Democratic Republic of São Tomé and Príncipe: Request for an Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Democratic Republic of São Tomé and Príncipe

International Monetary Fund

No 2025/001, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper presents São Tomé and Príncipe’s Request for an Arrangement under the Extended Credit Facility (ECF). São Tomé and Príncipe is facing major macroeconomic challenges, including high fuel import needs, limited export potential, and low international reserves. The authorities' reform program aims to restore macroeconomic stability, while protecting the vulnerable and establishing a foundation for more rapid and inclusive growth. It encompasses urgent reforms in the electricity sector and medium-term structural adjustments to foster green energy and unleash the country’s growth potential. The authorities remain committed to maintaining debt sustainability, including through prudent borrowing practices and a focus on securing grant financing and concessional loans. The envisaged comprehensive reform of the energy sector and gradual shift towards renewable energy sources will help to reduce fuel imports, boost international reserves, and contain fiscal risks. The ECF arrangement is expected to catalyze additional external financing from development partners.

Keywords: tariff structure; staff appraisal; fuel price adjustment mechanism; electricity tariff; ECF arrangement; Arrears; Debt sustainability; Imports; Global; West Africa; Europe (search for similar items in EconPapers)
Pages: 114
Date: 2025-01-03
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