The International Monetary Fund (IMF) and the São Toméan authorities have reached a staff-level agreement on the third review of São Tomé and Príncipe’s economic programme supported by the Extended Credit Facility (ECF), paving the way for a disbursement of approximately US$6.1 million to support the island nation’s economic reform efforts.
The agreement followed an IMF staff mission to São Tomé from March 26 to April 8, 2026, led by Mission Chief Mr. Slavi Slavov, and subsequent virtual discussions. It is subject to the completion of agreed prior actions and approval by the IMF Executive Board. The total IMF financial support disbursed under the current arrangement would consequently rise to approximately US$19.9 million upon completion of the review.
The ECF arrangement was originally approved by the IMF Executive Board on December 19, 2024, for a total amount of SDR 18.5 million around US$25 million covering a 52-month programme. The Board further approved a 12-month extension and augmentation of SDR 4.4 million in December 2025.
Mr. Slavov stated during the visit that the ongoing war in the Middle East and prolonged power outages pose severe risks to economic recovery.
“The global oil price shock resulting from the war in the Middle East and the prolonged power outages pose severe risks to economic recovery,” he stated.
The Mission Chief further warned that higher fuel costs and rising import prices for essential goods could reverse the inflation trend, with core inflation remaining elevated. He added that reforming the energy sector remains essential to overcoming the impact of global shocks, unlocking growth, and alleviating pressures on public debt and foreign exchange reserves.
The IMF Mission Chief added that most quantitative targets for the third review have been met, and significant progress has been made on a range of macro-structural issues.
“The Fund-supported programme continues to play a pivotal role in supporting macroeconomic stability, helping the country to confront external shocks, foster structural reforms, and catalyse support from other development partners,” he added.
The IMF team held meetings with President Carlos Vila Nova, Prime Minister Américo d’Oliveira dos Ramos, Minister of State for Economy and Finance Gareth Haddad do Espírito Santo Guadalupe, Central Bank Governor Agostinho Fernandes, and other senior government officials and private sector representatives during the mission.
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