Republic of São Tomé and Príncipe

This paper presents Democratic Republic of São Tomé and Príncipe’s Second Review under the Extended Credit Facility Arrangement, Requests for Waivers of Nonobservance of Performance Criteria, Modification of Performance Criteria, Extension and Augmentation of the Arrangement, and Financing Assurances Review. São Tomé and Príncipe’s structural challenges—remoteness, small size, climate risk exposure, weak institutions, narrow exports, and labor losses from emigration—hinder job-rich, inclusive, and blue growth. The authorities are committed to vigorously implementing their domestic revenue mobilization strategy to underpin fiscal consolidation. Risks to program implementation —including prolonged power outages, policy slippages in the run-up to next year’s elections, commodity price volatility, and climate-related events—are manageable, backed by the government’s strong commitment to engagement with the IMF. On the structural side, out of a total of fifteen structural benchmarks assessed, five were met, three were converted into prior actions, and one was implemented with a delay.