Gambia News : IMF applauds Gambia's growth, urges debt strategy

Jun 04,2008 00:00 by lamin

The International Monetary Fund praised Gambia's economic development on Tuesday but urged the country to speed up preparation of a national debt strategy to help it avoid falling back into debt distress.

"Real GDP growth has been strong at over 6 percent a year, a performance that compares favorably with the record of other countries in the region," the IMF said in a statement following its meetings with officials from the small West African country.

"A relatively tight monetary policy stance and appreciation of the dalasi have helped contain the impact of rising world food and oil prices on inflation," the IMF noted.

The Fund said it welcomed the government's intention to use savings from debt relief for poverty-reduction efforts and to pay down down, but said the country had been slower than expected in implementing some structural reforms.

In March, the IMF and World Bank said Gambia had met requirements to qualify for full debt relief, although it was still at high risk of debt distress.