Economic Recovery Support Program - Subprograms 1 and 2

Policy-based loans should ensure adequate support for reform implementation. Accompanying TA would help clients meet key program targets, such as implementation of the IGF and medium-term budgeting. Policy-based loan design should ensure that TA findings are translated into actions. With the MFEM’s preference for policy-based lending, loan design should ensure strong links between TA and the program being supported. Given (i) the limited implementation capacity of the government, (ii) the approval of a policy-based loan supporting Cook Islands’ Disaster Resilience Program, and (iii) the MFEM’s preference for policy-based lending, further capacity support is needed.