Washington, Nov. 6, 2025 (Lusa) - The International Monetary Fund (IMF) has approved the second review of Sao Tome and Principe's financial adjustment programme, allowing for the disbursement of $2.8 million, subject to validation by the Fund's management.

"IMF staff and the Sao Tome authorities have reached agreement at the technical level on the second review of the economic policies underlying the 40-month programme supported by the Extended Credit Facility (ECF)," reads a statement from the Fund, which points out that "most of the quantitative targets for the second review have been met and significant progress has been made on several macro-structural issues."

With the agreement, Sao Tome and Principe will receive $2.8 million, around €2.4 million, bringing the total already granted to $13.4 million (€11.6 million), out of the total of $25 million (€21.6 million) included in the 40-month programme signed at the end of December last year.

The authorities have made progress in preserving macroeconomic stability, despite the ongoing energy crisis, and are committed to improving the fiscal situation and moving forward with the government's reform agenda," says the IMF.

The financial institution says that despite a downward revision of economic growth and an acceleration of inflation, "growth is expected to accelerate and inflation to decelerate gradually over the medium term".

At the end of the visit that ran from the end of October until Wednesday, the head of mission for the archipelago, Slavi Slavov, said that "growth should accelerate to 3.9% in 2026 and stabilise at around 3.3% in the medium term, reflecting the resilience of the agricultural sector and tourism, as well as a recovery in remittances and public investment," he said, quoted in the statement.

Reform of the energy sector remains essential to unlock growth and alleviate pressures on public debt and foreign exchange reserves, the Fund also warned.

MBA/ADB // ADB.

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