Staff Guidance Note on The Implementation of The IMF Strategy for Fragile and Conflict-Affected States (FCS)

This note provides operational advice and information to help staff implement the IMF Strategy for Fragile Conflict-Affected States (FCS) approved by Executive Board on March 9, 2022. Topics covered include (i) new FCS classification methodology, which is aligned with that of World Bank; (ii) preparation Country Engagement Strategies (CES) will be rolled out across ensure Fund engagement appropriately tailored country-specific manifestations fragility and/or conflict; (iii) tailoring thematic focus Article IV consultations analytics FCS, as well prioritization, design, implementation capacity development (CD) projects in fragile contexts; (iv) guidance making full use flexibilities lending toolkit; (v) engaging specific situations, including building accountable institutions exit fragility, cases rising risks, active conflict, post-conflict, addressing impact external shocks spillovers; strengthening partnerships humanitarian, development, peace actors, accordance Fund’s mandate. Dedicated annexes provide additional CES process, good governance program country examples FCS.