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Comoros - Economic Reform and Financial Governance Support Programme (PAREGF) - Project Completion Report (PCR)
PAREGF was among the first Bank operations after the lifting of arrears sanction on the Union of Comoros in early 2009. The programme was designed and implemented concurrently with the Institutional Capacity Building Project (ICBP) financed by the Bank and an institutional support operation financed by the World Bank. The Bank also financed a complementary technical support during preparation of the Public Finance Management Reform Strategy (PFM) through the FSF. The project falls under the first pillar –macro-economic framework stabilization –of the Bank Group assistance strategy in the I-CSP 2009-2010. It is also consistent with the first pillar of I-PRSP 2006 - 2009: stabilize the economy and lay the foundations of equity-based accelerated and sustainable growth.DuringPAREGFdesign, the macro-economic situation was difficult, with low growth(0.5% in 2008 and 1% in 2009) and an increase in inflation (9.5% at end 2009) mainly as a result of the impacts of the world financial crisis and the political crisis Comoros had just experienced. In public finance, due to the political problems and economic slowdown, domestic revenues declined to 12.4% of GDP in 2008,leading to an increase in the budget deficit.