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The Gambia: Request for Disbursement Under the Rapid Credit Facility, Cancellation of the Extended Credit Facility Arrangement, and Proposal for a Staff-Monitored Program—Informational Annex

Author(s):
International Monetary Fund. African Dept.
Published Date:
April 2015
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Relations with the Fund

(As of January 31, 2015)

Membership status. Joined September 21, 1967. The Gambia accepted the obligations under Article VIII, Sections 2(a), 3, and 4, of the Fund’s Articles of Agreements on January 21, 1993. It maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions.

General Resources Account

SDR Million% Quota
Quota31.10100.00
Fund holdings of currency29.5995.14
Reserve Tranche Position1.544.96

SDR Department

SDR Million% Allocation
Net cumulative allocation29.77100.00
Holdings21.0470.69

Outstanding Purchases and Loans

SDR Million% Quota
ECF arrangements31.28100.57

Latest Financial Arrangements

TypeDate of ArrangementExpiration DateAmount Approved

(SDR Million)
Amount Drawn

(SDR Million)
ECFMay 25, 2012May 24, 201518.6610.89
ECFFeb. 21, 2007Mar. 31, 201124.8822.55
ECFJul. 18, 2002Jul. 17, 200520.222.89

Projected Payments to Fund (SDR million; based on current use of resources and present holdings of SDRs)1

Forthcoming
20152016201720182017
Principal3.644.285.245.534.58
Charges/interest0.000.000.000.000.03
Total3.654.285.255.544.60

Implementation of HIPC Initiative

Enhanced

Framework
Commitment of HIPC assistance
Decision point date2Dec. 11, 2000
Assistance committed (year-end 2000 NPV terms)3
Total assistance (US$ million)66.60
Of which: IMF assistance (US$ million)2.30
SDR equivalent, million1.80
Completion point dateDec. 19, 2007
Disbursement of IMF assistance (SDR million)2.29
Assistance disbursed to the member1.80
Interim assistance0.44
Completion point balance1.36
Additional disbursement of interest income40.49

Implementation of Multilateral Debt Relief Initiative (MDRI)

MDRI-eligible debt (SDR million)59.42
Financed by: MDRI Trust7.44
Remaining HIPC resources1.98
Debt Relief by Facility (SDR million)
Eligible Debt
Delivery DateGRAPRGTTotal
December 2007N/A9.429.42

Safeguards assessments

Safeguards assessments of the Central Bank of The Gambia (CBG) were completed in February 2004, February 2007, November 2009, and July 2012. The 2012 update report concluded that the CBG governance has strengthened since the 2009 assessment. The recent assessment stressed that continued and effective oversight by both the Board and the Audit Committee will be important to ensure that key areas of CBG operations such as transactions with the government, controls around IT systems, and compilation of program data are adequately monitored to mitigate heightened risk. The CBG is facing capacity issues in accounting and internal audit that need to be addressed in the near term. Future amendment of the CBG Law would provide the opportunity to strengthen CBG autonomy by the incorporation of safeguards recommendations in this area.

Exchange rate arrangement

Until January 20, 1986, the Gambian currency, the dalasi, was pegged to the pound sterling at a rate of D5 = £1. On January 20, 1986, an interbank market for foreign exchange was introduced, and since then the exchange rate has been determined by market forces. Effective February 2, 2009, the classification of the de facto exchange rate arrangement has been changed from managed floating with no predetermined path for the exchange rate to floating, retroactively to April 30, 2008, due to the revision of the classification methodology. As of end–January 2015, the midpoint exchange rate in the interbank market was D45.23 per U.S. dollar. The Gambia has accepted the obligations of Article VIII, Sections 2(a), 3 and 4 and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions, except for restrictions maintained solely for the preservation of national or international security, which have been notified to the Fund in accordance with the procedures set forth in Executive Board decision 144-(52/51). In October 2012, a presidential directive was issued that attempted to impose a fixed, overly appreciated exchange rate on The Gambia’s FX market. The directive was lifted a few weeks later. LEG in discussion with MCM later concluded that the FX measures adopted under the directive did not give rise to an exchange restriction or multiple currency practice in breach of the obligations under Article VIII, Sections 2(a) and 3. Staff continues to engage with the authorities in order to finalize its assessment of The Gambia’s exchange system.

Last Article IV consultation

The Executive Board concluded the 2013 Article IV consultation (IMF Country Report No. 13/289) on September 11, 2013.

Technical assistance

The Fund has been providing The Gambia with extensive technical assistance in macroeconomic, fiscal, and monetary areas, and in improving the compilation of macroeconomic statistics. Specific technical assistance projects since 2008 are the following:

Fiscal Affairs Department
August 2014TA mission advised on revenue administration
February/March 2014TA mission advised on the implementation of the Medium Term Expenditure Framework and program based budgeting
February 2013TA mission advised on tax policy reform options
January/February 2013TA mission advised on reorganization of MOFEA to strengthen budget and MTEF reforms and fiscal reporting
June 2012 -A resident advisor advised on PFM.
June 2012 -A resident advisor advised on revenue administration.
April 2012 -A resident advisor advised on VAT preparations and implementations.
February/March 2012A couple of experts advised on PFM.
January/February 2012An IMF regional advisor visited twice to provide TA on revenue administration and VAT preparations.
September 2011A couple of experts advised on PFM (preparing a Budget Framework Paper) and on VAT preparations.
August 2011Peripatetic expert advised on improving compliance and tax administration.
April/May 2011TA mission advised on VAT preparations.
April 2011TA mission reviewed the pricing formula for petroleum products.
February/March 2011TA mission reviewed status of revenue administration reforms, including VAT implementation plans.
November/December 2010Peripatetic expert advised on VAT preparations.
August 2010Peripatetic expert advised on VAT preparations.
June 2010TA mission on public financial management (PFM).
April/May 2010TA mission advised on improvements in revenue administration and provided input into the design of tax reforms.
April 2009TA mission advised on measures to reform the tax system.
July 2008Peripatetic regional advisor followed up on the work of the August/September 2007 FAD mission.
Monetary and Capital Markets Department
March 2014TA mission on banking supervision (manual of guidelines for regulatory returns)
March 2014TA mission advised on monetary operations and liquidity management
April/May 2013TA mission on banking supervision.
September/October 2012Technical expert advised on monetary operations and liquidity forecasting.
January 2012Technical expert advised the CBG on amending its Manual of Guidelines and Instructions to strengthen bank supervision.
September 2011TA mission conducted stress testing and helped built capacity in this area.
February/March 2011TA mission conducted a diagnostic assessment of the banking system.
March/April 2010Technical expert advised the CBG on banking supervision.
January 2010Technical expert advised on monetary operations and liquidity forecasting.
January 2009Technical expert advised the CBG on banking supervision.
Statistics Department
February 2015Mission advised on the compilation of financial soundness indicators for the banking sector.
February 2015Mission advised on economic census.
January/ February 2015DfID-funded TA mission advised on the compilation of mutually consistent BOP and IIP statements.
October 2014Mission on advised on national accounts and economic census.
October/November 2013Mission advised on the compilation of national accounts.
July/ August 2013Mission advised the compilation of price statistics.
February/March 2013DfID-funded TA mission advised the authorities on improving BOP statistics.
January/February 2012Technical expert advised on improving the compilation of price statistics.
September 2011DfID-funded TA mission advised the authorities on improving BOP statistics.
July 2011DfID-funded short-term expert advised the authorities on improving national accounts statistics.
March/April 2011DfID-funded TA mission advised the authorities on improving BOP statistics.
September 2010DfID-funded short-term expert advised the authorities on improving national accounts statistics.
August/September 2010DfID-funded TA mission advised the authorities on improving BOP and IIP statistics.
February 2010TA mission advised on measures to improve monetary and financial statistics.
June 2008Fourth visit of the DfID-funded TA mission assisted the authorities in improving the compilation of national accounts statistics, particularly in rebasing the GDP series and in calculating GDP by the expenditure approach, using the results from the 2004 Economic Census.
April/May 2008Follow-up visit of a 2006 TA mission to assist the CBG in improving the compilation of monetary and financial statistics and in preparing the standardized report forms for reporting monetary data to the IMF.
March 2008Third visit of the DfID-funded TA mission assisted the authorities in improving the compilation of national accounts statistics, particularly in rebasing the GDP series and in calculating GDP by
the expenditure approach, using the results from the 2004 Economic Census.
Others
February 2012An LEG expert held a VAT workshop for stakeholders and helped finalize the new VAT law and related background materials.
December 2011An LEG expert helped draft the new VAT law.

Resident Representative

Mr. Gaston, K Mpatswe was appointed the Fund’s Resident Representative to The Gambia in August 2013.

Joint Bank-Fund Work Program

The Gambia: Joint Bank-Fund Work Program, April 2013 – April 2014
TitleProductsTiming of MissionsTarget Board Date
A. Mutual Information on Relevant Work Program
Bank work program in next 12 monthsEconomic Management and Public Financial Management

1. Economic Governance Reform Grant

Human Development

2. Maternal and Child Nutrition and Health Results Based Financing
April 2015 (tentative)



February 2015
May 2015



April 24, 2015
Fund work program in next 12 monthsPolicy Advice

1. Staff Visit

2. Article IV consultation

3. SMP Review

4. Successor ECF discussion

Technical Assistance

5. Monetary operations

6. Bank supervision
April 2015

June 2015

November 2015

February 2016

March 2015

March 2015
August 2015

April 2016
B. Requests for Work Program Inputs
Fund request to BankPeriodic updates on: CPIA, PFM reform, and civil service reform.
Bank request to FundPeriodic updates on macroeconomic framework.April/May 2015 (tentative)n.a.
C. Agreement on Joint Products and Missions
Joint products in next 12 monthsJoint DSAJune 2014August 2015
1When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
2The Fund approved the decision on 12/15/2000 as Decision 12365-(00/126). The World Bank Board decision was taken on 12/14/2000.
3Assistance committed under the enhanced HIPC Initiative is expressed in net present value (NPV) terms at the decision point.
4Under the enhanced HIPC Initiative, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
5The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

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