Gambia Sovereign Debt

In 2019, the ALSF provided capacity building assistance to the Republic of The Gambia within the framework of its negotiations with its creditors. The capacity building activities specifically consisted of: (i) assisting the Government to identify debt relief solutions and to develop and implement a negotiation strategy with respect to its creditors; (ii) developing and assisting with the implementation of a restructuring plan and a media strategy in respect of The Gambia’s debt relief efforts; and (iii) providing in-person capacity building training to the members of The Gambia’s debt management unit, synthesising the key takeaways from the project and providing a baseline understanding of sovereign debt management from both legal and financial perspectives. As a result of this project, the Government succeeded in obtaining financing assurances from the vast majority of its creditors who agreed to restructure their claims. As of 31 December 2019, 70.1% of all participating creditors had either produced new debt schedules or agreed on a detailed loan-by-loan treatment of their Gambian debt profile. This achievement was an essential precondition to the Gambia’s ability to receive an extended credit facility (ECF) from the International Monetary Fund. The ECF is a key element for the country to be able to unlock a significant amount of concessional financing from international finance institutions which will ultimately assist the country in its effort to obtain debt sustainability and reach its developmental goals.