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IMF Country Report No. 20/267
GABON
REQUEST FOR PURCHASE UNDER THE RAPID FINANCING INSTRUMENT—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR GABON
August 2020
In the context of the request for a purchase under the Rapid Financing Instrument, the following documents have been released and are included in this package:
A Press Release including a statement by the Chair of the Executive Board.
The Staff Report prepared by a staff team of the IMF for the Executive Board’s consideration on July 31, 2020, following discussions that ended on July 17, 2020, with the officials of Gabon on economic developments and policies underpinning the IMF arrangement under the Rapid Credit Facility. Based on information available at the time of these discussions, the staff report was completed on July 24, 2020.
A Staff Supplement updating information on recent developments.
A Statement by the Executive Director for Gabon.
The IMF’s transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities’ policy intentions in published staff reports and other documents.
Copies of this report are available to the public from
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GABON
REQUEST FOR PURCHASE UNDER THE RAPID FINANCING INSTRUMENT
July 24, 2020
Executive Summary
Context. Since the approval of the first RFI request on April 9, 2020 (
Policy response. The authorities are taking steps to strengthen healthcare facilities, protect the most vulnerable households and support the private sector, notably small businesses. A package of monetary easing measures was approved by the Bank of Central African States (BEAC) and the Gabonese authorities adopted a revised budget with a larger deficit to accommodate automatic stabilizers and crisis-related emergency spending. The authorities are committed to further improve transparency and public financial management to ensure proper use of COVID-19 emergency resources.
Request for financial assistance. The RFI is the appropriate instrument to support Gabon at this juncture given the urgency of the BoP need and the high uncertainty about the outlook that made it difficult to complete a final review under the Extended Arrangement before it expired on June 18, 2020. In their attached LOI, the authorities have indicated their strong intention to request a new Fund-supported program to help preserve macroeconomic stability and debt sustainability and achieve higher and more inclusive growth. The DSA indicates that public debt remains sustainable, though debt dynamics have worsened with significant downside risks. Capacity to repay the Fund remains adequate.
Approved By
Zeine Zeidane (AFR) and Delia Velculescu (SPR)
Prepared by the Gabon staff team, comprising Boileau Loko (head), Jemma Dridi, Koffie Nassar and Fanta Sow (All AFR), Deirdre Daly (SPR), Bruno Imbert (FAD), Jean Portier (MCM), and Marcos Poplawski-Ribeiro (Resident Representative). Mses. Félicité Adjahouinou and Linnet Mbogo also contributed to the preparation of this report. Discussions took place on July 16–17, 2020, through video and teleconference.
Contents
RECENT DEVELOPMENTS, OUTLOOK AND RISKS
POLICY ISSUES AND DISCUSSIONS
A. Policy Issues
B. Access, Modalities, Capacity to Repay and Safeguards Assessment
STAFF APPRAISAL
BOX
1. COVID-19 Evolution
TABLES
1. Selected Economic Indicators, 2017–25
2. Balance of Payments, 2017–25
3a. Central Government Accounts, 2017–25 (billions of CFA francs)
3b. Central Government Accounts, 2017–25 (percent of GDP; billions of CFA francs)
3c. Central Government Accounts, 2017–25 (percent of non-oil GDP; billions of CFA francs)
4a. Financing of the Fiscal Deficit, 2017–21 (billions of CFA francs)
4b. Financing of the Fiscal Deficit, 2017–21 (percent of GDP)
5. Monetary Survey, 2017–21
6. Financial Soundness Indicators for the Banking System, 2015–19
7. Indicators of Capacity to Repay the Fund, 2020–31
ANNEXES
I. Risk Assessment Matrix
II. Planned Measures to Contain COVID-19 in Gabon
III. Debt Sustainability Analysis
APPENDIX
I. Letter of Intent
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GABON
REQUEST FOR PURCHASE UNDER THE RAPID FINANCING INSTRUMENT— SUPPLEMENTARY INFORMATION
July 30, 2020
Approved By
Vitaly Kramarenko (AFR) and Wes McGrew (SPR)
Prepared by the African Department in consultation with the Legal Department and the Strategy, Policy, and Review Department
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