Abstract
The Gambian economy performed well in the face of external shocks under the Extended Credit Facility. Executive Directors welcomed the 2011 budget, which focuses mainly on revenue enhancement, limiting government’s domestic borrowing, and reduction of poverty. They agreed that IMF engagement has helped in anchoring the macroeconomic policy framework, fiscal adjustment, and signaling the donor community. Directors noted the recommendations of the Ex Post Assessment update and agreed that IMF engagement with The Gambia had a positive impact and granted an extension of the current arrangement.
The Gambia: Relations with the Fund
(As of October 31, 2010)
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 | |
|---|---|---|
| Quota | 31.10 | 100.00 |
| Fund holdings of currency | 29.59 | 95.14 |
| Reserve position in Fund | 1.54 | 4.96 |
| SDR Million | % Quota | |
|---|---|---|
| Quota | 31.10 | 100.00 |
| Fund holdings of currency | 29.59 | 95.14 |
| Reserve position in Fund | 1.54 | 4.96 |
SDR Department
| SDR Million | % Allocation | |
|---|---|---|
| Net cumulative allocation | 29.77 | 100.00 |
| Holdings | 24.60 | 82.64 |
| SDR Million | % Allocation | |
|---|---|---|
| Net cumulative allocation | 29.77 | 100.00 |
| Holdings | 24.60 | 82.64 |
Outstanding Purchases and Loans
| SDR Million | % Quota | |
|---|---|---|
| ECF arrangement | 20.22 | 65.00 |
| SDR Million | % Quota | |
|---|---|---|
| ECF arrangement | 20.22 | 65.00 |
Latest Financial Arrangements
| Type | Approval Date | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | Feb. 21, 2007 | Feb. 20, 2011 | 24.88 | 20.22 |
| ECF | Jul. 18, 2002 | Jul. 17, 2005 | 20.22 | 2.89 |
| ECF | Jun. 29, 1998 | Dec. 31, 2001 | 20.61 | 20.61 |
| Type | Approval Date | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | Feb. 21, 2007 | Feb. 20, 2011 | 24.88 | 20.22 |
| ECF | Jul. 18, 2002 | Jul. 17, 2005 | 20.22 | 2.89 |
| ECF | Jun. 29, 1998 | Dec. 31, 2001 | 20.61 | 20.61 |
Projected Payments to Fund (SDR million; based on current use of resources and present holdings of SDRs)1
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2010 | 2011 | 2012 | 2013 | 2014 | |
| Principal | 0.00 | 0.00 | 0.20 | 1.00 | 2.11 |
| Charges/interest | 0.00 | 0.02 | 0.07 | 0.07 | 0.07 |
| Total | 0.00 | 0.02 | 0.27 | 1.07 | 2.18 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2010 | 2011 | 2012 | 2013 | 2014 | |
| Principal | 0.00 | 0.00 | 0.20 | 1.00 | 2.11 |
| Charges/interest | 0.00 | 0.02 | 0.07 | 0.07 | 0.07 |
| Total | 0.00 | 0.02 | 0.27 | 1.07 | 2.18 |
| Implementation of HIPC Initiative | ||||||
| Enhanced Framework | ||||||
| Commitment of HIPC assistance | ||||||
| Decision point date2 | Dec. 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, million | 1.80 | |||||
| Completion point date | December 19, 2007 | |||||
| Disbursement of IMF assistance (SDR million) | 2.29 | |||||
| Assistance disbursed | 1.80 | |||||
| Interim assistance | 0.44 | |||||
| Completion point balance | 1.36 | |||||
| Additional disbursement of interest income4 | 0.49 | |||||
| Implementation of Multilateral Debt Relief Initiative (MDRI) | ||||||
| MDRI-eligible debt (SDR million)5 | 9.42 | |||||
| Financed by: MDRI Trust | 7.44 | |||||
| Remaining HIPC resources | 1.98 | |||||
| Debt Relief by Facility (SDR million) | ||||||
| Eligible Debt | ||||||
| Delivery Date | GRA | PRGF | Total | |||
| December 2007 | N/A | 9.42 | 9.42 | |||
| Implementation of HIPC Initiative | ||||||
| Enhanced Framework | ||||||
| Commitment of HIPC assistance | ||||||
| Decision point date2 | Dec. 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, million | 1.80 | |||||
| Completion point date | December 19, 2007 | |||||
| Disbursement of IMF assistance (SDR million) | 2.29 | |||||
| Assistance disbursed | 1.80 | |||||
| Interim assistance | 0.44 | |||||
| Completion point balance | 1.36 | |||||
| Additional disbursement of interest income4 | 0.49 | |||||
| Implementation of Multilateral Debt Relief Initiative (MDRI) | ||||||
| MDRI-eligible debt (SDR million)5 | 9.42 | |||||
| Financed by: MDRI Trust | 7.44 | |||||
| Remaining HIPC resources | 1.98 | |||||
| Debt Relief by Facility (SDR million) | ||||||
| Eligible Debt | ||||||
| Delivery Date | GRA | PRGF | Total | |||
| December 2007 | N/A | 9.42 | 9.42 | |||
Safeguards assessments
Safeguards assessments of the Central Bank of The Gambia (CBG) were completed in February 2004, February 2007, and November 2009. The 2007 assessment concluded that the CBG had initiated steps to improve its safeguards framework and recommended additional measures to strengthen the CBG’s internal controls and financial reporting practices. The 2009 update report concluded that the CBG had made good progress in implementing safeguards recommendations. The central bank continued to be audited by a reputable audit firm and implemented International Financial Reporting Standards. The assessment stressed that key safeguards should remain in place; most importantly, the term of the current audit firm expires after 2009 and a timely appointment of a reputable external auditor for 2010 and beyond will be needed. The assessment also recommended that the central bank formalize a framework for extension of credit to government to ensure compliance with the statutory limits.
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 June 30, 2002, the exchange rate arrangement of The Gambia was reclassified from independently floating to managed float with no preannounced path. As of end-October 2010, the midpoint exchange rate in the interbank market was D29.34 per U.S. dollar. The Gambia has accepted the obligations of Article VIII, Sections 2(a), 3, and 4 and maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions. The Gambia maintains exchange restrictions for security reasons, based on UN Security Council Resolutions, that have been notified to the Fund for approval (EBD/08/86, 08/13/08) under the procedures set forth in Executive Board Decision No. 144-(52/51).
Last Article IV consultation
The Executive Board concluded the 2010 Article IV consultation (SM/10/188) on August 25, 2010.
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 2007 are the following:
| Fiscal Affairs Department | |
| August 2010 | Peripatetic expert advised on VAT preparations. |
| June 2010 | TA mission on public financial management (PFM). |
| April/May 2010 | TA mission advised on improvements in revenue administration and provided input into the design of tax reforms. |
| April 2009 | TA mission advised on measures to reform the tax system. |
| July 2008 | Peripatetic regional advisor followed up on the work of the August/September 2007 FAD mission. |
| August/September 2007 | TA mission assessed all areas of public financial management and provided an action plan to secure the actual implementation of reforms initiated in the recent past. |
| Fiscal Affairs Department | |
| August 2010 | Peripatetic expert advised on VAT preparations. |
| June 2010 | TA mission on public financial management (PFM). |
| April/May 2010 | TA mission advised on improvements in revenue administration and provided input into the design of tax reforms. |
| April 2009 | TA mission advised on measures to reform the tax system. |
| July 2008 | Peripatetic regional advisor followed up on the work of the August/September 2007 FAD mission. |
| August/September 2007 | TA mission assessed all areas of public financial management and provided an action plan to secure the actual implementation of reforms initiated in the recent past. |
| Monetary and Capital Markets Department | |
| March/April 2010 | Technical expert advised the CBG on banking supervision. |
| January 2010 | Technical expert advised on monetary operations and liquidity forecasting. |
| January 2009 | Technical expert advised the CBG on banking supervision. |
| September 2007 | Mission advised on improving the monetary policy framework and enhancing the effectiveness of the monetary, foreign exchange, and debt management operations for the CBG. |
| March/May 2007 | Technical expert advised the CBG on banking supervision. |
| March/April 2007 | Technical expert advised the CBG on strengthening its capacity in internal auditing. |
| January/February 2007 | Technical expert advised the CBG on improving monetary operations. |
| Monetary and Capital Markets Department | |
| March/April 2010 | Technical expert advised the CBG on banking supervision. |
| January 2010 | Technical expert advised on monetary operations and liquidity forecasting. |
| January 2009 | Technical expert advised the CBG on banking supervision. |
| September 2007 | Mission advised on improving the monetary policy framework and enhancing the effectiveness of the monetary, foreign exchange, and debt management operations for the CBG. |
| March/May 2007 | Technical expert advised the CBG on banking supervision. |
| March/April 2007 | Technical expert advised the CBG on strengthening its capacity in internal auditing. |
| January/February 2007 | Technical expert advised the CBG on improving monetary operations. |
| Statistics Department | |
| September 2010 | DfID-funded short-term expert advised the authorities on improving the national accounts. |
| August/September 2010 | DfID-funded TA mission advised the authorities on improving BOP and IIP statistics. |
| February 2010 | TA mission advised on measures to improve monetary and financial statistics. |
| June 2008 | Fourth 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 2008 | Follow-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 2008 | Third 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. |
| October/November 2007 | Second visit of the DfID-funded TA mission assisted the authorities in improving the compilation of national accounts statistics, particularly in rebasing the GDP series using the results from the 2004 Economic Census. |
| September 2007 | A DfID-funded TA mission helped improve the compilation of balance of payments statistics. |
| August 2007 | A DfID-funded TA mission assisted in improving the compilation of national accounts statistics, particularly in rebasing the GDP series using the results from the 2004 Economic Census. |
| Statistics Department | |
| September 2010 | DfID-funded short-term expert advised the authorities on improving the national accounts. |
| August/September 2010 | DfID-funded TA mission advised the authorities on improving BOP and IIP statistics. |
| February 2010 | TA mission advised on measures to improve monetary and financial statistics. |
| June 2008 | Fourth 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 2008 | Follow-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 2008 | Third 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. |
| October/November 2007 | Second visit of the DfID-funded TA mission assisted the authorities in improving the compilation of national accounts statistics, particularly in rebasing the GDP series using the results from the 2004 Economic Census. |
| September 2007 | A DfID-funded TA mission helped improve the compilation of balance of payments statistics. |
| August 2007 | A DfID-funded TA mission assisted in improving the compilation of national accounts statistics, particularly in rebasing the GDP series using the results from the 2004 Economic Census. |
| Others | |
| March/April 2007 | A Poverty and Social Impact Analysis (PSIA) mission analyzed the planned reform of the groundnut sector and discussed with the authorities the implications of the reform. |
| Others | |
| March/April 2007 | A Poverty and Social Impact Analysis (PSIA) mission analyzed the planned reform of the groundnut sector and discussed with the authorities the implications of the reform. |
Resident Representative
Mr. Meshack Tjirongo was appointed the Fund’s Resident Representative to The Gambia in January 2010.
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
The Fund approved the decision on 12/15/2000 as Decision 12365-(00/126). The World Bank Board decision was taken on 12/14/2000.
Assistance committed under the enhanced HIPC Initiative is expressed in net present value (NPV) terms at the decision point.
Under 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.
The 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.