By Enyichukwu Enemanna
Gabon has formally requested a programme from the International Monetary Fund, a spokesperson for IMF announced on Wednesday, a move that could help stabilise the Central African nation’s finances and strengthen transparency.
The IMF on Friday concluded a 10-day visit to the 2.6 million population country, its first since the government said it wanted an IMF loan after downplaying the idea.
Investors and ratings agencies view an IMF programme as crucial. Concerns however lie on Gabon’s debt transparency and the government’s readiness to push through tough reforms.
A spokesperson for the fund said its team discussed the Gabonese government’s policy priorities and reform plans.
“Discussions highlighted the potential benefits of ongoing reforms, underscoring the criticality of ensuring prudent fiscal and financial policies to safeguard macroeconomic stability in Gabon and the region,” the spokesperson said.
“During the mission, the authorities made a formal request for an IMF arrangement. Discussions with the authorities will continue in the weeks ahead, including during the upcoming IMF Spring Meetings.”
Gabon’s push for an IMF loan, a compulsory step to unlocking investor cash and other international funding could help stabilise finances in the second-largest economy of the Central African Economic and Monetary Community (CEMAC), analysts say.
Ahead of the IMF visit, its finance ministry said turning to the Fund was “part of the government’s will to strengthen transparency, budget rigidity and sustainability of public finances.”
