This note looks specifically at how thegovernment used Public Finance Management (PFM) policies tohelp address the enormous short-term challenges of a fragilesituation in the aftermath of the 2006 crisis. Thegovernment capitalized on a rapid increase in oil revenuesand through administrative measures that delegated moreresponsibility for spending decisions to line ministries,achieved a rapid increase in the rate of public spending oncash transfers, goods and services and public works. Thisnote starts by summarizing the evolving challenges of thepost-independence PFM system, the fragility of 2006/07, andthe changed fiscal outlook following the surge in petroleumrevenue. It then looks at the government's PFM policiesthat helped it to address urgent demands and successfullyrestore short term stability. The note concludes by drawingpossible lessons from this period for other post-conflict situations.