In early December the IMF published its first review of the extended credit facility (ECF) with Mauritania for 2010-12. The ECF, which is the Fund's financing mechanism for low-income countries, was approved in March 2010 and provides for SDR77.2m (US$118m) in funding (July 2010, Economic policy). In its Letter of Intent to the Fund, published together with the first ECF review, the government requested a disbursement of SDR11m, which is expected to be forthcoming. The IMF gave a positive assessment of the local authorities' performance to date under the instrument. All the quantitative performance criteria had been met except for that relating to poverty-reducing expenditure, owing to delays in executing investment spending.

The review also noted the government's strong progress in advancing structural reforms. These focus primarily on improving the soundness of the country's banks, with a view to increasing the level of financial intermediation in the country from currently low levels in order to stimulate private-sector activity and economic diversification. To this end the government aims to raise banks' minimum capital requirements by the end of 2011 and to ensure by the end of 2010 that all banks are independently audited. The government also intends to tighten requirements relating to solvency, liquidity, risk-concentration and non-performing loans.