IMF plans more talks with Gabon in coming weeks

Business Recorder reported that the International Monetary Fund plans further technical talks with Gabon over its public finances and debt position, a step that could open the way to a new lending programme. The Fund made the announcement on Saturday, and the oil producer has increased its contact with the IMF and the World Bank as it tries to tighten budget management and raise money for infrastructure.

Gabon formally applied for an IMF programme in March. A month later it committed to an audit of several years of public borrowing, which the Fund described as a meaningful move toward shaping the programme's design. Earlier this month, authorities reported that the review showed the overall debt load was smaller than had been assumed, which strengthens the country's prospects of obtaining the programme and the financing attached to it.

In the Fund's statement after its mission visit, the body said discussions on fiscal and debt matters and the outlook would proceed over the next few weeks with the aim of starting programme talks. The mission also reviewed the authorities' planned overhaul of structural reforms aimed at better handling of public money. Under the draft 2027 budget, the government expects to borrow 1.144 trillion CFA francs ($2.00 billion) from international markets next year, while debt servicing and repayments are set to climb steeply.