The International Monetary Fund on Friday issued a $5.2 million line of credit to Senegal after approving a first review under a three-year loan program and urged it to step up electricity and groundnut sector reforms.
The IMF executive board also waived performance targets under the Poverty and Growth Facility agreed in April 2003 on contracting and guaranteeing of new non-concessional external debt and two economic criteria.
The IMF executive board also approved $1.6 million between February and April 2004 in additional interim assistance under a debt relief initiative for heavily indebted poor countries.
Agustin Carstens, deputy managing director for the IMF, said Senegal had managed its economy well in 2003 but there had been delays in reforms and weakness in debt management.
"Structural reforms are crucial to achieve high economic growth and reduce poverty," Carstens said in a statement.
He said improvements were needed in tax and customs administration and increased transparency in the expenditure process. The sale of the state-owned groundnut company Sonacos should be completed, Carstens added.