Sections
DONATE
SUPPORT WWW.JOLLOFNEWS.COM
Account Login
IMF Impressed With The Gambia
Friday, 20 January 2012 16:14
(JollofNews) – Executive directors of the International Monetary Fund (IMF) have commended Gambian authorities for making progress in poverty
reduction and achieving strong growth and low inflation despite a difficult global environment. In a statement issued at the end of a consultative meeting in Banjul, the IMF directors said the Gambian economy has performed well in recent years, despite challenging global conditions.
The directors however observed that although the outlook for the economy is generally positive, there are a number of risks, particularly the high cost and rollover risks of domestic debt.
The IMF directors welcomed the improved fiscal performance of the Gambia and supported the government’s plans for additional fiscal consolidation in the period ahead. They agreed that further fiscal adjustment aimed at curbing domestic borrowing is appropriate.
Commenting on the recent plans announced in the last budget by Finance Minister Mamburay Njie, the IMF directors said: “Comprehensive tax reforms, including an early introduction of the VAT and additional steps to increase tax compliance, are essential to rebuild government revenues. In particular, strengthening revenue administration and phasing out fuel subsidies would bolster the credibility of the authorities’ fiscal plans for the medium term. Simplicity, broad coverage, and low tax rates would also help to improve the business environment.”
The directors agreed that the Gambia’s monetary policymaking should remain focused on safeguarding price stability. To this end, they encouraged the Central Bank of the Gambia to develop liquidity management instruments that would enhance the efficiency of the money market and reduce intermediation costs.
They also encouraged the Gambian authorities to maintain exchange rate flexibility, as well as the import coverage of international reserves.
With regard to the banking sector of the Gambia, the IMF directors observed that the banking system is well capitalised and liquid.
While noting a still elevated non-performing loans ratio and other vulnerabilities in the banking sector, the IMF directors welcomed the Ministry of Finance’s intention to reinforce their oversight of the financial sector.
The IMF directors also welcomed the Gambia’s new poverty reduction strategy, the Programme for Accelerated Growth and Employment (PAGE). They emphasised, however, that the financing strategy should safeguard debt sustainability.
“We agreed that greater private sector participation in infrastructure projects could help achieve PAGE objectives, but success hinges on effective policy frameworks and institutions,” they said.
Written by PK Jarju
Jollofnews Poll
Who do you think should be the next President of The Gambia?
Follow us on Twitter
-
Amlin Cup despair for WilkinsonJonny Wilkinson's Toulon taste Amlin Challenge Cup final defeat for the second time in three...
-
Ex-PM, Islamist give Egyptians stark election choiceCAIRO (Reuters) - One is a former military man proud of his links to the...
-
Gambia Reach Finals To Make History(FIFA) – Gambia have won their way through to the FIFA U-17 Women’s World Cup...
Comments
Your knowhow is manufacturing yet,you cannot understand What Badara said?How come you know manufacturing and don’t understand SMEs or what function and impact it has on GDP and availability of domestic capital??.If you can still read, please paste and read this article.
http://www.sesric.org/files/article/157.pdf
It might give you help of "knowhow”in case you want to be in management level and educate poor Mambury njie (no offence to him,competency is what matters)about the concerns Badara is emphasising. Knowledge is wisdom N will only help you know your country and life better to wish better for your countrymen the life U enjoy in the USA. Is not that what U want?So read it and get enlighten of your Knowhow Plzz.
Badara, made a good comment but,my team is the best team, yet we can work with you, if you answer to our Diaspora call, you're welcome, join the history making.
All the prime western shareholders of the IMF..are grossly indebted nations... owing trillions of dollars.
The never never lands of bankrupt economics and citizen despair...is trading only on the assets of a future generation.
Africa can join Brazil to prosperity if has the mind and the discipline to do so.
But as Prince Sankanu said...Gambia must become a manufacturing nation.
The Gambia's PAGE policy...is such a template for reconstruction/economic expansion.
Be the way,what happened to vision 2020 ? It seems to have changed to vision 2017...!
Good comments Badara...but the Radiokangkangs have tinted glasses and can't see the REAL picture...
RSS feed for comments to this post.