On behalf of our Cabo Verdean authorities, we thank the staff team lead by Mr. Segura-Ubiergo for the comprehensive and insightful report. The authorities are also very appreciative of staff’s dedication and tireless efforts during these challenging times through both virtual and in-person interactions. The mission conducted in the country’s capital, Praia, contributed to building an even closer and more constructive policy dialogue, benefiting from the proximity to the reality on the ground and the additional availability of Government officials and other stakeholders.
Despite the well-recognized success of the Government in fighting the pandemic, the country remains vulnerable to external shocks. Global uncertainties associated with the pandemic and its scars, amplified by the effects of the war in Ukraine, particularly on food and fuel prices, are weighing on the risks to the outlook of Cabo Verde, a small and open economy that is highly dependent on tourism and imports.
Against this background, the authorities seek support of the Executive Board for approval of a three-year Extended Credit Facility (ECF) arrangement in the amount of SDR 45.03 million (190 percent of quota). This arrangement will be instrumental in helping preserve macroeconomic and financial stability, maintain debt sustainability, and support the steadfast implementation of the country’s structural reform agenda envisaged in the Government’s Sustainable Development Strategic Plan (PEDS 2022–2026). The authorities are grateful for the successful conclusion of the program discussions with staff and timely consideration by the Executive Board of the ECF program request.