Niger Unlocks Access to $41m IMF Loans
Niger has unlocked access to $41 million loan from the International Monetary Fund (IMF) as the Executive Board completed the Seventh Review under the Extended Credit Facility (ECF) Arrangement, and the Third Review under the Resilience and Sustainability Facility (RSF) Arrangement.
According to an official statement, the completion of the reviews allow for an immediate disbursement of about US$41 million cumulatively under the ECF and the RSF.
Niger growth in 2024 is estimated at 10.3 percent, driven by the start of crude oil exports and an exceptional agricultural harvest, and is expected to remain robust in 2025 at 6.6 percent, despite headwinds.
Nonetheless, there is significant uncertainty around the baseline, and downside risks are elevate, IMF said, adding that the country’s program implementation was broadly satisfactory.
“All performance criteria (PCs) were met, except for the continuous PC on the non-accumulation of new external arrears. All Indicative targets (ITs) were met, except for the ITs on the floor for the basic budget balance (including and excluding grants) at end-December 2024”, IMF said.
The Fund revealed that the ECF arrangement was extended by twelve months until December 2026 to support the implementation of additional reforms to consolidate recent progress in governance, to entrench sound fiscal policies, and to address the protracted balance of payments needs induced by the tight financing environment.
“The completion of the reviews allows for the immediate disbursement of SDR13.16 million which is about US$18 million) under the ECF—bringing total disbursements under the arrangement to SDR 184.24 million or about US$245 million.
“…and of SDR17.108 million (about US$23 million) under the RSF, bringing total disbursements under the RSF arrangement to SDR76.988 million (about US$101 million)”.
Following the meeting. Mr. Okamura, Deputy Managing Director, and Acting Chair of the Board said “The authorities’ implementation of their ECF- and RSF-supported programs was broadly satisfactory.
“Niger’s economy has demonstrated resilience against shocks stemming from political instability, conflict, and extreme climate events. Economic activity rebounded in 2024 and the near-term outlook is relatively favorable, driven by the extractive sector.
“Nevertheless, there is significant uncertainty and downside risks are elevated, including those linked to a deterioration of the security situation, the tightening of financing conditions, and further reductions in financial support from development partners.
“The authorities’ strong commitment to the program’s objectives will be key to ensure macroeconomic stability, while fostering economic development to lay the foundation to permanently escape fragility.
“Policy priorities include the achievement of the revenue-based fiscal adjustment trajectory, the swift implementation of the oil revenue management strategy supported by improved governance and transparency in the oil sector, the rollout of measures to strengthen revenue mobilization, and efforts to enhance the efficiency and quality of public spending.
“Given the tight financing conditions, the authorities should pursue a prudent borrowing policy, relying on concessional financing to limit the risk of debt distress.
“It is also essential to continue the implementation of the arrears clearance plan and strengthen treasury and debt management to prevent the accumulation of new arrears.
“The authorities should capitalize on the forthcoming Governance Diagnostic Assessment to formulate and implement policies aimed at enhancing governance frameworks.
“Promoting private sector development, addressing vulnerabilities in the financial sector, and advancing financial inclusion are also essential for achieving resilient and inclusive economic growth.
“These reforms will help build resilience to climate shocks and lay the foundation to unlock additional finance for climate-related investments.” #Niger Unlocks Access to $41m IMF Loans#
