As the COVID-19 crisis continues to unfold, uncertainty remains exceptionally high. The Fund has provided extraordinary financial support as well as timely analysis and policy advice during the first phase of the crisis, but additional efforts are needed to help members secure a durable exit, minimize long-term scarring, and build a more sustainable and resilient economy. Against this backdrop, and in line with the strategic directions laid out in the Fall 2020 Global Policy Agenda and the International Monetary and Financial Committee (IMFC) Communiqué, this Work Program puts forward a prioritized Board agenda for December 2020 to June 2021, focused on activities of most critical importance to our members.
Ms. Nicole Laframboise, Mr. Boileau Loko, and Kathryn Langdon
supportive role played by the IMF in helping countries recover from natural disasters. Fundemergencyfinancing, policy support, and technical assistance have helped governments put together a policy response or build a macro framework that laid the foundation for recovery and/or unlocked other external financing. Further research on the effects of IMF financing in support of natural disasters on growth and fiscal balances would help to inform future deliberations on IMF support to members hit by natural disaster shocks.
The literature and recent experience suggests
This paper reviews the literature on the macroeconomic impact of natural disasters and presents the IMF’s role in assisting countries coping with natural catastrophes. Focusing on seven country cases, the paper describes the emergency financing, policy support, and technical assistance provided by the Fund to help governments put together a policy response or build a macro framework to lay the foundation for recovery and/or unlock other external financing. The literature and experience suggests there are ways to strengthen policy frameworks to increase resilience to natural disaster shocks, including identifying the risks and probability of natural disasters and integrating them more explicitly into macro frame-works, increasing flexibility within fiscal frameworks, and improving coordination amongst international partners ex post and ex ante.
OPEC Fund for International Development
Unidentified financing source
Source: Rwandan authorities, and IMF staff estimates and projections.
1/ Initial projection at the time of the first RCF request and includes the additional reserves needed to bring import cover to 4 months, which is a minimum level of reserves to be adequate (IMF Country Report No. 20/115).
2/ The financing gap after accounting for RCF-1 disbursement of US$109.4 million and CCRT grant of US$ 22 million.
levels. Energy sector issues continue to create debt and hinder growth. External balances and buffers remain under pressure. Moreover, over recent years, growth has been insufficient to reduce poverty and meet the needs of a rising and young population.
Following the Executive Board’s discussion on São Tomé and Príncipe, Mr. Tao Zhang, Deputy Managing Director and Acting Chair, issued the following statement:
“The Sãotoméan authorities’ swift response to the pandemic, supported by Fundemergencyfinancing, this ECF arrangement, and other unprecedented international