IMF Board completes fourth reviews under ECF and EFF for Ivory Coast

On December 12, 2018, the Executive Board of the International Monetary Fund (IMF) completed the fourth reviews under the Extended Credit Facility (ECF) and Extended Arrangement under the Extended Fund Facility (EFF) for the Republic of Côte d’Ivoire.

The budget deficit is projected to converge to the WAEMU regional norm of 3 per cent of GDP in 2019; the program aims to achieve a sustainable balance of payments position, enhance domestic revenue mobilization, ensure debt sustainability, and foster inclusive growth and poverty reduction.

On December 12, 2018, the Executive Board of the International Monetary Fund (IMF) completed the fourth reviews under the Extended Credit Facility (ECF)  and Extended Arrangement under the Extended Fund Facility (EFF) for the Republic of Côte d’Ivoire. Completion of the reviews enables the immediate disbursement of SDR 96.786 million (about US$133.7 million).

The three-year ECF/EFF arrangements with a total access of SDR 650.4 million (about US$898.4 million or 100 per cent of Côte d’Ivoire’s quota) were approved by the IMF Executive Board on December 12, 2016.

Following the Executive Board discussion, Mr Furusawa, Acting Chair and Deputy Managing Director, made the following statement:

“Côte d’Ivoire is implementing a program of macroeconomic policies and structural reforms to sustain strong growth, ensure macroeconomic stability, reduce poverty and promote inclusiveness. The performance under this IMF-supported program has been satisfactory, especially on meeting the agreed quantitative performance criteria. Progress has also been made with regards to structural benchmarks, although more remains to be accomplished going forward. With the determined implementation of sound economic policies and structural reforms, the medium-term growth outlook can be expected to remain robust.

“On the fiscal front, the budget deficit target for 2018 is within reach, and the authorities have reiterated their commitment to meet the regional WAEMU deficit norm of 3 per cent of GDP in 2019. Achieving these goals will require additional revenue-enhancing measures and spending restraint while protecting pro-poor outlays. On the financing side, the authorities’ new debt management strategy envisages an even mix of domestic and foreign currency sources. In that context, a prudent borrowing policy, which carefully assesses the cost and benefits of new loans, is required to keep Côte d’Ivoire’s debt on a sustainable path. Strengthening public financial and debt management remains critical to maintaining debt sustainability.

“On the structural front, the authorities intend to persevere with reforms to enhance revenue administration and public financial management, improve the business climate, promote inclusive growth and consolidate banking sector stability. They also intend to enhance Côte d’Ivoire’s statistical system to better inform policy decisions.”

(With Inputs from APO)