THIRD STRENGTHENING GROWTH AND FISCAL POLICY DEVELOPMENT POLICY FINANCING

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The development objective of Third Strengthening Growth and Fiscal Policy Development Policy Financing Project for Sao Tome and Principe is to help the government introduce growth-enabling reforms in the financial sector, business environment, and infrastructure; generate fiscal resources and savings; and improve quality of expenditures. The operation is organized around two pillars as follows:1) Introduce growth-enabling reforms in the financial sector, business environment, and infrastructure; and 2) Generate fiscal resources and savings and improve the quality of expenditures. The operation aligns with the government´s objectives by supporting the second and third axis of the XVII government program. Specifically, the operation will support the government’s strategic policy objective of developing the financial sector by strengthening the Central Bank of São Tomé and Príncipe (BCSTP’s) supervision and intervention capacity. It also includes measures to develop the national payment system, the microfinance sector, and the property registry system, which will support bank credit expansion and increase access to finance. Reforms of public water and energy utilities also aim to leverage the development of infrastructure and improvement in the business environment.