announced the handover of the second tranche of external aid.

“Looking to the future it is important to continue to boost the elasticity of the economy, particularly due to the uncertainties about oil production. Budgetary discipline, mainly ahead of elections in 2014, will be crucial. In this respect, it will continue to be necessary to improve mobilisation of revenues as a way of creating additional room for public investment and social spending,” said the assistant director of the IMF. (macauhub)