The Gambia: Article IV Consultation, Third Review under the Extended Credit Facility Arrangement, Request for Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for The Gambia
This paper discusses The Gambia’s Article IV Consultation, Third Review Under the Extended Credit Facility (ECF) Arrangement, Request for Modification of a Performance Criterion. Economic activity shows signs of recovery, albeit fragile. The authorities are intensifying coronavirus disease 2019 vaccination campaign to fight the pandemic and allow full resumption of activity, including tourism. In view of lingering vulnerabilities, maintaining exchange rate flexibility and adequate external buffers will be critical. Adherence to the external borrowing plan under the program and seeking grants and concessional financing will help secure debt sustainability. The ECF arrangement helps address the challenges from the pandemic, support inclusive growth, reduce debt vulnerabilities, and advance structural reforms. The Gambian authorities recognize the need to foster sustainable development, address the infrastructure gap through improved spending efficiency and revenue mobilization, and maintain financial and external stability.