The International Monetary Fund’s Executive Board has completed the fifth review of the Union of the Comoros’ programme under the Extended Credit Facility (ECF) and concluded the country’s 2025 Article IV consultation, approving an immediate disbursement of US$4.9 million to support economic reforms and macroeconomic stability.
The disbursement corresponds to SDR 3.56 million and brings total IMF financing under the programme to about US$28.6 million, the Fund said in a statement on Tuesday. The four-year ECF arrangement, approved in June 2023, provides total access of SDR 32.04 million, equivalent to roughly US$43 million.
The IMF said programme performance had improved compared with the previous review and remains broadly on track despite a series of mid-year disruptions that slowed reform implementation. The authorities have reaffirmed their commitment to the IMF-supported agenda and pledged stronger programme ownership going forward.
The Executive Board approved waivers for the non-observance of two quantitative performance criteria, including the domestic primary balance target at end-June 2025 and the continuous criterion on the non-accumulation of external arrears, citing corrective actions taken by the authorities.
According to the IMF, three of five quantitative performance criteria were met at end-June 2025, while 13 of 15 structural benchmarks scheduled between June and December 2025 were achieved. The Fund said sustained reform implementation will be required through the end of the programme in 2027 to preserve momentum.
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Economic conditions in the Indian Ocean archipelago remain broadly stable, supported by adequate external buffers and continued engagement with development partners. Growth is estimated at 3.8 percent in 2025 and is projected to rise to 4.1 percent in 2026, driven by public investment and a gradual recovery in domestic credit.
Inflation has eased sharply, falling to 1.9 percent year-on-year in October 2025 from a peak of 7.3 percent in March, reflecting lower import prices and improved domestic supply conditions. Average inflation for 2025 has been revised down to 3.5 percent.
Fiscal consolidation weakened in the first half of 2025 due to unplanned transfer spending, the IMF said, but authorities have adopted a package of corrective measures aimed at restoring consolidation in the final quarter of the year and into 2026. These include tax policy actions designed to strengthen revenue mobilisation.
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The external position remains stable, with the current account deficit estimated at around 3.0% of gross domestic product. International reserves are projected to cover more than eight months of imports in 2025 and remain adequate over the medium term.
The IMF said Comoros’ ECF-supported reform programme aims to reduce economic fragility and boost resilience by building fiscal buffers, lowering debt vulnerabilities, strengthening the financial sector and improving governance.
Key priorities include reforms to tax and customs administration, streamlining tax exemptions, restructuring the state-owned postal bank SNPSF, and enhancing banking supervision and resolution capacity at the central bank. Governance reforms, including public financial management and anti-corruption measures, also remain central to the programme.
Speaking after the Board discussion, IMF Deputy Managing Director Nigel Clarke said the economic recovery had gained momentum in 2025 amid gradual disinflation and stable external conditions, but warned that downside risks remain significant due to Comoros’ structural fragility and global uncertainty.
He said fiscal policy should remain focused on revenue-led consolidation to reduce debt vulnerabilities while creating space for priority spending, including social protection. Clarke also stressed the importance of strengthening financial sector supervision and governance reforms to support inclusive growth.
Executive Directors broadly endorsed the staff appraisal, urging the authorities to maintain prudent macroeconomic policies, accelerate reforms and strengthen institutional capacity. They also highlighted the need to improve social protection systems to address high poverty and food insecurity.
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The IMF said the next Article IV consultation with Comoros will be held in line with its standard consultation cycle for countries with Fund-supported programmes.
