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Comoros is involved in a pathway important economic and institutional changes, notably – and beyond the three-year agreement the Extended Credit Facility (ECF) signed with International Monetary Fund (IMF), the accession to the HIPC Initiative, the implementation of their program the fight against poverty (economic) and amendments to the Constitution that the open way to streamline the Comoran political system (institutional) and recent elections democratic.
• HIPC Initiative. Comoros have reached the decision point under the HIPC Initiative in June 2010. External public debt Comoros contracted and guaranteed by the state was estimated value Nominal USD 287 million (including arrears) at the end of December 2009 (Table 2). for reduce the ratio of the present value (PV) of debt / exports 150%, the country’s debt to HIPC initiative should be reduced to a total of USD 145 million in VA, a common reduction factor of 56%. Once the completion point of the HIPC initiative reached (scheduled for December 20128), Comoros will also benefit from relief additional external debt under Relief Initiative Multilateral Debt (MDRI) which, according to the latest estimates, is expected to reduce the debt service from the International Development Association (IDA) and the African Development Bank Development Bank (ADB) of approximately $ 52.2 million in VA:
- Nominal VA (In millions of USD 286.8 257.4 )
- Ratio of debt / GDP (percent) 53.6 48.1
- Ratio of debt / exports (in percent) 382.2 343.0
- Ratio of debt / revenue (in percent) 1 / 384.7 345.3
However, challenges remain and debt despite full payment of debt relief under the HIPC Initiative and the MDRI. According to the latest analysis of debt sustainability (DSA) performed, Comoros remain indebted for the most of the projection period to 2030 (see Figure 1). External debt Comoros was also continued to be sensitive to shocks extérieurs. Therefore, maintaining viable medium-term debt levels also requires the strict application conducive to growth economic policies, focusing in part on the remediation of public finances, as well as policy and prudent debt management..
Source: (DeMPA) Report