Union of the Comoros: 2025 Article IV Consultation and Fifth Review under the Extended Credit Facility Arrangement, and Request for Waivers of Nonobservance of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for the Union of the Comoros

This paper presents Union of the Comoros’ 2025 Article IV Consultation and Fifth Review under the Extended Credit Facility (ECF) Arrangement. Despite headwinds from energy shortages and declining prices for key export commodities, the recovery gained further momentum in 2025, underpinned by robust domestic demand. Program performance improved compared to the fourth review and remains broadly on track despite a series of mid-year events which diverted the authorities’ attention and affected the pace of reform implementation. The authorities have reaffirmed their commitment to the ECF-supported reform agenda and are determined to demonstrate stronger program ownership in the period ahead. Economic conditions remain broadly stable, supported by adequate external buffers and continued engagement under the ECF-supported program. Recent fiscal slippages have been addressed through the adoption of a comprehensive package of corrective measures. Continued implementation of the program is helping to safeguard macroeconomic stability, advance critical structural reforms, and catalyze concessional financing to meet Comoros’s sizable development and financing needs.