Washington, DC: The Management of the International Monetary Fund (IMF) approved on December 21, 2021 the completion of the first review of Comoros’ Staff Monitored program (SMP)[1].
Policies under the SMP, which wasapproved on July 21, 2021aim to (i) contain and recover from the pandemic; and (ii) start implementing reforms to overcome fragility, boost inclusive growth, and limit risks.
To tackle economic fragility, the government’s top priority is to raise fiscal revenue to support investment in human and physical capital and enhance debt sustainability. The authorities also aim to strengthen the quality of spending, public financial management, State-Owned Enterprises (SOE) oversight, and the financial sector.
To address institutional fragility, the authorities aim to enhance governance, including by strengthening public reporting on large public procurement projects with the inclusion of beneficial ownership information and creating an effective asset declaration framework for senior public officials.
The authorities made satisfactory progress on their reform program through end-September 2021. In particular, they succeeded in raising fiscal revenue and providing substantial cash transfers to the poor.
Timely implementation of the outstanding reforms envisaged under the program will be important for improving economic conditions and establishing a track record towards a potential ECF arrangement.
The IMF supports the government’s efforts through the provision of capacity development in coordination with international partners. It also supports the authorities’ efforts to mobilize external concessional financing.