Coronavirus: IMF approves US$114.49 million to Niger to address pandemic

15 Avril 2020

Washington, US, April 15 (Infosplusgabon) - The Executive Board of the International Monetary Fund (IMF) on Tuesday approved the disbursement of US$114.49 million to be drawn under the Rapid Credit Facility (RCF) to help Niger cope with the COVID-19 pandemic.

According to an IMF statement made available on Wednesday, the Board said the RCF funds will help address Niger’s urgent balance of payments need by filling important financing gaps in fiscal and external accounts and should also help to catalyse additional donor support.

The IMF continues to monitor Niger’s situation closely and stands ready to provide policy advice and further support as needed, according to the statement.

The Executive Board also approved a re-phasing of disbursements under the Extended Credit Facility (ECF) that has been supporting Niger’s economic reform programme since January 2017, to allow more time for the completion of the next programme review while maximising financial support under the RCF.

Following the Board’s discussion on Niger, IMF First Deputy Managing Director Geoffrey Okamoto remarked that the COVID-19 pandemic is having a pronounced negative economic impact on Niger and downside risks are significant.

“The economic downturn, fiscal pressures, and tightening financial conditions are giving rise to large financing gaps in Niger’s public finances and balance of payments this year,” Mr. Okamoto said.

He noted that Nigerien authorities have moved quickly to formulate and implement a three-pronged plan with measures to contain the pandemic and alleviate its social and economic fallout.

He said that the IMF’s financial assistance under the RCF covers an important part of the financing gap, thus supporting implementation of the anti-crisis plan. However, timely additional support from the international community is indispensable, he emphasised.

“A substantial widening of this year’s budget deficit is appropriate, reflecting unavoidable revenue shortfalls and pressing spending needs for health care, social protection, and support for hard-hit businesses,” Mr. Okamoto observed, pointing out that  Niger’s Ministry of Finance is comprehensively overseeing crisis measures, which should be as well-targeted and carefully assessed as possible.

“The government remains committed to its economic reform programme supported by an ongoing ECF arrangement with the IMF. It is centred on mobilising domestic revenues, improving public spending efficiency, and strengthening the private sector while preserving macroeconomic stability and sustainable public finances,” he added.

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FIN/INFOSPLUSGABON/AZR/2020

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