This paper discusses Mali’s 2005 Article IV Consultation and Second and Third Reviews Under the Poverty Reduction and Growth Facility (PRGF). The PRGF-supported program is broadly on track. Performance on quantitative aspects remains strong. Although the record on the structural program has been disappointing, the program for 2006 would mark significant progress on addressing key challenges. The IMF staff supports the authorities’ request for completion of the second and third reviews under the arrangement and waivers for nonobservance of three structural performance criteria.
Senegal achieved robust economic growth and low inflation under the economic program. Executive Directors emphasized the need to correct slippages in fiscal governance and transparency to ensure budgetary discipline and strengthen procurement rules and practices. They appreciated the action plan for the development and soundness of the financial system, simplifying loan recovery procedures and improving the efficiency of the judiciary system to reduce nonperforming loans and increase credit availability. They welcomed the comprehensive framework for macroeconomic, structural, and social policies to foster growth and reduce poverty.
International Monetary Fund. External Relations Dept.
At a press conference following the IMFC meeting, IMF Managing Director Horst Köhler said that it was premature to decide on the timing of any staff visit to Iraq, but added that “there is an understanding that the World Bank and the IMF should prepare themselves and should take up this task.” This will represent the first official contact between Iraq and the IMF in many years. Iraq has been a member of the IMF since 1945, but the last Article IV consultation (annual discussion between the IMF and a member country on the general health of the economy) was completed in 1980; its 1983 consultation was prepared, but never completed. Although Iraq does not have any outstanding loans from the IMF, it does have arrears of close to $72 million (slightly over SDR 52 million) on its use of SDRs.