Abstract
This paper discusses the request from Gambian authorities for a three-year arrangement under the extended credit facility (ECF). The Gambian economy performed well during the previous IMF arrangement, which expired at the end of March 2011; however, there were slippages under the program. The authorities requested a new three-year ECF arrangement, with a large initial disbursement, but relatively low access overall. The initial disbursement would support stability during the current drought crisis, while remaining disbursements would encourage fiscal adjustment and catalyze donor support for the poverty reduction strategy.
1. This statement provides information that has become available since the issuance of the staff report on May 10, 2012. The new information does not alter the thrust of the staff appraisal.
2. To date, the government has made allocations for drought relief totaling US$4.6 million, consisting of purchases of groundnut seeds and fertilizer. Commitments of donor assistance have totaled US$11.2 million. Under the program, it was projected that the total cost of drought relief activities would amount to US$23 million, much of which was to take place during the first half of 2012.
3. At the Monetary Policy Committee meeting on May 10, the reserve requirement was reduced by 2 percentage points, to 10 percent of deposit liabilities.