DAKAR - The International Monetary Fund (IMF) has approved a $86.9 million extended fund facility for Mauritania, it said in a statement on Wednesday.

The Executive Board decision enables an immediate disbursement of $21.7 millions, the statement said.

The remaining amount will be phased out over the 42-month arrangement under the extended credit facility.

The West African country's economy is on a "recovery path" due to its "determined response" to the coronavirus pandemic and international financial support, the statement said.

But the war in Ukraine and regional tensions have reverted the accumulation of foreign exchange reserves observed last year and narrowed the space for policy intervention, it added.

Economic growth in Mauritania is expected to reach 5.3% in 2022 and inflation is set to stabilize at around 11% following recent monetary policy tightening.

(Reporting by Sofia Christensen; Editing by Sandra Maler)