Mixed progress in structural reforms, says IMF

The International Monetary Fund (IMF) said on Tuesday that The Gambia's economic performance in 2001 had been mixed, however significant progress was made in structural reforms. Positive developments, an IMF press statement said, included continued robust real growth, moderate inflation, the preparation of a comprehensive poverty reduction strategy and settlement of a property dispute. Progress was also made in implementing the HIPC Initiative completion point triggers, notably on education and health. There were however fiscal slippages that undermined earlier progress toward fiscal consolidation leading to a sizeable increase in the overall budget deficit, the IMF said. The statement was issued following the conclusion of consultations between the IMF Board of Directors and The Gambia in July. "The directors welcomed the steps taken to reverse the recent fiscal slippages and renewed commitment to press ahead with reforms aimed at achieving a durable improvement in fiscal performance," it said. "Directors urged the authorities to adhere strictly to their plans to strengthen fiscal performance in line with the revised targets of reducing the overall deficit to five percent of GDP in 2002 and to about two percent by 2005," the statement added. The IMF said The Gambia should aim at a sustained improvement in the institutional capacity of tax administration, including the customs administration, appoint an Auditor General, collaborate effectively with donors in improving and broadening public expenditure reviews and enact an anti-money laundering bill. "In the financial sector, the authorities took further steps to broaden and deepen the money market, with the introduction of longer maturity treasury bills and the book-entry system to facilitate the trading of treasury bills and other securities. As part of the effort to promote attractiveness of The Gambia as a regional entrepôrt and financial center, commercial banks were allowed to open foreign currency-denominated deposits for their customers," the IMF said. The National Assembly, it added, enacted legislation to encourage private sector activities, including the Privatization, Regulatory and Procurement Acts and cabinet approved a fast-track privatization programme for a number of public enterprises that do not require regulation. Detailed report