Cabo Verde: Sixth Review Under the Extended Credit Facility Arrangement, Request for Extension and Augmentation of the Arrangement, Request for Extension of the Arrangement Under the Resilience and Sustainability Facility, Rephasing of Availability Da

This paper presents Cabo Verde’s Sixth Review under the Extended Credit Facility (ECF) Arrangement, Request for Extension and Augmentation of the Arrangement, Request for Extension of the Arrangement under the Resilience and Sustainability Facility (RSF), Rephasing of Availability Dates, and Modification of a Reform Measure. The IMF Executive Board completed the sixth review under the ECF arrangement and approved a fifteen-month extension and an augmentation equivalent to thirty-percent of quota under the ECF arrangement. The Executive Board also approved a fifteen-month extension of the RSF arrangement and the rephasing of availability dates under the RSF arrangement. The ECF arrangement aims to strengthen public finances, ensure debt sustainability, minimize fiscal risks from public enterprises, modernize monetary policy, and raise potential growth. The RSF arrangement aims to support the government’s climate reforms and catalyze private climate finance. All end-December 2024 quantitative performance criterias, continuous PCs, and structural benchmarks under the ECF arrangement were met. The indicative target on social spending at end-December 2024 was not met, albeit by a small margin. Implementation of reform measures under the RSF arrangement has been slower than expected, reflecting the complexity and interconnectedness of the reforms and capacity constraints.