Sao Tome and Principe: IMF provides funding of US$680,000 to Sao Tome and Principe [ 2008-06-23 ]
Washington, United States, 23 June – The International Monetary Fund (IMF) said Friday in Washington (IMF) that it would provide Sao Tome and Principe with US$680,000, which will deplete the funding available under the terms of the current bilateral cooperation mechanism.
Validating the policies and actions of the government, the IMF said in a statement that it had approved the loan despite the authorities failing to meet some of the targets set out in the agreement from three years ago, such as the levels of primary tax deficit and net government credit and structural targets related to management of public finances.
According to Murilo Portugal, the Brazilian assistant director of the IMF, the archipelago’s economic performance has been “robust” and there has been “progress” in reducing fiscal and public debt imbalances.
He said however that “these favourable developments have been accompanied by a rise in inflation.” Um descontrolo das despesas e a falta de controlo efectivo da base monetária aumentaram a pressão sobre a inflação e depreciação cambial".
Amongst its recommendations, the IMF noted the “high priority” of reforms to the financial sector and improvement of the business climate.
With this new loan, the total granted by the IMF to the government’s 2005-2008 economic programme the IMF said.
This week the World Bank announced the concession of a US$6 million loan to Sao Tome and Principe to support government reforms over the next two years, including tax and oil sector reforms. (macauhub)
