The Union of the Comoros: Third Review under the Extended Credit Facility Arrangement and Request for Modifications of Performance Criteria and Waivers of Nonobservance of Performance Criteria -Press Release; Staff Report; and Statement by the Executive Director for The Union of the Comoros

This paper highlights the Union of the Comoros’ Third Review under the Extended Credit Facility (ECF) Arrangement and Requests for Modifications of Performance Criteria and Waivers of Nonobservance of Performance Criteria. Program performance remains broadly on track albeit uneven, amid a political transition and a more challenging external financing environment. While there is considerable progress toward the achievement of program objectives, significant and continued effort is required to maintain the reform momentum. The authorities have reaffirmed their commitment to the reform agenda under the ECF-supported program. Institutional and governance improvements remain critical as a foundation for economic activity and to enhance policy credibility for domestic and external stakeholders. Reforms such as the operationalization of the Anti-Corruption Chamber have advanced, with additional support required for capacity development and to boost public sector transparency. Economic conditions have remained stable despite inflationary pressures and signs of softening economic activity, and adherence to the ECF-supported program will safeguard macroeconomic stability and advance needed structural reforms while catalyzing additional financial support for the country’s large financing needs.