Economy, News

Gambia Gets Over US$16 Million Emergency Credit From IMF

Amadou Sanneh, Finance Minister

(JollofNews) – The Executive Board of the International Monetary Fund (IMF) Monday approved emergency financial assistance under the Rapid Credit Facility (RCF) in the amount equivalent to SDR11,662,500 (about US$16.1 million) for the Gambia to enable the authorities to meet their urgent balance of payment needs.

In addition, the Board was informed about the IMF Managing Director’s approval of a one-year staff-monitored program (SMP) to guide policy implementation.

With the recent political transition, the new government has inherited a dire economic situation and the country is faced with an urgent balance of payments need and a precariously low level of usable international reserves.

The Gambia has been hit by a bad agricultural season, the political turmoil following the elections in December 2016 has greatly reduced tourism receipts in early 2017, and higher fuel and commodity prices put further strain on the balance of payments. These shocks have exacerbated an already fragile macroeconomic situation, reflecting past economic mismanagement.

The IMF financial assistance is intended to address urgent balance of payments needs that have arisen on account of the shocks. It will help fill budgetary gaps while the authorities implement economic and structural policies aimed at restoring macroeconomic stability and reducing poverty.

The Executive Board’s approval of the RCF disbursement will also enable the authorities to engage in further discussions with the donor community regarding assistance to meet their remaining financing needs. The Board’s approval enables the immediate disbursement of the full amount of the RCF loan, which is equivalent to 18.75 percent of the Gambia’s quota in the IMF.

Following the Executive Board discussion, Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, said: “The Gambia faces an urgent balance of payments need triggered by a weak agricultural season, lower tourism receipts due to the political turmoil early this year, and higher commodity prices. These shocks along with past economic mismanagement have exacerbated an already weak economic situation.

“The Gambian authorities are strongly committed to a break with past policies and to restoring macroeconomic stability and debt sustainability. To that end, they intend to implement strong fiscal measures in 2017 and beyond. They have committed to drastically reducing domestic borrowing, including by ending central bank deficit financing, and are taking substantive measures to increase non-tax revenue and reduce expenditures in 2017.”

He added that Gambian authorities also plan to undertake comprehensive reforms of key state-owned enterprises to secure the planned fiscal adjustment. These efforts are complemented by substantial external support from development partners. However, sustained further efforts beyond 2017 will be needed to secure fiscal sustainability.

Mr Furusawa further added: “The Gambia’s high public debt exposes it to significant vulnerabilities. To reduce these vulnerabilities, multilateral development banks have committed to provide additional support and assurances of highly concessional support have been received from some of The Gambia’s major official bilateral creditors.

“The authorities are also committed to developing a strategy to reduce vulnerabilities stemming from domestic debt. These actions will help make debt sustainable over the medium term, although risks are expected to remain elevated. Over the coming months, it will be important for the authorities to continue to pursue a coordinated approach to secure assurances of support from other official creditors to reduce debt vulnerabilities.

“The IMF is supporting the efforts of the Gambia with resources from the Rapid Credit Facility. In addition, determined and strong policy implementation under the staff monitored program will be critical to restoring macroeconomic stability, help catalyze further donor financing and establish a track record as the basis for future program engagement with the IMF.”

21 Comments

  1. Too much debt in the name of the population but money will never reach its destination peasant farmers and people in need shame Africa!!

  2. Now that IMF has advanced this disruptive financial intervention and Gambia has accepted and taken her first step towards a sure and predictable financial collapse, it is incumbent on this administration to decide and detail to the citizens how the money will be spent, when and by whom. What plans are in place to reduce government spending while maintaining critical services so that we can divorce ourselves from this economic albatross. There is nothing wrong with borrowing if you have good plans towards self discipline, prudent financial policy and objectives and the wherewithal to ensure successful deployment of these objectives.
    Pray for our country
    God Bless The Gambia

  3. Dr Sarr, I too don’t get it if we’re still borrowing from the IMF instead & paying them interests, rather than domestic & pay (gain) the interest ourselves…?
    Our government do have constraints, & will do time & again due to manmade under the EVIL kanilai DEVIL devour of the economy &/ natural causes &/ factors but (the government) need to assess the overall cost effectiveness/es of these monetary agreement/s & implications; if to pay interest back to IMF on this “emergency credit” why not explore to do so cost-effectively & possibly domestically too…
    The monetary institutions shouldn’t take advantage of our state of economy pretend to help with the right-hand, rob with the left…

  4. If your government is to be believed,,,they inherited a broken economy, with historic under investment for decades and missing funds from corruption and embezzlement running into Billions of dalasis. While your government have published their wish list, and continue to canvass donor assistance and long term loans, at this time, I think it would be unfair to criticise their unenviable predicament.However, to focus on the integrity of Mr Jammeh’s assets, close down media house’s and detain Journalists and protesters, does not feel too far removed from the situation they came from or inherited. I agree with those who say to borrow only to keep up repayments on existing loans and debts and pay government wages, is only to admit they either have no room to move forward with a recovery agenda or they are only forestalling the day when those who come next will have to declare a failed state and economy. I am surprised the IMF have not yet called time on the Gambian economy. But maybe they are in the same boat with Gambia, fearing they are about to lose all they are owed. So perhaps they too are only putting off the inevitable consequence? Don’t forget the IMF were as much partners with all the previous governments over the last 52 years. So where does that leave their expert advice ???
    There are cost effective solutions outside the IMF. But your government does give the impression that they are living for today from hand to mouth and leaving all “In the hands of God ”
    I would have to be convinced that this coalition of ” odds and sods” have the economic energy and entrepreneurship to begin the reconstruction and revitalising mechanisms to create Growth and Jobs and New Business.
    Meanwhile I doubt the loan and doner season will end anytime soon.
    So what’s fresh ?Where are the signs of the new economic religion ?

  5. Makes us poorer than years ago because Dalasi is going to be rubbish shame

  6. This new transparent government should be showing more details on all these loans that they are accepting whether they are accepting the loans by choice or by force, (I believe it’s by the latter).
    ie. what collaterals are​ the government putting forward as guarantee? What are the arrangement (timelines)? and a detail breakdown of where the funds are going to be spent. Also seeing as the country is in such dire straits, if, you believe what they are saying, everyone in the government should take a pay cut, with President Barrow, leading the way by example!

  7. On the IMF borrowing, Jollofnews 28th June 2017
    It’s STUPID and HUMILIATING to borrow and borrow all the time! The rains are here. If fat-bellied Adama Barrow heads the farms with his hoes, axes,tractors, asks skinny Ousainou Darbo, fat-cheeked plumpy Mai Fatty to follow, the core of the Gambian population will know that the revolution to maintain self-esteem, self-reliance and geer towards sustainabble growth/development is not a JOKE.
    Sitting in the air-conditioned offices, promulgating un-financiable/grandiose project regulations with no prospects of income-generating to balance the budget is like a fairy tale.
    These loans/credits are tied to strings which begin with retrenching the civil service, debt servicing and all the hallmark of red-taped norms/regulations that our struggling economies can never meet in the life time of those signatories of the deals.
    A REVOLUTION for sustainable growth can never come true with leaders living flambouyant life-styles beyond the expectations of their people. That’s the government of the day in The Gambia.

    • Calm down Babu Soli. Let the Koriteh Benachin digest completely before you join the bantaba.
      How can you have issues with borrowing when you still idolise Yaya Jammeh. He lived off borrowing mate.
      Everything he did was the result of borrowing. Haven’t you seen domestic debt under Jammeh?
      How do you think Madam Zainab could shuttle around the globe on a state funded jet? Where was the D100’s of millions of maintenance cost of the “state” jet coming from?
      I agree, attitudes have to change, but for someone who still idolises Yaya Jammeh, you need to be humble in your criticism of the Barrow Administration.

  8. Gambians must face the truth; This is and was always going to be a government of failed promises. The transitional government of opposition party leaders and nominated President, have so far only replaced the Jola Hegemony to the Mandinka Hegemony. The cost of government up to today, witnessed this coalition spend ! spend! spend! on 5 star hotels, Jet set trips across the planet and expensive motor cars for family and friends. Meanwhile the only economic policy announced was to give the women farmers some seed and fertiliser. The Gambian economy is floating on remittances from abroad and loans and more loans and donor support given by foreign national interest. The coalition continue to adopt The APRC agenda in promoting non existance national policy, which bares no substance or tangible foundation leading to economic recovery. The promised reform of The Constitution lays somewhere between a rock and a hard place seeing government using the same draconian APRC legislation, to quell protest and harass and detain Journalists and close down Gambia’s premier media house. For the UDP this is a ” means to an end”
    >>not the means to end oppressionist legislation.
    Pa Mbai and Freedom Newspaper The Fatou Network gave the warnings months ago>>but were heavily condemned and criticised. I do not believe that given complete freedom of thought and speech that Demba Jawo, Alagi Yorrow Jallow or Madi Jobarteth would be at conflict with a conditional amalgamation of intelligent thoughts or appraisal on the wrong direction taken by The Barrow Presidency.
    The many calls for a Transparent Government within the boundaries of Probity, and Accountability has not yet shown its face. What we have witnessed is the prosecution of all things APRC, guarded by ECOWAS forces and reinforced by APRC legislation. If that is not the most unbelievable “irony” then I don’t know what is.

  9. A reminder,
    Where is the 50-million-dollar GENEROUS gift that China gave us? It was not a loan, not a grant to repay, but simply a GIFT. Who can tell us where that money is?
    Mind you, this Minister of Finance was jailed for crookery. I will never trust him!

  10. Babu
    Give me the hard evidence; the honourable (Minister Sanneh) gentleman’s jailing predicaments in past were politically (aprc) motivated; so can’t stain &/ slander him for that; for that’s justice denied; particularly concerning the physical torture; barbarically Sanneh was assaulted whilst under deterioration even under the so-called court proceedings…
    The supportive documents he’s alleged to have made for the youthful Gambian traveller to enable him for any assistance on the journey was REALISTIC (truthful) state of nature on the ground in Gambia at the time under the MURDEROUS OPPRESSIVE kanilai FIEFDOM (we can all attest to that fact)…
    Nelson Mandela been to jail for how many years; truth is no one can afford our precious times on mudslinging alone; got to be on genuine nation building & societal advancements…?

  11. Bajaw,
    What a paradoxical comparison. Please stop refuting EVIL to do EVIL. It’s like an promiscuity man who says to his wife:`You have committed fornication, so will I´. How can two wrongs make a right? There were intruments of law in place to support those youth to go abroad but not to engage in preparing false documents in the name of a bonafide political party to secure a travel visa or an asylum application.
    This man (Amadou Sanneh)would have never secured a ministerial position in Europe inspite of all odds against his party. He failed to struggle within the legality of his country. But this is the Gambia of the bitty vengeful, corrupt, tribalist and incompetent “coalition” administration. That’s why he is where he should not be.
    Besides, those he assisted to sneak out of The Gambia were NEVER threatened by the state. It was discovered after his arrest and jailing. So there was an outright intentional fraud to assist any Sam, Boto, Haruna to flee on false claims while he received money for his “assistance”. He was/is a CROOK, a CRIMINAL!

  12. I think Babu Soli, has every right to make his good points/ For sure Halifa Sallah wouldn’t touch this lot with a barge pole as soon as Darboe came back from Mile 2. The convenience of the coalition became temporarily inconvenient when the NA elections were to be decided. So when is a coalition not a coalition ? So what happened to the 3 year transitional period ? Basically some or all {being lawyers} should have known 3 years was against The Constitution. It’s all a bit tacky to say the least. On balance you would have to say the electorate were duped and if Jammeh had been anyone else he was duped as well and would have had every right to challenge the election result,,, as the winner was floating on an unconstitutional platform. Then of course there’s the written agreement to allow Jammeh to leave without bloodshed/ Barrow says he did not sign it. I think at the material time he was hiding under his hotel bed in Senegal along with 40,000 fleeing citizens..
    I think some Gambians live in dreams. Babu Soli keeps you all honest.

  13. Babu & Mike; is it not truthfully realistic to say rules of law both of you are now relying upon only obtains today under the current government; rather it’s HOOLIGANISM & WHATEVER suits the OPPRESSIVE kanilai KILLER DEVIL rewinding back to 6 months & beyond; nobody arrested today can claim to be physically assaulted in detention; contrary to what obtains under the kanilai KILLER FIEFDOM…
    Mikey, you were involved in cataloguing some of the kanilai FIEFDOM atrocities yourself to the British government back sometimes; it’s STRUGGLE AGAINST TYRANNICAL AUTOCRACY that NEEDED ALL the TRICKS in the Struggle Book to be thrown at…
    Michael, you know fully well that your home country engages in economic espionage, etc & any other ways that are of essence for economic development & advancements of the kingdom; ours is democracy at infancy at the moment; whilst you can easily criticise the young government, it’s got to be whiter than white for you should know how to throw stones when living in glass houses; David Cameron’s father was linked to offshore tax evasion schemes, yet he continued to be prime minister; a former native minister presented claims for expenses refunds including £10 (9.99) charges for rent of pornographic material, etc, etc…
    Yet, Mr Sanneh applied the General Liberation Struggle Guidelines to do an attestation for a genuine Gambian youthful traveller on realistic situational circumstances on the ground in Gambia at the material time; Babu’s bribery allegations of payment for making the document are unsubstantiated …
    Everyone knows what the physical, mental & psychological torture that existed with everyone on the ground in the Gambia & outside during the kanilai KILLER FIEFDOM era; whilst Sanneh only made an attestation for youthful would-be traveller to go in search of what to earn to remit back & contribute to sustain Gambia, there’s this EVIL kanilai KILLER DEVIL thieving the same meagre collective pot that everybody else are contributing to, to throw bits of it to some of the Foni & Cassamace sycophants who are still daydreaming about in denial…
    Sanneh got arrested; instead of parading him at the kangaroo courts, he’s barbarically assaulted physically against the very rules of law &/ procedure you Babu Soli & Mike are relying upon to suit your twisters…
    Why must anyone waste their valuable time for any of you…???

  14. It’s for the politicians to make up &/ break up on the 3 years Coalition Agreement; I’m no politicians neither a lawyer & can only opine individually amongst 1.9 million population…
    I for one, I’m on record already to have appealed to the politicians for the agreed 3 years Transitional Programs to be honoured in the constitutional update & referendum to be held; as I personally advocated all along for a Coalition unification on a full 5 year term OR 3 years; I never consulted any Constitution then & given the opportunity to go back, I’ll do so all over again; for it paid dividend & lead to our collective liberation which was everyone’s goal & aim in the struggle; if not for anything much, human sacrosanctity can obtain back on the ground in Gambia…
    All have noticed the fracture of the Coalition at the Natural Assembly elections but anyone with analytical minds would notice the cracks developed long, even before the kanilai KILLER DEVIL’s final flushing out down the toilet running away to the Equator…
    The so-called agreement Mike, was rather a “wish list” drafted by the EVIL kanilai KILLER in its willingness to back down face-sparingly at the eleventh hour with the negotiators promises to deliver to the Coalition government & relay back the outcome which was & can never honoured as grossly unrealistic…
    Politics in general, just like any & everywhere is full of games & gimmicks; long as the barbarities unheard of that obtained in the kanilai KILLER FIEFDOM era which are never part of any decent communities anywhere NEVER obtains EVER again…
    Each of the political parties have their own interests & comfortable ways of operations; & are at will & liberty to form any political arrangements to win votes to govern…
    Whilst we all chip in to criticise constructively &/ commend & encourage where rooms needs improvements…

  15. Rectification please – natural assembly should read – National assembly – thank you

  16. If it’s right it’s right>> if its wrong its wrong. There can never be any double standards. Jammeh was/ is/ and will always be a bad man. But it was the Mandinka majority that gave and maintained his power. This is a Gambian problem. Once you can sort this out, then progress within true Democracy will flourish. There is a long way to go on that one. Meanwhile the focus must be on getting Gambia off international life support>>>not chasing Jammeh’s ghost. This is a secondary matter which should be left to the law outside of government. They government have enough to repair just now. I really truly and honestly do not think endless seamless loans will move the true agenda forward. All it will do is leave the next government and the people with few options. Show me anything from the first 6 months that gives any confidence. You say no one got tortured>> Ok But isn’t that the way normal people behave.

  17. Bajaw>> my good friend>> read Dr Faal>>> on Jollof News and then tell me I am wrong.

  18. There can’t be double standards anywhere Mike; you got to take stock of what’s deemed acceptable in your own community when in attempts to measure others to perfection; thou holiest Britain isn’t perfect either…
    You identify with Mandinkas, one of the communities who opened their hearts to you & conferred you a “Gunjur citizen”; yet your only reward back is to apportion blame upon & slander them for the advent of the MURDEROUS OPPRESSIVE kanilai KILLER DEVIL ; an episode of hectic trounce of HELLISH experience rather as results of naivety of the general Gambian instead to blaming Mandinkas who equally had to endure like anyone else, alongside the tribal abusing including…
    The economy needs all & every support but can’t rely on borrowing with high maintenance costs; borrowing whenever & wherever necessary must venture inwardly to effective domestic low-cost endeavours amongst others…
    Mike, engage the government & do business when you want rather than tribalism embroils; you got Tory, Labour, DUP, Libdems, etc etc in Britain but you don’t engaged in English, Wales, Irish &/ Scottish name-calling; turn attentions to political parties & ideas for better Gambia; not divisive tribalism…??
    Mr Sanneh was paraded in the kangaroo courts & jailed (fair enough – he has paid for any “wrong committed” if any) but what about the barbaric physical torture meted out to him; alongside the so-called “court of law”; amongst many others like him; some of whom couldn’t survive the effects of the tortured…???
    Let’s do our bits to contribute our individual & collective quota for societal advancements & make the world better place for humanity…

  19. Will read Dr Faal & tell you in morning; time to sleep now for work tomorrow, good night Mikey.

  20. Bajaw>> with your morning coffee;

    The British government both Labour and Conservative/Lib Dem were very supportive to all my letters about the dire situation in Gambia. So were countless High Commissioners and their Deputies. I had a very nice letter from the resigning leader of the Lib/Dems this morning Mr Tim Farron who’s very personal reasons for his resignation are well known. On the whole {and it is on the whole that these things must be judged} The various Ministers, Lords and Ladies, and commoners MP’s etc. always supported the rights of Gambians without exception. Whilst the UK may give the impression that it is sinking into a political abyss, and has many new and difficult challenges at hand. The reflection of the majority will of the people epitomised by the recent General Election result, will have a positive effect on fairer/less polarised government for the foreseeable future. The British people have always been at there best when faced with severe challenges. Its wake up time again. My only criticism would be against the BBC and the British Press, whose power to destroy reputations and guide and change public opinion for the worse, only hinders free and unbiased thought and informed/ impartial social opinion.
    The Gambian social media sometimes suffer from the same illness. I am very proud to state to the best of my knowledge, that Jollof News editors do not indulge in any such practices and as a rule only report what it thinks is newsworthy, and encourages diverse opinion, which allows even the smallest voice a real opportunity to express considered opinion. I often wonder what I am doing here since 2006, but if any nation deserves to rise like the phoenix from the ashes..It is The Gambia. We all want the same thing. Sometimes just a difference of opinion can energise and stimulate debate offering up solutions. Take your umbrella today.

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