Abstract
The Gambian economy is still recovering from the severe drought and crop failure. Depreciation pressure on the Dalasi has largely been driven by weaknesses in the balance of payments and uncertainty about exchange rate policy. Executive Directors have urged the government to curb domestic borrowing and to sustain the fiscal adjustment needed to reduce the high cost and risks of domestic debt. They have also commended the progress achieved toward eliminating fiscal dominance and encourage implementing a restrained monetary policy.
Relations with the Fund
(As of March 31, 2013)
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 Tranche Position | 1.54 | 4.96 |
| SDR Million | % Quota | |
|---|---|---|
| Quota | 31.10 | 100.00 |
| Fund holdings of currency | 29.59 | 95.14 |
| Reserve Tranche Position | 1.54 | 4.96 |
SDR Department
| SDR Million | % Allocation | |
|---|---|---|
| Net cumulative allocation | 29.77 | 100.00 |
| Holdings | 23.97 | 80.51 |
| SDR Million | % Allocation | |
|---|---|---|
| Net cumulative allocation | 29.77 | 100.00 |
| Holdings | 23.97 | 80.51 |
Outstanding Purchases and Loans
| SDR Million | % Quota | |
|---|---|---|
| ECF arrangements | 31.28 | 100.57 |
| SDR Million | % Quota | |
|---|---|---|
| ECF arrangements | 31.28 | 100.57 |
Latest Financial Arrangements
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | May 25, 2012 | May 24, 2015 | 18.66 | 9.33 |
| ECF | Feb. 21, 2007 | Mar. 31, 2011 | 24.88 | 22.55 |
| ECF | Jul. 18, 2002 | Jul. 17, 2005 | 20.22 | 2.89 |
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | May 25, 2012 | May 24, 2015 | 18.66 | 9.33 |
| ECF | Feb. 21, 2007 | Mar. 31, 2011 | 24.88 | 22.55 |
| ECF | Jul. 18, 2002 | Jul. 17, 2005 | 20.22 | 2.89 |
Projected Payments to Fund (SDR million; based on current use of resources and present holdings of SDRs)1
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2013 | 2014 | 2015 | 2016 | 2017 | |
| Principal | 0.60 | 2.11 | 3.84 | 4.28 | 5.24 |
| Charges/interest | 0.00 | 0.00 | 0.07 | 0.06 | 0.05 |
| Total | 0.60 | 2.12 | 3.91 | 4.34 | 5.29 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2013 | 2014 | 2015 | 2016 | 2017 | |
| Principal | 0.60 | 2.11 | 3.84 | 4.28 | 5.24 |
| Charges/interest | 0.00 | 0.00 | 0.07 | 0.06 | 0.05 |
| Total | 0.60 | 2.12 | 3.91 | 4.34 | 5.29 |
Implementation of HIPC Initiative
| Commitment of HIPC assistance | Enhanced Framework | ||
|---|---|---|---|
| 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 | Dec. 19,2007 | ||
| Disbursement of IMF assistance (SDR million) | 2.29 | ||
| Assistance disbursed to the member | 1.80 | ||
| Interim assistance | 0.44 | ||
| Completion point balance | 1.36 | ||
| Additional disbursement of interest income4 | 0.49 | ||
| Commitment of HIPC assistance | Enhanced Framework | ||
|---|---|---|---|
| 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 | Dec. 19,2007 | ||
| Disbursement of IMF assistance (SDR million) | 2.29 | ||
| Assistance disbursed to the member | 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) | ||
| 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 | PRGT | Total |
| December 2007 | N/A | 9.42 | 9.42 |
| Eligible Debt | |||
|---|---|---|---|
| Delivery Date | GRA | PRGT | 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, 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–March 2013, the midpoint exchange rate in the interbank market was D35.21 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.
Last Article IV consultation
The Executive Board concluded the 2011 Article IV consultation (SM/11/338) on January 18, 2012.
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
| February 2013 | TA mission advised on tax policy reform options |
| January/February 2013 | TA 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 2012 | A couple of experts advised on PFM. |
| January/February 2012 | An IMF regional advisor visited twice to provide TA on revenue administration and VAT preparations. |
| September 2011 | A couple of experts advised on PFM (preparing a Budget Framework Paper) and on VAT preparations. |
| August 2011 | Peripatetic expert advised on improving compliance and tax administration. |
| April/May 2011 | TA mission advised on VAT preparations. |
| April 2011 | TA mission reviewed the pricing formula for petroleum products. |
| February/March 2011 | TA mission reviewed status of revenue administration reforms, including VAT implementation plans. |
| November/December 2010 | Peripatetic expert advised on VAT preparations. |
| 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. |
| February 2013 | TA mission advised on tax policy reform options |
| January/February 2013 | TA 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 2012 | A couple of experts advised on PFM. |
| January/February 2012 | An IMF regional advisor visited twice to provide TA on revenue administration and VAT preparations. |
| September 2011 | A couple of experts advised on PFM (preparing a Budget Framework Paper) and on VAT preparations. |
| August 2011 | Peripatetic expert advised on improving compliance and tax administration. |
| April/May 2011 | TA mission advised on VAT preparations. |
| April 2011 | TA mission reviewed the pricing formula for petroleum products. |
| February/March 2011 | TA mission reviewed status of revenue administration reforms, including VAT implementation plans. |
| November/December 2010 | Peripatetic expert advised on VAT preparations. |
| 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. |
Monetary and Capital Markets Department
| April/May 2013 | TA mission on banking supervision. |
| September/October 2012 | Technical expert advised on monetary operations and liquidity forecasting. |
| January 2012 | Technical expert advised the CBG on amending its Manual of Guidelines and Instructions to strengthen bank supervision. |
| September 2011 | TA mission conducted stress testing and helped built capacity in this area. |
| February/March 2011 | TA mission conducted a diagnostic assessment of the banking system. |
| 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. |
| April/May 2013 | TA mission on banking supervision. |
| September/October 2012 | Technical expert advised on monetary operations and liquidity forecasting. |
| January 2012 | Technical expert advised the CBG on amending its Manual of Guidelines and Instructions to strengthen bank supervision. |
| September 2011 | TA mission conducted stress testing and helped built capacity in this area. |
| February/March 2011 | TA mission conducted a diagnostic assessment of the banking system. |
| 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. |
Statistics Department
| February/March 2013 | DfID-funded TA mission advised the authorities on improving BOP statistics. |
| November 2012 | Technical expert advised on improving the compilation of price statistics. |
| July/August 2012 | DfID-funded short-term expert advised the authorities on improving national accounts statistics. |
| January/February 2012 | Technical expert advised on improving the compilation of price statistics. |
| September 2011 | DfID-funded TA mission advised the authorities on improving BOP statistics. |
| July 2011 | DfID-funded short-term expert advised the authorities on improving national accounts statistics. |
| March/April 2011 | DfID-funded TA mission advised the authorities on improving BOP statistics. |
| September 2010 | DfID-funded short-term expert advised the authorities on improving national accounts statistics. |
| 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. |
| February/March 2013 | DfID-funded TA mission advised the authorities on improving BOP statistics. |
| November 2012 | Technical expert advised on improving the compilation of price statistics. |
| July/August 2012 | DfID-funded short-term expert advised the authorities on improving national accounts statistics. |
| January/February 2012 | Technical expert advised on improving the compilation of price statistics. |
| September 2011 | DfID-funded TA mission advised the authorities on improving BOP statistics. |
| July 2011 | DfID-funded short-term expert advised the authorities on improving national accounts statistics. |
| March/April 2011 | DfID-funded TA mission advised the authorities on improving BOP statistics. |
| September 2010 | DfID-funded short-term expert advised the authorities on improving national accounts statistics. |
| 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. |
Others
| February 2012 | An LEG expert held a VAT workshop for stakeholders and helped finalize the new VAT law and related background materials. |
| December 2011 | An LEG expert helped draft the new VAT law. |
| February 2012 | An LEG expert held a VAT workshop for stakeholders and helped finalize the new VAT law and related background materials. |
| December 2011 | An LEG expert helped draft the new VAT law. |
Resident Representative
Mr. Meshack Tjirongo was appointed the Fund’s Resident Representative to The Gambia in January 2010.
Joint Bank-Fund Work Program, April 2013–April 2014
| Title | Products | Timing of Missions | Target Board Date |
|---|---|---|---|
| A. Mutual Information on Relevant Work Program | |||
| Bank work program in next 12 months | Economic Management and Public Financial Management | ||
| 1. Economic Governance Reform Grant | September/October 2013 | November/December 2013 | |
| 2. IFMIS: Additional Financing | April/May 2013 | September 2013 | |
| Growth and Competitiveness | |||
| 3. Commercial Agriculture and Value Chain Project | June/September 2013 | March 2014 | |
| Human Development | |||
| 4. Quality of Education | March/June 2013 | February 2014 | |
| 5. Nutrition and Health Project | March/June 2013 | February 2014 | |
| Fund work program in next 12 months | Policy Advice | ||
| 1. First review under new ECF | September 2012/April 2013 | May 2013 | |
| 2. Article IV consultation | August 2013 | ||
| June 2013 | |||
| 3. Second review under new ECF | November 2013 | ||
| September/October 2013 | |||
| 4. Third review under new ECF | May 2014 | ||
| March 2014 | |||
| Technical Assistance | |||
| 1. VAT implementations | |||
| Resident advisor currently in place | |||
| 2. Stress testing | |||
| July 2013 | |||
| 3. Repo operations | September 2013 | ||
| B. Requests for Work Program Inputs | |||
| Fund request to Bank | Periodic updates on: CPIA, PFM reform, and civil service reform. | ||
| Bank request to Fund | Periodic updates on macroeconomic framework. | ||
| C. Agreement on Joint Products and Missions | |||
| Joint products in next 12 months | Joint DSA | March 2014 | May 2014 |
| Title | Products | Timing of Missions | Target Board Date |
|---|---|---|---|
| A. Mutual Information on Relevant Work Program | |||
| Bank work program in next 12 months | Economic Management and Public Financial Management | ||
| 1. Economic Governance Reform Grant | September/October 2013 | November/December 2013 | |
| 2. IFMIS: Additional Financing | April/May 2013 | September 2013 | |
| Growth and Competitiveness | |||
| 3. Commercial Agriculture and Value Chain Project | June/September 2013 | March 2014 | |
| Human Development | |||
| 4. Quality of Education | March/June 2013 | February 2014 | |
| 5. Nutrition and Health Project | March/June 2013 | February 2014 | |
| Fund work program in next 12 months | Policy Advice | ||
| 1. First review under new ECF | September 2012/April 2013 | May 2013 | |
| 2. Article IV consultation | August 2013 | ||
| June 2013 | |||
| 3. Second review under new ECF | November 2013 | ||
| September/October 2013 | |||
| 4. Third review under new ECF | May 2014 | ||
| March 2014 | |||
| Technical Assistance | |||
| 1. VAT implementations | |||
| Resident advisor currently in place | |||
| 2. Stress testing | |||
| July 2013 | |||
| 3. Repo operations | September 2013 | ||
| B. Requests for Work Program Inputs | |||
| Fund request to Bank | Periodic updates on: CPIA, PFM reform, and civil service reform. | ||
| Bank request to Fund | Periodic updates on macroeconomic framework. | ||
| C. Agreement on Joint Products and Missions | |||
| Joint products in next 12 months | Joint DSA | March 2014 | May 2014 |
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.