The International Monetary Fund said on Wednesday its executive board approved a $7 million disbursement to Gambia as it completed a third review of the country’s loan arrangement.

The payment brings total disbursements under the 39-month Extended Credit Facility arrangement approved last year to about $55.7 million, the IMF said.

The IMF said Gambia’s economy was showing signs of recovery but that a third pandemic wave in mid-2021 hampered a more vigorous rebound.

“In view of lingering vulnerabilities, maintaining exchange rate flexibility and adequate external buffers will be critical,” IMF Deputy Managing Director Bo Li said in a statement, noting Gambian authorities plan to spend part of an IMF distribution of monetary reserves, while saving the rest.

“Adherence to the external borrowing plan under the program and seeking grants and concessional financing will help secure debt sustainability,” the IMF official added.

(Reuters)