IMF team travels to Sao Tome for Article IV Consultation

IMF travels to Article IV Consultation
IMF travels to Article IV Consultation

An International Monetary Fund (IMF) team, led by Maxwell Opoku-Afari, ended their visit to Sao Tome and Principe Thursday.

From March 9, the IMF participated in the 2016 Article IV Consultation and the first review of the Sao Tome and Principe economic program.

Sao Tome is supported by the IMF's three-year, extended credit facility, and the program has met its goals in the area of quantitative performance criteria for December 2015. Sao Tome was also able to make progress in the implementation of structure reforms.

Opoku-Afari believes that the macroeconomic outlook of the nation is positive since the GDP is expected to grow 5 percent this year and cocoa production and foreign direct investments in the tourism sector are expected to increase. There are still challenges, though, such as inflation remaining at 4 percent.

"However, elevated lending risks in an environment marked by rising non-performing loans and highly indebted households and businesses will continue to hold back private sector credit growth," Opoku-Afari said.

Moving forward, the mission will continue discussing policies with the appropriate authorities and the IMF Executive Board will look into the ECF review as well as a consultation in June.

Opoku-Afari gave his thanks for the reception.

"We are grateful to the authorities for the warm hospitality and for the very constructive discussions," he said.

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International Monetary Fund

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