The Executive Board of the International Monetary Fund (IMF) today completed the sixth and final review under the three-year arrangement under the Extended Credit Facility (ECF) for the Union of the Comoros. The completion of the review enables the disbursement of an amount equivalent to SDR 1.55 million (about US$2.4 million). In completing the review, the Board approved a waiver for the nonobservance of the performance criterion on net credit to the government at end-June 2013.

The three-year Extended Credit Facility (ECF) arrangement for the Union of the Comoros was approved in September 2009, for the equivalent of SDR 13.5725 million (US$13.57 million, or 152.5 percent of quota, see Press Release No. 09/315).

Following the Executive Board’s discussion, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair issued the following statement:

“The authorities are to be commended for significant progress in implementing their Fund-supported adjustment program. As the financing arrangement under the Extended Credit Facility draws to a close, structural reforms have advanced and the main macroeconomic objectives have been achieved. Growth with low inflation has been sustained, and the fiscal position has strengthened. Looking ahead, it will be important to safeguard macroeconomic stability and further reduce poverty through prudent policies and continued reforms.

“Additional efforts are needed to strengthen cash management, budget preparation, and expenditure control as well as bolster domestic revenue mobilization. It will also be critical to preserve the gains from debt relief through continued reliance on concessional financing and improved debt management.

“Structural reforms of public utilities and further investment in infrastructure will help accelerate growth and poverty reduction. Plans to reform the energy sector and address other supply-side bottlenecks hold out the promise to improve the business environment and strengthen medium-term prospects.

“Going forward, strong policies remain crucial, and continued close engagement with the Fund will be important.”