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By Matthew Russell Lee, CJR PFT NY Post

NEW YORK CITY, February 6 – After US Secretary of State Mike Pompeo met Jordan's Foreign Minister Ayman Safadi on February 6, Pompeo's deputy spokesperson Robert Palladino issued a read out: "During the meeting, Secretary Pompeo and Foreign Minister Safadi discussed several issues of mutual interest, including recent progress in the campaign to defeat ISIS, developments in Syria, and King Abdullah’s recently concluded visit to Baghdad." We'll have more on this - and on the International Monetary Fund, which issued a statement about Jordan on January 10 about Christine Lagarde's meeting earlier in the day: "Christine Lagarde, Managing Director of the International Monetary Fund (IMF), met with Omar Al-Razzaz, Prime Minister of Jordan today in Washington. At the conclusion of the meeting, the Managing Director issued the following statement:  “It was a pleasure to meet Prime Minister Al-Razzaz and his economic team at the IMF headquarters today.  “Mr. Al-Razzaz and I had a very productive meeting. We discussed global, regional, and domestic economic developments. The Prime Minister informed me about the extensive national dialogue that led to the adoption of a new income tax law, which is a welcome step in the right direction. We agreed that Jordan still faces challenging economic and social conditions, as reflected by weak economic growth and high unemployment--particularly for youth and women--along with elevated public debt and large financing needs. Sustaining fiscal consolidation remains critical to preserve macroeconomic stability, which needs to be supported by a faster implementation of reforms to promote jobs and investment and lower business costs.  “With Jordan still facing difficult regional conditions, including hosting a large number of refugees, international donor support is more important than ever to help it preserve economic and social stability. Our teams remain in close consultation on how best to advance policies to unlock much needed concessional financing and budget grants, ahead of next month’s London Initiative 2019.  “The IMF remains committed to supporting the Jordanian authorities’ economic program. An IMF mission will visit Jordan soon." We'll continue on this. Back on 21 December 2019, the IMF issued a statement on Chad, to disburse $49 million, without a word on the $2 million from the China Energy Fund Committee documented in the recent US v Patrick Ho trial in the US District Court for the Southern District of New York. The IMF statement went like this: "On December 21, 2018, the Executive Board of the International Monetary Fund (IMF) completed the third review of Chad’s economic and financial program supported by an Extended Credit Facility (ECF) arrangement. The completion of the review enables the disbursement of SDR 35.05 million (about US$48.6 million), bringing total disbursements under the arrangement to SDR 140.2 million (about US$194.5 million).

The Executive Board also approved the authorities’ request for a waiver of the nonobservance of the continuous performance criterion on the accumulation of new external payment arrears by the government and nonfinancial public enterprises.

Chad’s ECF arrangement was originally approved by the Executive Board on June 30, 2017 (see Press Release No. 17/257) for SDR 224.32 million (about US$ 312.1 million or 160 percent of Chad’s quota). The ECF-supported program aims to help Chad restore macroeconomic stability, lay the foundation for robust and inclusive growth, and contribute to the regional effort to restore and preserve external stability for the Central African Economic and Monetary Union (CEMAC).

Following the Executive Board discussion, Mr. Tao Zhang, Deputy Managing Director and Acting Chair, made the following statement:

“Performance under the ECF-supported program has been satisfactory, reflecting strong commitment by the authorities. Decisive implementation of the authorities’ program will help strengthen macroeconomic stability and support diversified and inclusive growth. Progress is underway on the structural reform agenda, despite some delays.

“Moving forward, the authorities are determined to continue their efforts to further stabilize the fiscal position, energize non-oil growth, and reduce banking sector vulnerabilities. Key policies in this regard include maintaining control over the wage bill, increasing domestic revenue mobilization, and improving public financial management. This would help create sufficient space for increased spending in social sectors and public investment, and to pay down domestic debt and domestic arrears. Strengthening anti-corruption legislation and addressing weaknesses in some of the domestic banks are also key.

“Chad’s program is supported by the implementation of supportive policies and reforms by the regional institutions in the areas of foreign exchange regulations and monetary policy framework and to support an increase in regional net foreign assets, which are critical to the program’s success.”  What about those $2 million in cash in the China Energy Fund Committee's gift box?

For Gabon on December 19 it was $99 million, what some see as an unmerited holiday president for Ali Bongo. The IMF said, "On December 19, 2018, the Executive Board of the International Monetary Fund (IMF) completed the third review of Gabon’s economic program supported by an extended arrangement under the Extended Fund Facility [1]. Completion of the review enables the immediate disbursement of SDR 71.43 million (about US$99 million). This brings total disbursements under the arrangement so far to SDR 285.72 million (about US$395.9 million).

In completing the third review, the Executive Board approved the authorities’ requests for waivers of nonobservance of a performance criterion and modification of performance criteria.

Gabon’s three-year, SDR 464.4 million extended arrangement (about US$ 642 million at the time of approval), the equivalent of 215 percent of Gabon’s quota, was approved by the Executive Board on June 19, 2017 (see Press Release No. 17/233). The government’s reform program, supported by the IMF, aims to restore macroeconomic stability and lay the foundation for inclusive growth. It also seeks to attain debt sustainability at the national level and contribute to the external stability of the Central African Economic and Monetary Union (CEMAC).

Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement:

“Gabon’s performance under the EFF arrangement has improved. The authorities have taken important and difficult actions to keep the program on track despite the October 2018 legislative elections. However, the economic recovery remains fragile and further fiscal consolidation and decisive reforms are needed to achieve strong and sustainable growth.

“The authorities are committed to continuing with growth- friendly fiscal consolidation. This requires steadfast implementation of measures to boost non-oil revenues and contain non-priority spending, while protecting social and investment spending. Enhancing budgetary execution and oil revenue management, and further improving cash and debt management are also priorities.

“Safeguarding banking sector stability is essential for growth. The authorities plan to accelerate the liquidation of the three distressed banks and expeditiously tackle the NPL overhang to support financial stability, promote credit to the private sector, and growth.

“Gabon’s program continues to be supported by the implementation of supportive policies and reforms by the regional institutions in the areas of foreign exchange regulations and monetary policy framework and to support an increase in regional net foreign assets, which are critical to the program’s success.”"  When the IMF held its biweekly embargoed media briefing on November 15, Inner City Press asked four questions, two of which were answered, see below. The next day on November 16 the IMF issued this, about Gabon, without mentioning the health much less dictatorship of Ali Bongo: " The IMF team has reached staff-level agreement with the authorities on policies that could support Executive Board’s approval of the third review.

The economy is recovering, and important steps have been taken since the completion of the second review to keep the program on track.          
· The mission agreed with the authorities on policies and measures to pursue growth-friendly fiscal consolidation, preserve external stability and support inclusive growth. The authorities are committed to speed up reforms implementation.

An International Monetary Fund (IMF) mission led by Boileau Loko visited Libreville [1] during November 7–16 to conduct discussions on the third review of Gabon’s extended arrangement under the Extended Fund Facility (EFF). [2]

At the conclusion of the IMF mission, Mr. Loko issued the following statement:

“Economic activity is recovering, with growth estimated at about [1.2] percent in 2018 up from 0.5 percent in 2017, despite lower-than-expected oil production. Inflation increased to 3.4 percent (12-month average) in September 2018, reflecting higher food prices and the pass through of rising international oil prices. Fiscal performance at end-September was better than expected, thanks to higher than targeted non-oil revenue collection.

The recovery is expected to firm up in 2019 and the medium-term outlook is still promising, with GDP growth projected to reach 3.1 percent in 2019 and 5 percent in the medium term. Downside risks to the outlook include the failure to implement the planned fiscal consolidation, lower global growth and a marked tightening of global financial conditions.

Staff commended the authorities’ efforts to improve program implementation since the second review. Most end-September 2018 targets were met. Most program-supported structural reforms were implemented, albeit with some delays.

Fiscal consolidation remains a priority under the program. The mission took note of the authorities’ commitment to implement all critical measures in the 2018 supplementary budget to meet the end-year fiscal deficit target. Fiscal policy in 2019 aims at further enhancing non-oil revenue mobilization, containing the wage bill, and improving the composition of public spending to provide space for priority social and capital expenditure.

Improving budgetary execution, aligning expenditure commitments and cash flows plans, and fully operationalizing the Treasury Single Account will strengthen transparency, cash management, and budget monitoring. Continued efforts are also needed to enhance debt and cash management to prevent the accumulation of domestic and external arrears.

The mission highlighted the fiscal risks posed by public agencies. Despite some progress, the financial position of several public agencies and enterprises remains precarious, and unless improved, it could represent significant contingent liabilities for the government. The authorities have renewed their commitment to tighten controls on special accounts spending.

The mission underscored the need to speed up the liquidation of the three distressed banks and expeditiously tackle the NPL overhang to strengthen the banking sector and foster credit to the private sector. Further improving the business environment is also critical.

The mission welcomed the authorities’ commitment to implementing policies consistent with the stability of the region’s monetary arrangement. Continued fiscal consolidation and tangible actions to strengthen compliance with foreign exchange regulations, notably regarding the repatriation of export earnings, are critical to rebuild the BEAC’s foreign reserves.

The IMF Executive Board could consider the third review in December 2018.

The mission would like to thank the Gabonese authorities for the constructive discussions and warm hospitality.” In terms of lack of hospitality, the UN of Antonio Guterres has not responded to this Press question: "November 15-4: On Gabon, what is the SG's (and separately Mr Fall's / UNOCA's) comment and action on the move that many consider unconstitutional to continue to leave unresolved the health and governing status of Ali Bongo? What is the UN's understanding of if or when he would return? What is the SG's awareness and engagement, if any, in this?" The IMF to its credit at least answers questions.

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