Following a mission to Cabo Verde, the International Monetary Fund announced staff-level agreements with the authorities on the eighth review of the Extended Credit Facility and the fourth review of the Resilience and Sustainability Facility. Subject to Executive Board approval, completion of the reviews would allow a disbursement of SDR 2.37 million under the ECF and up to SDR 5.276 million under the RSF, with the RSF amount depending on reform progress. The IMF assessed performance under the ECF as strong, with all end-December 2025 quantitative and continuous performance criteria met and structural benchmarks broadly on track, except for delays in publishing audited statements for all state-owned enterprises. Under the RSF, reforms advanced on the unique social registry, a climate architecture for banks, and cost-reflective tariff frameworks for the electricity and water sectors, although more slowly than envisaged because of capacity constraints and reform complexity. The mission cited 2025 real GDP growth of 6.3 percent, average inflation of 2.3 percent, a primary fiscal balance of 3.1 percent of GDP, a current account surplus of 3.7 percent of GDP, and gross international reserves of EUR 1,070 million, equal to 7.6 months of prospective imports. The IMF said the near-term outlook remains stable, with growth projected at around 4.7 percent, but risks are tilted to the downside from higher energy and food import prices and from weaker tourism inflows or remittances if external demand deteriorates. It called for temporary energy price support measures, a cautious 2027 budget consistent with the debt reduction path under the ECF, and continued reforms in state-owned enterprises, public financial management, central bank operations, and climate resilience.
International Monetary Fund 2026-05-08
International Monetary Fund reaches staff-level agreement with Cabo Verde on ECF and RSF reviews with potential SDR 2.37 million and up to SDR 5.276 million disbursements
The International Monetary Fund reached staff-level agreements with Cabo Verde on the eighth review of the Extended Credit Facility and the fourth review of the Resilience and Sustainability Facility, which, subject to Executive Board approval, would allow disbursements of SDR 2.37 million and up to SDR 5.276 million. IMF staff assessed performance under the Extended Credit Facility as strong and noted progress under the Resilience and Sustainability Facility, while highlighting delays in audited state-owned enterprise statements and slower climate-related reforms. The Fund described the near-term outlook as stable but with downside risks, and recommended temporary energy price support, a cautious 2027 budget aligned with debt reduction, and continued reforms in state-owned enterprises, public financial management, central bank operations and climate resilience.