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Mauritania obtains immediate disbursement of $47.4 million from the IMF

[ 1 USD = 39,70740 MRU ] The Executive Board of the International Monetary Fund (IMF) successfully concluded the 2024 Article IV consultations with Mauritania, while finalizing the third reviews of the Extended Credit Facility (ECF) and Extended Credit Facility (ECFM) over a period of 42 months, as well as the second review of the Resilience and Sustainability Facility (RSF). These agreements, previously approved between January and December 2023, allow for an immediate disbursement of 36.16 million SDR, or approximately $47.4 million, contributing to a cumulative total of 89.7 million SDR, equivalent to 117.7 million dollars.

The Mauritanian economy continues to show notable resilience, despite growth expected to slow to 4.6% in 2024, mainly due to a contraction in the extractive sectors. However, growth projections remain positive in the medium term, thanks to increased revenue mobilization and reforms undertaken to strengthen governance and the business climate. These initiatives are expected to foster private sector-led growth and facilitate investments in infrastructure and priority social sectors.

Washington, DC: The Council's discussions on Mauritania highlighted the Government's continued efforts to maintain sound macroeconomic management, despite the challenges posed by regional instability and extreme weather events. The Central Bank of Mauritania adjusted the interest rate corridor and took measures to reduce excess liquidity, thus aiming to maintain price stability and promote the development of interbank markets.

The Board also emphasized the importance of continuing to strengthen macroeconomic policy frameworks and undertaking significant structural reforms to ensure sustainable and inclusive growth. It is crucial to continue reforms aimed at strengthening governance, improving the efficiency of public investments, and increasing exchange rate flexibility. Furthermore, efforts to improve the framework for combating money laundering and terrorist financing remain essential.

In conclusion, the Board commended Mauritania for its rigorous management and prudent policies that have supported the strong program performance. Directors encouraged more ambitious domestic revenue mobilization and streamlining tax exemptions to support investments and spending needed to improve social welfare while ensuring debt sustainability. They also called for continuous improvement of data for better decision-making and effective communication.

World

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