Washington, DC: On September 29, 2021, the Management of the International Monetary Fund (IMF) approved aStaff-Monitored Program(SMP) for Comoros for the period July – December 2021.[1]
Comoros has been significantly affected by the COVID-19 pandemic. The number of recorded casualties has remained comparatively low, but the pandemic has nevertheless disrupted economic activity and depressed growth.
The authorities’ top priority since the pandemic hit has been to limit the impact on the health of the population and preserve macroeconomic and financial stability. This required financial support from the international community, including emergency financing under theRapid Credit Facility (RCF)andRapid Financing Instrument(RFI)approved in April 2020. Comoros’ participation in the debt service relief approved under theCatastrophe Containment and Relief Trustand theG20 Debt Service Suspension Initiativehas provided additional resources to fight the pandemic and preserve debt sustainability.
The authorities are providing substantial fiscal support to the economy in 2021. Spending includes, among other things, substantial cash transfers to the poor, financed in part through theIMF’s allocation of Special Drawing Rights(SDRs).
Comoros now has a window of opportunity to recover robustly from the pandemic while at the same time improving prospects for reaching higher and more inclusive growth over the medium term, all while preserving debt sustainability. The SMP aims to help the authorities establish a track record of policy implementation to pave the way to a potential arrangement under the Extended Credit Facility.
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[1]SMPs are informal agreements between country national authorities and IMF staff to monitor the authorities’ economic program. As such, they do not entail endorsement by the IMF Executive Board (with the exception of SMPs under theHeavily Indebted Poor Countries(HIPC) process). SMP staff reports are issued to the Board for information.