Press Release No. 09/462

Press Release: IMF Completes Second Review Under Senegal’s ESF Arrangement, Approves US$51 Million Disbursement and Completes Fourth Review of PSI

December 16, 2009

The Executive Board of the International Monetary Fund (IMF) completed the second review of Senegal’s performance under an economic program supported by an Exogenous Shock Facility (ESF) arrangement. The approval enables Senegal to draw an amount equivalent to SDR 32.36 million (about US$51 million), bringing total disbursements under the ESF arrangement to SDR 88.99 million (about US$141 million). The Board's decision was taken on a lapse of time basis.¹

The ESF for Senegal was approved on December 19, 2008 (see Press Release No. 08/334) to help finance the balance-of-payments impact of higher food and energy prices. On June 19 2009, the Executive Board approved a financial increase under the ESF by SDR 72.81 million (about US$115 million) to SDR 121.35 million (about US$192 million) and an extension from 12 to 18 months to help finance the balance-of-payments impact of the global economic crisis (See Press Release No. 09/223).

The Board has also completed the fourth review under the Policy Support Instrument (PSI). The three-year PSI for Senegal was approved on November 2, 2007 (see Press Release No. 07/246) to support the country's economic reform efforts. It is aimed at consolidating macroeconomic stability, increasing the country's growth potential, and reducing poverty.

The program focuses on maintaining a sound fiscal policy stance and enhancing fiscal governance and transparency. It also includes structural measures to support the private sector and increase the financial sector's contribution to growth.

¹ The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions. The Board’s decision will become effective on December 22, 2009.