MIL OSI Translation. Government of the Republic of France statements from French to English –
Source: IMF in French
March 8, 2024
End-of-mission press releases contain statements from IMF staff teams reporting their preliminary findings after their country visit. The views expressed in this statement are those of the staff of the IMF and do not necessarily correspond to those of the Executive Board of the IMF. The mission in question will not be the subject of deliberations within the board of directors.
IMF staff and the Mauritanian authorities agreed on the preliminary conclusion relating to the second reviews of the program supported by the Extended Credit Facility and the Extended Credit Facility, as well as on the first review under the Resilience and Resilience Facility. durability. In 2024, economic growth is expected to reach 4.3% compared to 3.4% in 2023, and the inflation rate has slowed sharply to reach 2.6% in February 2024 compared to 9% in February 2023. However, economic perceptions remain uncertain. Approval of the reviews by the IMF Executive Board would lead to the disbursement of approximately 21.3 million SDRs (approximately $[28.4] million), including 6.44 million SDRs (approximately $8.58 million of dollars) under the ECF and the MEDC and a first disbursement of 14.86 million SDR (approximately $19.79 million) under the FRD.
Nouakchott, Mauritania: A mission from the International Monetary Fund (IMF) led by Mr. Félix Fischer held meetings with the Mauritanian authorities in Nouakchott, from February 26 to March 7, 2024, focusing on the second reviews of the program supported by the expanded facility of credit (FEC) and the extended credit mechanism (MEDC), [1] as well as the first review of the program under the Resilience and Sustainability Facility (RSF). [2]
At the end of the mission, Mr. Fischer made the following statement:
“The IMF staff and the Mauritanian authorities concluded a prior agreement at the end of the mission relating to the second reviews of the economic program supported by the FEC and the MEDC and the first review of the program supported by the FRD. Subject to the approval of the General Management and the Executive Board of the IMF, Mauritania will benefit from 6.44 million SDRs (approximately 8.58 million dollars) under the ECF and the MEDC and an initial disbursement of 14.86 million SDR (approximately $19.79 million) under the FRD.
“In 2024, economic growth would reach 4.3% compared to 3.4% in 2023, driven by the performance of the non-extractive sector. Inflation slowed sharply to 2.6% in February 2024 compared to 9% in February 2023, due to the fall in the prices of raw material products and the tightening of monetary policy. At the end of 2023, the non-extractive primary budget balance, including grants, reached -5.3% of GDP (compared to -7.6% in 2022). Based on preliminary data, the current account deficit is expected to narrow to 9.8% of GDP in 2023 (compared to 16.7% at the end of 2022). International reserves have stabilized and are at an adequate level of $2.0 billion in 2023.
“Economic perceptions remain uncertain. An escalation of geopolitical tensions could affect Mauritania by causing new shocks to the terms of trade. In addition, more frequent climate disasters could deteriorate infrastructure, arable land and agricultural production, and create relatively high food insecurity. Delays in the start of operation of the Greater Tortue Ahmeyim Gas Project (GTA) as well as adverse price fluctuations in commodity markets could reduce budget revenues, increase external financing needs and worsen the debt profile medium term. On the positive side, the implementation of future phases of the GTA project or other major mining projects would improve economic growth and balance of payments.
“Based on preliminary data, the performance of IMF-supported programs under the ECF and MEDC arrangements is on track and its execution has been satisfactory. The majority of structural benchmarks were observed. Among other things, the guarantee fund for Small and Medium Enterprises (SMEs) and the tax policy unit are operational. The reform planned for the first review of the program under the FRD for the end of April 2024, which concerns the adoption of a decree to make monetary transfers for the benefit of vulnerable households permanent and the extension of the social safety net program in responses to droughts to include all affected poor households while guaranteeing its financing, is currently being implemented.
“The IMF team would like to thank the Mauritanian authorities and its other interlocutors for their warm welcome, constructive discussions and excellent cooperation. “.
[1] Approved by the IMF Executive Board on January 25, 2023 for an amount of 64.40 million SDR (approximately $86.9 million) (see Press Release No. 23/15).
[2] Approved by the IMF Executive Board on December 19, 2023 in the amount of 193.2 million SDR (approximately $258.21 million) (see Press Release No. 23/465)
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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.
