## cr17165

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### Context
- Legislative elections in December 2016 and adoption of a new constitution in the national referendum in October 2016 added more certainty to the political environment.
- Social tensions in early 2017: soldiers’ mutinies in January and May and a general strike of civil servants.
- Government agreed to pay overdue bonuses to soldiers of about 0.6 percent of GDP.
- Government agreed to meet civil servants’ demands for higher pension and social payments at the cost of about 0.1 percent in 2017 and 0.1 percent of GDP from 2018.
- Government did not recognize alleged wage arrears claimed by unions of about 1 percent of GDP; negotiations ongoing.

### Economic outlook and key macro indicators
- Real GDP growth:
  - Estimated about 8 percent in 2016.
  - Staff projects real GDP growth at around 7 percent per year in 2017–19.
  - Authorities project growth of 8½ percent in 2017.
- Inflation:
  - Averaged 0.7 percent in 2016.
  - Projections show inflation remaining subdued (e.g., 2.0 percent in later years in tables/figures; CPI projections include: 2016 Est.: 1.0; 2017 Prog.: 0.7; 2018 Prog.: 1.5; 2019 Proj.: 2.0; 2020 Proj.: 2.0).
- Current account:
  - Estimated current account deficit of 1.1 percent of GDP in 2016.
  - Projected to widen to 3.8 percent of GDP in 2017, narrowing to about 3 percent of GDP by 2019.
- Terms-of-trade shocks:
  - WEO price baseline for cocoa revised down by 30–35 percent for 2017 and beyond.
  - Cocoa accounts for about 1/3 of goods exports; price drop would lower merchandise exports by about 7 percent compared to baseline from 2017 onward.
  - Rising world oil prices since early 2016 have lowered the taxable base in the fuel sector.

### Fiscal stance, shocks, and 2017 arithmetic
- Fiscal impact of shocks and adjustments (percent of GDP, 2017):
  - Fiscal balance (original program): 3.7
  - External and domestic shocks: 2.3
    - Cocoa and fuel tax revenue losses: 1.6
    - One-off payments to soldiers: 0.6
  - Fiscal balance after shocks, before adjustments: 6.0
  - Adjustment measures: 1.5
  - Revised program deficit: 4.5
- Program measures to limit 2017 deficit to 4.5 percent of GDP:
  - Reduction of regulated cocoa producer price by 36.4–36½ percent (prior action from April 2017).
  - Reactivation of fuel price adjustment mechanism; gasoline price increased by 4 percent in May (and retail gasoline price reduced by about 4 percent in June 2017 matching May increase).
  - Curtailment of current expenditure by 0.2 percent of GDP and cut domestic capital outlays by 0.6 percent of GDP.
  - Fiscal adjustment measures of about 1½ percent of GDP in 2017.
- 2016 central government fiscal operations (Billions of CFA Francs; Prog. vs Prel.):
  - Total revenue and grants: 20.7 (Prog.), 19.8 (Prel.)
  - Total revenue: 19.1 (Prog.), 18.4 (Prel.)
  - Tax revenue: 16.7 (Prog.), 15.9 (Prel.)
  - Nontax revenue: 2.4 (Prog.), 2.5 (Prel.)
  - Grants: 1.7 (Prog.), 1.4 (Prel.)
  - Total expenditure: 24.7 (Prog.), 23.7 (Prel.)
  - Current expenditure: 17.3 (Prog.), 17.1 (Prel.)
  - Capital expenditure: 7.5 (Prog.), 6.7 (Prel.)
  - Domestically financed capital: 5.1 (Prog.), 5.0 (Prel.)
  - Foreign-financed capital: 2.3 (Prog.), 1.7 (Prel.)
  - Foreign loan-financed: 1.8 (Prog.), 1.2 (Prel.)
  - Overall balance: -4.0 (Prog.), -4.0 (Prel.)
  - Domestic arrears and float: -0.1 (Prog.), 0.4 (Prel.)
  - Overall balance (cash basis): -4.1 (Prog.), -3.6 (Prel.)

### Cocoa sector: production, prices, fiscal effects
- Production and role:
  - Côte d’Ivoire produces about 40 percent of world output; Ghana about 20 percent.
  - In 2016, 33 percent of beans harvested in Côte d’Ivoire were processed domestically.
  - Sector contributes directly and indirectly to 1/4 of employment.
- Recent price dynamics:
  - Cocoa prices plunged by more than 35 percent starting from the second half of 2016, to about 1300 CFAF/kg.
  - Favorable weather expected to increase yields in West Africa and Brazil.
- Taxes, regulator, and policy response:
  - Registration tax of 5 percent (until March 2017) set to zero from April 2017.
  - Export tax of 14.6 percent; CCC collects additional fees at 2.4 percent.
  - CCC farmgate price fixed at 60 percent of “reference export price” since 2012 reform.
- 2016–17 sectoral fiscal impacts and mitigation:
  - Sectoral losses in 2017 estimated at about 2 percent of GDP.
  - CCC drew about 0.9 percent of GDP from its stabilizing fund during 2016/17 harvest season.
  - From April 2017, farmgate price lowered by 36.4 percent; projected to lower farmers’ revenues by about 0.9 percent of GDP for the remainder of the year.
  - Tax cut and lower export tax reduce fiscal revenues in 2017 by an estimated 0.6 percent of GDP.

### Fiscal policy medium-term strategy and revenue measures
- Authorities’ commitments and measures:
  - Phase out VAT exemptions (new SB) and limit issuance of other specific tax exemptions.
  - Rationalize investment tax incentives and loopholes.
  - Raise excise rates on beverages (new SB) and adjust income tax.
  - Further improve tax administration.
- Revenue impact projections:
  - Boost tax revenue collection by about 0.4 percent of GDP in 2018.
  - Additional 0.5 percent of GDP in 2019.
- Contingency actions if pressures reemerge:
  - Accelerate revenue measures, broaden VAT base, raise other taxes.
  - Consider additional containment of the wage bill and reprioritization of capital outlays.
- Pro-poor spending:
  - Projected to drop by 0.6 percent of GDP in 2017 owing to decline in cocoa revenues and one-off payments to soldiers.
  - Government committed to increase pro-poor spending in 2018–20.
  - Pro-poor spending projected at 2070.1 billion CFAF (8.8 percent of GDP) in 2017 versus 2014.8 billion in 2016 (9.4 percent of GDP).

### Public Financial Management, PIM, and TSA
- PFM reforms and targets:
  - Finalized new program budgeting classification.
  - New medium-term expenditure framework outline for five pilot ministries for the 2017 budget presented to Parliament.
  - SIGFIP and ASTER interface roll-out by end-2017; full TSA deployment by end-2018.
- Public Investment Management (PIM):
  - Improve multi-year PIP elaboration; create procurement units in technical ministries by end-2017; move to paperless public tender procedures.
- Fiscal risk surveillance:
  - Performance contracts to be signed with managers of 7 public enterprises (including CI-Energies) by end-2017.
  - Public enterprises’ debt database includes debt stock for 19 enterprises and will include debt service for 12 of them by mid-2017.
  - Review all PPP conventions and put in place a PPP database (new SB); MTBF to include PPP risk analysis.

### Debt management, financing strategy, and Eurobond plans
- Regional monetary context:
  - BCEAO lending facility rate increased from 3.5 percent to 4.5 percent in December 2016.
  - Obligatory reserve requirements reduced from 5 percent to 3 percent in March 2017.
- Eurobond and liability management:
  - Plan to issue a long-term US dollar bond and a medium-term euro bond; part of proceeds to buy back external debt maturing in 2024 and 2032.
  - In June, Côte d’Ivoire issued US$1.25 billion of 16-year bonds at 6.25 percent and EUR 625 million of eight-year bonds yielding 5.125 percent, raising gross about US$1.95 billion; about US$250 million used to buy back 2024 bond and US$500 million to buy back 2032 bond; net available financing for budget deficit about US$1.2 billion.
- Financing plan and amounts (remainder of 2017):
  - World Bank: CFAF 75 billion.
  - EU: CFAF 19 billion.
  - AfDB: CFAF 21 billion.
  - Sovereign loan from France: CFAF 23 billion.
  - Residual financing gap of 0.7 percent of GDP to be covered by disbursements from the Fund under blended ECF/EFF totaling SDR 193.57 million (29.76 percent of quota): SDR 64.52 million (9.92 percent of quota) under ECF and SDR 129.05 million (19.84 percent of quota) under EFF.

### Financial sector soundness and public banks
- Banking sector and credit:
  - Credit growth slowed from 30 percent in 2015 to 15½ percent at end-2016; projected to decelerate to about 14–15 percent in 2017–19.
  - Average capital adequacy ratio at end-2016: 8.0 percent (in line with regulatory minimum).
  - Share of non-performing loans declined to 9 percent at end-2016, with more than 2/3 covered by provisions.
- Public banks and recapitalization:
  - CNCE recapitalization plan submitted; fiscal transfer of about 0.1 percent in 2016 and another smaller transfer planned for 2017-18; recapitalization planned for completion in 2018.
  - Conversion of part of non-transferable government debt held by BNI into marketable securities enhanced BNI liquidity.
  - Government stakes in two smaller public banks undergoing privatization.

### Structural reforms, business climate, and public enterprises
- Public enterprise restructuring:
  - SIR debt restructuring: Government approved restructuring of SIR debt of about 1¾ percent of GDP in October 2016; SIR debts and liabilities reached 2 percent of GDP at end-2016.
  - PETROCI and SOTRA monitoring and restructuring; both expected to record positive net result for 2016.
  - Air Côte d’Ivoire business plan for 2017–22; semiannual report due end-June 2017.
- Business climate improvements:
  - Single tax form and gradual electronic tax filing; electronic land register rolled out; construction permit information online.
  - Study of the investment code shifted to end-September 2017.
  - Strengthen financial regulatory framework and credit bureaus; facilitate business creation and insolvency resolution.
- Electricity sector:
  - Accumulated arrears and liabilities toward independent power and natural gas producers estimated at 1.1 percent of GDP.
  - Net operating result for 2016 on an accrual basis: FCFA 5.3 billion (slightly positive).
  - Authorities committed to resume electricity price adjustment from mid-2017 (new SB) to ensure long-term financial viability.

### Statistics, QNA, and data dissemination
- Statistical capacity building:
  - Enhance capacities across seven ministries with IMF and development partner TA.
  - Aim to finalize base year work and implement 2008 System of National Accounts in 2018.
  - Complete implementation of Enhanced General Data Dissemination System (NSDP installed April 2016) and make it publicly available.
- Quarterly National Accounts (QNA) expected to be published in second half of 2017; INS expects to publish QNA in October 2017.
- Fiscal operations reporting (GFSM 2001) delayed; expansion to extra budgetary entities postponed to 2018.

### Program modalities, conditionality, and Fund access
- Staff support and review:
  - Staff supports completion of the first review under the ECF and EFF arrangements and modification of end-June 2017 performance criteria.
  - Completion of review would release disbursement equivalent to SDR 96.79 million.
- Augmentation of IMF access:
  - Staff supports access augmentation of 25 percent of quota (162.6 SDR million) for both ECF and EFF arrangements, bringing total access to 100 percent of quota (SDR 650.40 million).
  - Proposed disbursement tranches include a 96.786 million SDR tranche (applies to April 15, 2017; October 15, 2017; April 15, 2018; October 15, 2018; April 15, 2019; October 15, 2019).
- Capacity to repay and obligations:
  - Outstanding Fund credit (millions of SDRs): 2017: 909.4; 2018: 993.4; 2019: 1,073.8; 2020: 961.0; 2021: 827.5; 2022: 703.7; 2023: 569.9; 2024: 426.6; 2025: 296.3.
  - Total obligations in billions of CFA francs: 2017: 49.8; 2018: 95.6; 2019: 100.1; 2020: 100.4; 2021: 117.8; 2022: 109.9; 2023: 117.8; 2024: 125.1; 2025: 113.2.
  - Total obligations as percent of government revenue: 2017: 1.1; 2018: 1.9; 2019: 1.8; 2020: 1.6; 2021: 1.7; 2022: 1.5; 2023: 1.5; 2024: 1.4; 2025: 1.2.

### Risks, debt sustainability, and staff appraisal
- Risk assessment:
  - Baseline tilted to the downside but manageable with sound policies.
  - Key risks: deeper/longer-lasting cocoa price decline, persistent downward price trend amid excess supply, further socio-economic tensions discouraging private investment, adverse growth and higher budget deficit.
- Debt sustainability:
  - Under baseline, PV of public debt-to-GDP ratio projected 43.2 percent in 2017 and declines below 38 percent in subsequent years; PV debt-to-revenue ratio 218 percent in 2017.
  - Debt service-to-revenue ratio projected to reach 20.2 percent in 2027 and stabilize around 16 percent in long run.
  - Most extreme shock scenario: PV debt-to-GDP ratio reaches 71 percent at end of projection horizon.
  - Assessment: Côte d’Ivoire’s risk of external debt distress remains moderate.
- Staff appraisal highlights:
  - Real GDP grew about 9 percent on average during 2012–16.
  - Program helps consolidate macro stability, lower external financing risks, and catalyze official and private financing.
  - Staff emphasizes need to raise poverty-related outlays in 2018 onward and to sustain public financial and debt management reforms.

### Policy recommendations and contingencies
- Short-term and medium-term policy actions:
  - Implement agreed fiscal adjustment measures in 2017 (1½ percent of GDP) and additional 0.5 percent of GDP in 2018 and 2019.
  - Reprioritize current spending, curtail low-priority investment outlays, and introduce new revenue measures (phase out VAT exemptions, rationalize incentives, raise excises).
  - Strengthen PFM, roll out SIGFIP/ASTER interface, complete TSA implementation by end-2018.
  - Advance public enterprise restructuring (SIR, PETROCI, SOTRA) and monitor PPP contingent liabilities via database and MTBF inclusion.
  - Smooth Eurobond maturities via liability management and avoid concentration of maturities in mid-2020s.
- Contingency if shocks deepen:
  - Accelerate revenue measures, broaden VAT base, consider deeper cuts in wage bill and capital outlays, in consultation with Fund staff.

*Source: IMF staff and Ivoirien authorities, EXECUTIVE SUMMARY and chapter excerpts (cr17165) — June 2, 2017.*

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### Context
- Legislative elections in December 2016 and adoption of a new constitution in the national referendum in October 2016 added more certainty to the political environment.
- Social tensions arose in early 2017 with soldiers’ mutinies in January and May and a general strike of civil servants.
- The government agreed to pay overdue bonuses to soldiers of about 0.6 percent of GDP.
- The government agreed to meet civil servants’ demands for higher pension and social payments at the cost of about 0.1 percent in 2017 and 0.1 percent of GDP from 2018.
- The government did not recognize alleged wage arrears claimed by unions of about 1 percent of GDP; negotiations are ongoing.

### Economic outlook
- Real GDP growth:
  - Estimated about 8 percent in 2016.
  - Staff projects real GDP growth at around 7 percent per year in 2017–19.
  - Authorities project growth of 8½ percent in 2017.
- Inflation:
  - Averaged 0.7 percent in 2016.
  - Inflation is expected to remain subdued (projections show 2.0 percent in later years in tables/figures).
- Current account:
  - Estimated current account deficit of 1.1 percent of GDP in 2016.
  - Projected to widen to 3.8 percent of GDP in 2017, narrowing to about 3 percent of GDP by 2019.
- Terms-of-trade shocks:
  - WEO price baseline for cocoa revised down by 30–35 percent for 2017 and beyond.
  - Cocoa accounts for about 1/3 of the country’s goods exports; the price drop would lower merchandise exports by about 7 percent compared to the baseline from 2017 onward.
  - Rising world oil prices since early 2016 have lowered the taxable base in the fuel sector.

### Program policies and fiscal stance
- Fiscal adjustment in response to shocks:
  - Reduction of regulated cocoa producer price by 36½ percent.
  - Fiscal adjustment measures of about 1½ percent of GDP in 2017.
  - These measures limit the fiscal deficit to 4.5 percent of GDP in 2017 despite shocks and social demands.
- Fiscal targets and commitments:
  - Authorities reaffirm commitment to fiscal deficit converging to the WAEMU norm of 3 percent of GDP by 2019.
  - Fiscal consolidation anchored on reprioritization of current spending, curtailing of investment outlays, and implementation of new revenue measures starting in 2018 to offset fiscal losses from terms-of-trade shocks.
- Detailed 2017 fiscal arithmetic (percent of GDP):
  - Fiscal balance (original program): 3.7
  - External and domestic shocks: 2.3
    - Cocoa and fuel tax revenue losses: 1.6
    - One-off payments to soldiers: 0.6
  - Fiscal balance after shocks, before adjustments: 6.0
  - Adjustment measures: 1.5
  - Revised program deficit: 4.5

### Staff views, program modalities, and financing
- Staff supports:
  - Completion of the first review of the program supported by the ECF and EFF arrangements.
  - Augmentation of access under the arrangements by 25 percent of quota (to 100 percent of quota).
  - Modification of performance criteria for end-June 2017.
- Financial implication:
  - Completion of this review would release the disbursement equivalent to SDR 96.79 million.

### Recent economic developments and program performance
- Growth and inflation:
  - Real GDP growth supported by strong investment and private consumption; estimated about 8 percent in 2016.
  - Inflation averaged 0.7 percent in 2016 despite a temporary drought-induced hike.
- External sector:
  - Current account deficit estimated at 1.1 percent of GDP in 2016 reflecting growing investment-related imports and drought-induced decline in cocoa and cashew nuts exports.
- Fiscal performance in 2016:
  - End-December 2016 budget deficit target met, but revenues fell short by 0.6 percent of GDP.
  - Containment of expenditures by 0.9 percent of GDP, including under-execution of foreign-financed investment projects by 0.6 percent of GDP.
  - Unpaid bills and float increased by 0.4 percent of GDP instead of the programmed small reduction; increase did not compromise performance criterion on domestic arrears.
- Banking sector and credit:
  - Credit growth slowed from 30 percent in 2015 to 15½ percent at end-2016.
- Program performance:
  - All end-December and continuous performance criteria (PCs) and structural benchmarks (SBs) were observed.
  - Three indicative targets (ITs) were missed:
    - End-December IT on fiscal revenues missed by about 0.6 percentage point of GDP.
    - IT on domestic arrears repayment missed by about 0.5 percentage point of GDP.
    - IT on primary basic fiscal balance missed by about 0.3 percentage point of GDP.
  - All ITs for end-March except on pro-poor spending appear to have been met.

- Text Table 1: Fiscal operations of the central government, 2016 (Billions of CFA Francs)
  - Total revenue and grants: 20.7 (Prog.), 19.8 (Prel.)
  - Total revenue: 19.1 (Prog.), 18.4 (Prel.)
  - Tax revenue: 16.7 (Prog.), 15.9 (Prel.)
  - Nontax revenue: 2.4 (Prog.), 2.5 (Prel.)
  - Grants: 1.7 (Prog.), 1.4 (Prel.)
  - Total expenditure: 24.7 (Prog.), 23.7 (Prel.)
  - Current expenditure: 17.3 (Prog.), 17.1 (Prel.)
  - Capital expenditure: 7.5 (Prog.), 6.7 (Prel.)
  - Domestically financed capital: 5.1 (Prog.), 5.0 (Prel.)
  - Foreign-financed capital: 2.3 (Prog.), 1.7 (Prel.)
  - Foreign loan-financed: 1.8 (Prog.), 1.2 (Prel.)
  - Overall balance: -4.0 (Prog.), -4.0 (Prel.)
  - Domestic arrears and float: -0.1 (Prog.), 0.4 (Prel.)
  - Overall balance (cash basis): -4.1 (Prog.), -3.6 (Prel.)

### Outlook and risks
- Growth and inflation:
  - Staff projects growth around 7 percent per year in 2017–19 (cumulatively lower by 1½ percentage points relative to the program).
  - Inflation expected to remain subdued.
- External sector and financing:
  - Projected FDI inflows lowered, reflecting lower-than-expected level in 2016.
- Risks:
  - Baseline tilted to the downside but manageable with sound policies.
  - Risks include deeper and longer-lasting effects from falling cocoa prices, persistence of downward price trend in 2017 amid excessive cocoa supply, and further socio-economic tensions (e.g., soldiers’ mutiny, general strikes) that could discourage private investment, adversely affect growth, and raise the budget deficit.

### Economic policies for 2017–19 (overview)
- Policy mix:
  - Accommodate higher deficit of 4.5 percent of GDP in 2017 (0.8 percent of GDP above original program target).
  - Policy adjustment measures equivalent to about 1½ percent of GDP in 2017 and additional 0.5 percent of GDP in both 2018 and 2019.
  - Structural reforms to strengthen performance of public enterprises, improve business climate, and promote private-sector led growth.
- WAEMU-level interaction:
  - Authorities will contribute to rebuilding common WAEMU reserves by increasing reliance on external sources of financing in 2017 and converging to the WAEMU fiscal deficit norm of 3 percent of GDP by 2019.
- Social demands and fiscal space:
  - Creation of fiscal space via new revenue measures, curtailing low-priority spending, and reprioritizing capital outlays as needed to meet demands for better living conditions while supporting per capita income and private-sector job growth.

### A. Fiscal Policy: Adjusting to Shocks
- Identified fiscal pressures:
  - Falling world cocoa prices reduced cocoa-related fiscal revenues by about 1 percent of GDP.
  - Rise in oil prices relative to 2016 lowered fuel tax base, subtracting up to 0.6 percent of GDP from projected fiscal revenues in 2017 and over the medium term.
- Consolidation strategy:
  - Reprioritization of current spending.
  - Curtailing of investment outlays.
  - Implementation of new revenue measures starting in 2018 to offset fiscal losses from terms-of-trade shocks.

*Source: IMF staff and Ivoirien authorities, EXECUTIVE SUMMARY (cr17165) — June 2, 2017.*

### 14. Keeping the fiscal deficit under control despite external and domestic shocks

### 14. Keeping the fiscal deficit under control despite external and domestic shocks

### Fiscal adjustment measures and 2017 outlook
- Guaranteed cocoa price for farmers cut by 36.4 percent (prior action) from April 2017, following price formula targeting about 60 percent of the world price; affects about a third of the population.
- Reactivated fuel price adjustment mechanism (new SB); gasoline price increased by 4 percent in May.
- Curtailment of current expenditure by 0.2 percent of GDP and cut domestic capital outlays by 0.6 percent of GDP (Tables 3a, 3b).
- These measures will limit the fiscal deficit to 4.5 percent of GDP in 2017.

### Medium-term fiscal strategy and revenue measures
- Authorities’ commitments:
  - Phase out VAT exemptions (new SB).
  - Limit issuance of other specific tax exemptions.
  - Rationalize investment tax incentives and loopholes.
  - Raise excise rates on beverages (new SB).
  - Adjust income tax.
  - Further improve tax administration (MEFP ¶¶31-32).
- Revenue impact projections:
  - Boost tax revenue collection by about 0.4 percent of GDP in 2018.
  - Additional 0.5 percent of GDP in 2019.
- Fiscal deficit target:
  - Secure convergence of the fiscal deficit to 3 percent of GDP in 2019, in line with the WAEMU norm.
- Contingency actions if fiscal pressures reemerge in 2017 or 2018:
  - Accelerate implementation of agreed revenue measures.
  - Further broaden the VAT tax base and raise other taxes.
  - Consider additional measures to contain the wage bill and other current expenditure and reprioritize capital outlays.
- Note: Completion of the study on the investment code (SB) shifted to September 2017 to allow time to select consulting firm.

### Unpaid bills, float, and arrears
- Program provides for resolving backlog of unpaid bills and avoiding arrears.
- Targets for clearance of unpaid bills increased to 0.2-0.3 percent of GDP in 2017–18.
- Increasing float did not lead to accumulation of arrears in 2017; authorities committed to refrain from incurring arrears in the future.

### Poverty reduction and social spending
- Poverty reduction is a key priority of the National Development Plan (NDP) (MEFP ¶22): investment in agriculture, expansion of social programs (universal health coverage; universal schooling for boys and girls ages 6–16), rural electrification, and economic diversification.
- External shocks risks:
  - World cocoa price drop and reduction in regulated farmer price could hamper poverty reduction efforts.
- Pro-poor fiscal spending:
  - Projected to drop by 0.6 percent of GDP in 2017 owing to decline in cocoa revenues and one-off payments to soldiers.
  - Government committed to increase pro-poor spending in 2018–20 (MEFP ¶30).
- Mitigating measures:
  - Used about 2/3 of the cocoa industry’s stabilization fund (of about 1¼ percent of GDP) to subsidize farmer regulated prices up to March 2017 and reduced cocoa-related taxes from April.
  - Extension of the cash transfer program supported by the World Bank expected to provide safety net over medium to long term.

### Public Financial Management (PFM) reforms
- Progress toward implementing WAEMU’s PFM directives by 2019:
  - Finalized new program budgeting classification.
  - Presented to Parliament a new medium-term expenditure framework outline for five pilot ministries for the 2017 budget.
- IFMIS improvements:
  - New budgetary information system (SIGFIP) and the interface with the Accounting IT system (ASTER) should be rolled-out by end-2017 (MEFP ¶43).
  - Expected benefits: better tracking of payments and phasing-out of Treasury advances that bypass regular expenditure authorization procedures.
- Public Investment Management (PIM):
  - Enhance multi-year public investment program (PIP) elaboration and presentation by preparing procedures’ manuals and incorporating data from ongoing PPP projects (MEFP ¶44).
  - Creation of procurement units in technical ministries by end-2017; gradual implementation of paperless public tender procedures and revisions of the public procurement code on concessions (MEFP ¶45).
- Fiscal risk surveillance from public enterprises and PPPs (MEFP ¶47 and ¶50):
  - Performance contracts to be signed with managers of 7 public enterprises, including CI-Energies, by end-2017.
  - Reorganization of SOE surveillance by strategic sectors; public enterprises’ debt database includes debt stock for 19 enterprises and will be enhanced to include debt service for 12 of them by mid-2017.
  - Review all PPP conventions and put in place a PPP database (new SB) to monitor contingent liabilities; MTBF to include PPP risk analysis; medium-term objective to revise legal and institutional PPP framework with World Bank assistance.
- Treasury Single Account (TSA):
  - Pilot phase ended in October 2016; new implementation schedule targets full TSA deployment by end-2018 (MEFP ¶51).
  - Staff advised closing government accounts in commercial banks to centralize cash movements and enhance cash management.

### Debt management and financing strategy
- Regional monetary tightening effects:
  - BCEAO increased lending facility rate from 3.5 percent to 4.5 percent in December 2016, widening the spread between minimum bid rate for open market refinancing operations and credit facility rate to 200 basis points.
  - BCEAO limited access to refinancing for banks to twice a bank’s capital.
  - In March 2017, obligatory reserve requirements on bank deposits reduced from 5 percent to 3 percent.
- Eurobond issuance and liability management (MEFP ¶¶39–40):
  - Plan to issue a long-term US dollar-denominated bond and a medium-term euro-denominated bond, with principal repayments spread over a few years.
  - Part of proceeds will be used to buy back existing external debt securities maturing in 2024 and 2032.
  - Strategy expected to finance the budget deficit and smooth repayment profile of existing Eurobonds, easing concentration of maturities in the mid-2020s.
  - Côte d’Ivoire’s risk of external debt distress will remain moderate (see Debt Sustainability Analysis Update and TMU Table 1).
- Debt management efficiency improvements:
  - Merge external and domestic debt units in the debt policy directorate.
  - Reinforce cash management operations and set up a network of primary dealers to promote issuance and secondary market trading of CFA-denominated government debt securities in the regional market (MEFP ¶41).

### Financial sector stability and public banks
- Banking system soundness and credit trends:
  - Credit growth to the economy projected to decelerate to about 14–15 percent in 2017–19, broadly consistent with projected annual real GDP growth (Table 4).
  - At end-2016, average capital adequacy ratio of the banking system stood at 8.0 percent (in line with the regulatory minimum).
  - Most banks complied with new minimum bank capital requirement of FCFA 10 billion ahead of mid-2017 deadline; stronger enforcement needed for 4 smaller banks.
  - Share of non-performing loans declined to 9 percent at end-2016, with more than 2/3 covered by provisions (Table 5).
- Public banks measures (MEFP ¶55; ¶54):
  - CNCE recapitalization plan submitted to regional Banking Commission in mid-2016 includes mix of bank’s own efforts and central budget recapitalization.
    - Fiscal transfer of about 0.1 percent in 2016 and another smaller transfer planned for 2017-18 sustaining liquidity and covering operating losses.
    - Envisaged sale of land and recovery of bad loans not yet materialized; recapitalization planned for completion in 2018.
  - Conversion of part of non-transferable government debt held by BNI into marketable securities enhanced BNI liquidity (SB for end-2016).
  - Government stakes in two smaller public banks undergoing privatization (MEFP ¶54).

### Structural reforms to improve business climate and public enterprises
- Public enterprise restructuring:
  - National oil refinery (SIR) debt restructuring: Government approved restructuring of SIR debt of about 1¾ percent of GDP in October 2016; selection of financial institution and contracting of new long-term government-guaranteed loan delayed; expected completion by December 2017 (new SB).
  - SIR debts and liabilities reached 2 percent of GDP at end-2016; staff advised timely completion of restructuring plan.
  - Monitoring and restructuring progress for PETROCI and SOTRA; both expected to record positive net result for 2016 after a 2015 deficit.
  - Air Côte d’Ivoire expected to progressively enhance profitability via revised business plan for 2017–22; semiannual financial report due to Minister of Budget by end-June 2017 (SB).
- Business climate improvements:
  - Single tax form and gradual implementation of electronic tax filing.
  - Electronic land register rolled out; construction permit information available online (MEFP ¶21).
  - Study of the investment code (SB) to be completed by end-September (rather than end-June).
  - Strengthen financial regulatory framework via creation of an agency to improve transparency and manage user complaints in financial services; strengthen credit bureaus (MEFP ¶57).
  - Additional reforms planned: facilitate business creation, spur border trade, better enforce contract execution, improve insolvency resolution (MEFP ¶64).
  - Governance measures: public procurement control, stepped-up anticorruption campaign, promotion of public integrity, transparency and accountability.

### Electricity sector reforms
- Sector financial position:
  - Accumulated arrears and liabilities toward independent power and natural gas producers estimated at 1.1 percent of GDP, mostly originating from public sector and foreign customers.
- Government commitments to resolve arrears:
  - Clear unpaid bills for central administration and implement plan to clear arrears from public entities and sub-national governments.
  - Facilitate plan to clear arrears of public enterprises, in coordination with the World Bank.
- Tariff and operational notes:
  - Authorities rescinded electricity price increase of January 2016 amid public protests.
  - Net operating result for 2016 on an accrual basis was slightly positive (FCFA 5.3 billion) and expected to improve due to new export tariffs, better availability and use of natural gas (combined cycles for AZITO and CIPREL fully operational), and new hydroelectric projects coming into operation.
  - Authorities committed to resume electricity price adjustment from mid-2017 (new SB) to ensure long-term financial viability (MEFP ¶60).

### Strengthening statistics and data dissemination
- Capacity building and methodological improvements:
  - Enhancing human and material resource capacities across seven ministries with IMF and development partner technical assistance.
  - High-frequency statistics improvements via new surveys based on agricultural census and analysis of administrative financial declarations.
  - Aim to finalize base year work and implement 2008 System of National Accounts in 2018.
  - Complete implementation of Enhanced General Data Dissemination System by making the National Summary Data Page (NSDP)—installed in April 2016—publicly available (MEFP ¶67).
- Quarterly National Accounts (QNA):
  - Expected to be published in the second half of 2017; INS expects to publish QNA in October 2017 after addressing inconsistencies and strengthening capacities with AFRITAC West support.
- Fiscal operations reporting:
  - Preparation of fiscal operations based on GFSM 2001 delayed due to capacity constraints and team reshuffling.
  - Expansion of fiscal coverage to include extra budgetary entities postponed to 2018 (MEFP ¶52).

### Program modalities, conditionality, and financing
- Program monitoring:
  - Program monitored in semiannual reviews through quantitative performance criteria (PCs), indicative targets (ITs), and structural benchmarks (SBs) (MEFP Tables 1–2).
  - Staff supports authorities’ request to modify end-June 2017 PCs on overall fiscal balance, net domestic financing, and new external debt; new PCs proposed for end-December 2017. PCs and ITs defined in the TMU.
- Augmentation of IMF access:
  - Staff supports access augmentation of 25 percent of quota for both ECF and EFF arrangements (of which, 8.33 percent of quota for ECF and 16.67 percent of quota for EFF arrangements), split equally across the remaining six reviews.
  - This would bring total access under the program to 100 percent of quota.
  - Rationale: adverse terms of trade shock projected to widen the 2017 current account deficit from 1.1 percent of GDP in 2016 to 3.8 percent of GDP.
  - Under augmented program, Fund financing will cover about 2/3 of the residual balance of payments financing gap over 2017–19, after the projected Eurobond issue; remainder to be closed by bilateral and multilateral sources.
- Financing plan and amounts:
  - In June 2017, country plans to raise about US$ 1 billion from the Eurobond market.
  - Projected financing for remainder of 2017 includes budget support:
    - World Bank: CFAF 75 billion.
    - EU: CFAF 19 billion.
    - AfDB: CFAF 21 billion.
    - Sovereign loan from France: CFAF 23 billion.
  - Residual financing gap of 0.7 percent of GDP to be covered by disbursements from the Fund under three-year ECF and EFF blended arrangements totaling SDR 193.57 million (29.76 percent of quota), of which SDR 64.52 million (9.92 percent of quota) under ECF and SDR 129.05 million (19.84 percent of quota) under EFF (Table 8b).
  - Staff notes good prospects for adequate financing given continued access to regional and international bond markets and donor support.

*IMF staff summary based on "cr17165 - 14. Keeping the fiscal deficit under control despite external and domestic shocks."*

### 37. Program implementation risks are manageable, assuming a baseline scenario of

### 37. Program implementation risks are manageable, assuming a baseline scenario of

### Program implementation risks and capacity to repay
- Program implementation risks are considered manageable under a baseline scenario of stable international environment and continued sound policies.
- This assessment reflects the government’s good record in implementing the 2012–15 Fund-supported program and the new policy adjustment measures agreed by the authorities in the context of this review.
- Risks could increase if the external environment deteriorates further or domestic social tensions rise; keeping the program on track in that case would require deeper adjustment in macroeconomic policies, in consultation with Fund staff.
- The capacity to repay the Fund is assessed to be adequate (Table 7), consistent with a favorable outlook for economic growth.

### External debt market access and debt management
- Côte d’Ivoire is expected to retain external debt market access given current favorable market conditions.
- Sovereign bond yield spread over U.S. Treasury securities of comparable maturities:
  - Côte d’Ivoire: 418 basis points at end-April.
  - Selected sub-Saharan African economies average: 555 basis points.
- Authorities’ debt management strategy aims to prevent excessive increases in external debt service due to concentration of maturities or U.S. dollar appreciation.

### Concessional eligibility note
- With GNI per capita of US$1,410 in FY2015 (above the IDA operational cutoff of US$1,185), Côte d’Ivoire is classified as presumed blender, eligible for accessing both concessional and non-concessional IMF resources.

### Safeguards assessment
- The 2013 assessment of the WAEMU regional central bank, BCEAO, found a continuing strong control environment.
- All recommendations from the assessment have been implemented.

### Staff appraisal — growth and risks
- Real GDP grew by about 9 percent on average during 2012–16.
- Despite high growth and focus on reducing poverty in the authorities’ NDP, the poverty rate has remained elevated.
- The economic outlook has deteriorated in the context of external shocks and domestic events but remains positive due to diversification and ongoing structural reforms.
- Agriculture is expected to benefit from favorable weather conditions despite the cocoa price drop.
- Growth is projected to remain strong in extractive industries and services, supported by resilient private consumption and investment.
- Risks to growth are tilted to the downside but manageable, mainly from possible further adverse export price movements and domestic socio-economic tensions.

### Program contribution to growth and poverty protection
- The Fund-supported program addresses impediments to a sustainable balance of payments position and inclusive growth by consolidating macroeconomic stability, lowering external financing risks, and catalyzing official development and private financing.
- The program will limit the reduction in pro-poor spending to 0.6 percent of GDP in 2017.
- Staff highlights the importance of raising poverty-related outlays in 2018 and onward.

### Fiscal consolidation and revenue/expenditure measures
- Bolstering fiscal revenues and rationalizing expenditure are crucial to achieve the programmed fiscal consolidation.
- External and domestic shocks have caused permanent revenue losses and added to budget spending.
- The authorities have committed to new revenue measures and spending cuts to secure the programmed fiscal tightening.
- Revenues and spending measures are critical to create fiscal space to meet demands for better living conditions in a fast-growing economy.

### Public financial and debt management, and public enterprise reform
- Prudent public financial and debt management practices, along with public enterprise reform, are needed to ensure debt sustainability.
- When raising external financing for the fiscal deficit, avoiding concentration of maturities is important to prevent acute increases in debt service.
- Prudent debt management is needed to smooth the long-term debt service profile and safeguard Côte d’Ivoire’s classification of moderate risk of external debt distress.
- Public enterprise reform is important: total debt of public enterprises was estimated at 3½ percent of GDP at end-2016.

### Energy sector risks
- Accumulation of quasi-fiscal liabilities in the energy sector is a source of concern.
- Delays in restructuring SIR debts and arrears are contributing to an accumulation of obligations.
- Settlement of existing arrears in the electricity sector and measures enabling full cost recovery in the energy sector are crucial for stable functioning and attracting private investments.

### Structural reforms, investment, and statistics
- Achieving strong, sustainable, and inclusive growth will require further progress in improving the business climate and targeted public investment.
- With a tapering of the productivity boost from the post-conflict catch-up, private investment should become more important for sustaining high growth.
- Staff welcomes authorities’ structural reforms to improve the business environment and the government commitment to consolidate the financial situation of key sectors (electricity, banking, and oil refining).
- Prioritized public investment in rural areas would make growth more inclusive.
- Continued efforts to improve the quality and dissemination of economic statistics are encouraged:
  - Known weaknesses in high frequency indicators and inconsistencies with published annual national accounts complicate assessment of economic conditions.
  - Staff encourages bolstering support for improvements in data collection (in subsistence agriculture and business revenues), upgrading methodologies and dissemination processes, and the publication of the QNA.

*IMF Country Report excerpt*

### 48. Staff supports the authorities’ requests for augmentation of program access under

### cr17165 - 48. Staff supports the authorities’ requests for augmentation of program access under

### Program access augmentation and policy stance
- Staff supports the authorities’ requests for augmentation of program access under the ECF and EFF arrangements by 162.6 SDR million (25 percent of quota).
- This augmentation would bring the total access under the arrangements to SDR 650.40 million (100 percent of quota).
- The attached Letter of Intent (LOI) and Memorandum of Economic and Financial Policies (MEFP) set out appropriate policies to pursue the program’s objectives.
- The capacity to repay the Fund is adequate, and risks to program implementation are manageable given the government’s solid track record for policy implementation.

### Macroeconomic outlook (selected indicators, 2014–20; annual percent changes unless otherwise indicated)
- Real GDP growth (annual percent changes): 2014: 8.8; 2015: 8.9; 2016 Est.: 7.9; 2017 Prog.: 7.7; 2018 Prog.: 7.9; 2019 Proj.: 7.1; 2020 Proj.: 7.2.
- GDP deflator (annual percent changes): 2014: 3.9; 2015: 1.8; 2016 Est.: 1.0; 2017 Prog.: 1.4; 2018 Prog.: 1.4; 2019 Proj.: 2.4; 2020 Proj.: 1.7.
- Consumer price index (annual average): 2014: 0.4; 2015: 1.2; 2016 Est.: 1.0; 2017 Prog.: 0.7; 2018 Prog.: 1.5; 2019 Proj.: 2.0; 2020 Proj.: 2.0.
- Export volume (annual percent changes): 2014: 3.0; 2015: 6.8; 2016 Est.: 3.1; 2017 Prog.: -10.0; 2018 Prog.: 6.2; 2019 Proj.: 7.5; 2020 Proj.: 5.1.
- Import volume (annual percent changes): 2014: 4.2; 2015: 19.7; 2016 Est.: 10.2; 2017 Prog.: 5.8; 2018 Prog.: 8.8; 2019 Proj.: 11.5; 2020 Proj.: 7.4.

### Fiscal position and public finance (selected levels and ratios)
- Total revenue and grants (percent of GDP, 2014–20): 2014: 8.4; 2015: 18.9; 2016 Est.: 11.7; 2017 Prog.: 6.6; 2018 Prog.: 11.3; 2019 Proj.: 10.2; 2020 Proj.: 11.3.
- Total expenditure (percent of GDP, 2014–20): 2014: 8.4; 2015: 21.8; 2016 Est.: 16.7; 2017 Prog.: 12.2; 2018 Prog.: 9.5; 2019 Proj.: 12.8; 2020 Proj.: 7.3.
- Overall balance, including grants (percent of GDP): 2014: -2.2; 2015: -2.9; 2016 Est.: -4.0; 2017 Prog.: -4.0; 2018 Prog.: -3.7; 2019 Proj.: -4.5; 2020 Proj.: -3.7.
- Primary basic balance (percent of GDP, note definition in source): 2014: -0.5; 2015: -0.4; 2016 Est.: -1.6; 2017 Prog.: -1.9; 2018 Prog.: 0.1; 2019 Proj.: -0.8; 2020 Proj.: 0.8.
- Gross investment (percent of GDP): 2014: 16.7; 2015: 18.2; 2016 Est.: 19.3; 2017 Prog.: 19.6; 2018 Prog.: 20.2; 2019 Proj.: 20.2; 2020 Proj.: 21.3.
- Central government debt, gross (percent of GDP): 2014: 44.8; 2015: 47.8; 2016 Est.: 48.3; 2017 Prog.: 48.5; 2018 Prog.: 47.9; 2019 Proj.: 48.7; 2020 Proj.: 47.4.
- Central government debt (excluding C2D) (percent of GDP): 2014: 36.2; 2015: 40.5; 2016 Est.: 42.4; 2017 Prog.: 42.4; 2018 Prog.: 42.5; 2019 Proj.: 43.2; 2020 Proj.: 43.9.

### Balance of payments and external sector (selected levels, Billions of CFA francs; current account and reserves)
- Current account (including official transfers): 2014: 252; 2015: -119; 2016: -235; 2017 Est.: -574; 2018 Prog.: -879; 2019 Prog.: -636; 2020 Proj.: -765; 2021 Proj.: -815; 2022 Proj.: -824.
- Current account excluding grants (Billions CFAF): 2014: -52; 2015: -401; 2016: -528; 2017 Est.: -917; 2018 Prog.: -1,222; 2019 Prog.: -1,033; 2020 Proj.: -1,161; 2021 Proj.: -1,267; 2022 Proj.: -1,303.
- Trade balance (Billions CFAF): 2014: 1,915; 2015: 1,874; 2016: 1,953; 2017 Est.: 1,843; 2018 Prog.: 1,512; 2019 Prog.: 1,948; 2020 Proj.: 1,795; 2021 Proj.: 1,957; 2022 Proj.: 2,191.
- Exports, f.o.b. (Billions CFAF): 2014: 6,411; 2015: 6,938; 2016: 6,308; 2017 Est.: 8,021; 2018 Prog.: 6,600; 2019 Prog.: 8,885; 2020 Proj.: 7,119; 2021 Proj.: 7,787; 2022 Proj.: 8,632.
- Imports, f.o.b. (Billions CFAF): 2014: 4,496; 2015: 5,064; 2016: 4,355; 2017 Est.: 6,178; 2018 Prog.: 5,088; 2019 Prog.: 6,936; 2020 Proj.: 5,324; 2021 Proj.: 5,830; 2022 Proj.: 6,441.
- Gross imputed official reserves (end of year stock, Billions CFAF): 2014: 1,559; 2015: 1,791; 2016: 1,552; 2017 Est.: 2,208; 2018 Prog.: 1,798; 2019 Prog.: 2,653; 2020 Proj.: 2,019; 2021 Proj.: 2,377; 2022 Proj.: 2,627.
- Gross imputed official reserves (percent of broad money): 2014: 11.0; 2015: 9.7; 2016: 7.6; 2017 Est.: 10.9; 2018 Prog.: 8.2; 2019 Prog.: 11.7; 2020 Proj.: 8.5; 2021 Proj.: 9.0; 2022 Proj.: 9.4.

### Monetary and financial sector (selected indicators)
- Broad money (M2) annual growth (percent): 2014: 16.1; 2015: 18.8; 2016 Est.: 10.7; 2017 Prog.: 12.1; 2018 Prog.: 14.3; 2019 Proj.: 12.9; 2020 Proj.: 12.3; 2021 Proj.: 12.4; 2022 Proj.: 11.2.
- Net foreign assets (changes in percent of beginning-of-period broad money): 2014: 4.1; 2015: 3.2; 2016 Est.: 0.3; 2017 Prog.: -2.4; 2018 Prog.: 4.7; 2019 Proj.: 4.1; 2020 Proj.: 1.8; 2021 Proj.: 2.9; 2022 Proj.: 2.1.
- Credit to the economy (percent of GDP): 2014: 21.7; 2015: 29.6; 2016 Est.: 14.7; 2017 Prog.: 15.4; 2018 Prog.: 13.4; 2019 Proj.: 15.3; 2020 Proj.: 14.6; 2021 Proj.: 14.2; 2022 Proj.: 12.9.
- Financial soundness indicators (selected, percent, 2013–16): Risk-weighted capital to assets ratio: 2013: 9.2; 2014: 10.1; 2015: 8.2; 2016: 8.0. Nonperforming loans (gross)/total loans: 2013: 12.3; 2014: 11.3; 2015: 10.6; 2016: 9.0. Provisions/NPLs: 2013: 73.6; 2014: 77.1; 2015: 68.6; 2016: 71.1.

### Capacity to repay the Fund (Table 7, 2017–25; Fund obligations and outstanding credit)
- Fund obligations based on existing credit (millions of SDRs; principal): 2017: 57.6; 2018: 109.6; 2019: 113.2; 2020: 112.8; 2021: 128.1; 2022: 93.7; 2023: 69.3; 2024: 49.8; 2025: 27.0.
- Charges and interest on existing credit (millions of SDRs): 2017: 1.0; 2018: 1.5; 2019: 1.5; 2020: 1.5; 2021: 1.4; 2022: 1.3; 2023: 1.2; 2024: 1.1; 2025: 1.0.
- Total obligations based on existing and prospective credit (millions of SDRs): 2017: 59.6; 2018: 114.2; 2019: 119.6; 2020: 120.0; 2021: 140.6; 2022: 130.7; 2023: 140.1; 2024: 148.7; 2025: 134.6.
- Total obligations in billions of CFA francs: 2017: 49.8; 2018: 95.6; 2019: 100.1; 2020: 100.4; 2021: 117.8; 2022: 109.9; 2023: 117.8; 2024: 125.1; 2025: 113.2.
- Total obligations as percent of government revenue: 2017: 1.1; 2018: 1.9; 2019: 1.8; 2020: 1.6; 2021: 1.7; 2022: 1.5; 2023: 1.5; 2024: 1.4; 2025: 1.2.
- Outstanding Fund credit (in millions of SDRs): 2017: 909.4; 2018: 993.4; 2019: 1,073.8; 2020: 961.0; 2021: 827.5; 2022: 703.7; 2023: 569.9; 2024: 426.6; 2025: 296.3.
- Outstanding Fund credit (in percent of quota): 2017: 139.8; 2018: 152.7; 2019: 165.1; 2020: 147.8; 2021: 127.2; 2022: 108.2; 2023: 87.6; 2024: 65.6; 2025: 45.6.

### Financing, disbursements, and disbursement schedule under ECF/EFF
- Original schedule total (Table 8a): Total 487.800 (millions of SDRs); ECFEFF split: 162.600 ECFEFF total; program split 325.200; percent of quota: Total 75.000 (percent of quota), ECFEFF 25.000 and 50.000 respectively. Note: Côte d’Ivoire's quota is SDR 650.40 million.
- Proposed schedule total (Table 8b) after augmentation: Total 650.400 (millions of SDRs); ECFEFF split: 216.800 ECFEFF total; program split 433.600; percent of quota: Total 100.000; ECFEFF 33.333 and 66.667 respectively. Specific proposed disbursement tranches (each listed as Amount (millions of SDRs) and Percent of Quota):
  - December 12, 2016 (Board approval): 69.686 total; 23.229 ECF; 46.457 EFF; percent of quota: 10.714 total; 3.571 ECF; 7.143 EFF.
  - April 15, 2017 and subsequent review dates (proposed larger tranches): 96.786 total; 32.262 ECF; 64.524 EFF; percent of quota: 14.881 total; 4.960 ECF; 9.921 EFF (applies to April 15, 2017; October 15, 2017; April 15, 2018; October 15, 2018; April 15, 2019; October 15, 2019 with small rounding differences in final tranche).
- Table 7 memorandum: Net use of Fund credit (millions of SDRs) across years: 2017: 136.0; 2018: 84.0; 2019: 80.4; 2020: -112.8; 2021: -133.4; 2022: -123.8; 2023: -133.8; 2024: -143.4; 2025: -130.3.
- Disbursements (millions of SDRs): 2015: 193.6; 2016: 193.6; 2017: 193.6; thereafter zeros shown in table for those disbursement lines.

*Italic: Sources: Ivoirien authorities; and IMF staff estimates and projections. (Content unit: cr17165 - 48. Staff supports the authorities’ requests for augmentation of program access under)*

### Annex I. Cocoa Sector Snapshot

### Annex I. Cocoa Sector Snapshot

### Production
- Côte d’Ivoire is the top cocoa exporter, producing about 40 percent of world output.
- Ghana accounts for about 20 percent of world production.
- Other major producers include Indonesia, Nigeria, Cameroon, Brazil and Ecuador.
- In 2016, 33 percent of the beans harvested in Côte d’Ivoire were processed in the country.
- The sector directly and indirectly contributes to 1/4 of the country’s employment.

### Prices and supply conditions
- After four years of steady increases sustained by fast growing demand, notably from emerging markets, cocoa prices plunged by more than 35 percent starting from the second half of 2016, to about 1300 CFAF/kg.
- On the supply side, favorable weather conditions are expected to result in increased yields in West Africa and Brazil.

### Taxes and regulator
- Two types of taxes proportionate to export values:
  - a registration tax of 5 percent (until March 2017);
  - an export tax of 14.6 percent.
- The registration tax was set to zero from April 2017 to mitigate the impact of price decline on the producers.
- The Conseil Café Cacao (CCC), created in 2011, is the sole independent cocoa market regulator.
  - The CCC collects additional proportionate fees on exports at a rate of 2.4 percent.
  - The CCC board consists of government and private sector representatives.

### Price regulation and stabilization mechanisms (CCC)
- The CCC runs a program of forward sale aimed at stabilizing prices during a harvest season; the system relies on pooling forward contracts (hedging).
- Since the 2012 reform of the sector, the CCC fixes the farmgate price at 60 percent of the “reference export price”.
  - The fixed farmgate price guarantees a minimum revenue to farmers and avoids price volatility within each harvest season.
  - This reform is an improvement over the previous decade during which farmer prices averaged 40 percent of world prices.
  - The “reference export price” is computed as the average forward price of a pre-harvest auction for export permits.
- The CCC also runs a stabilizing fund, used to:
  - compensate unexpected losses from the deviations between the “reference export price”; and
  - cover price differences for the sales of the (unhedged) rest of the production on the spot market.

### Recent developments and mitigating factors (2016–2017)
- Sectoral losses in 2017 are estimated at about 2 percent of GDP (compared to previous year), despite forward contracts and because of hedging failures.
- Offsetting factors:
  - Larger production volumes and forward contract sales partially offset the effect of the price drop.
- Adverse dynamics:
  - The price drop prompted defaults on the forward contracts, which increased the supply coming to the spot market and further depressed the spot price.
- Stabilizing fund and fiscal impacts:
  - In the main 2016/17 harvest season, the CCC drew about 0.9 percent of GDP from its stabilizing funds to compensate for defaults and support regulated prices.
  - From April 2017, the government lowered the farmgate price by 36.4 percent in accordance with the 2012 reform; the farmgate price drop is projected to lower farmers’ revenues by about 0.9 percent of GDP for the remainder of the year.
  - To mitigate the impact on farmers’ income, the government lowered the registration tax from 5 percent to zero in 2017 to avoid a larger farmgate price decrease that would be required to maintain cost recovery in cocoa transport and processing activities.
  - This tax cut and lower income from cocoa export tax would reduce fiscal revenues in 2017 by an estimated 0.6 percent of GDP.

*Annex I. Cocoa Sector Snapshot — cr17165*

### 7. The current account balance should post a deficit of 1.1 percent of GDP. This deficit

### 7. The current account balance should post a deficit of 1.1 percent of GDP. This deficit

### External balances and financing
- The current account balance should post a deficit of 1.1 percent of GDP (2016).
- The deficit appears to be due to:
  - a lower trade surplus, and
  - a slight deterioration of balances for services and primary and secondary income.
- The deficit is largely financed by flows that do not generate debt:
  - project grants: 0.5 percent of GDP,
  - foreign direct investment: 1.4 percent of GDP.

### Fiscal performance in 2016
- The overall budget deficit remained in line with the program target of 4.0 percent of GDP.
- Tax revenue collection: 14.9 percent of GDP versus a target of 15.8 percent of GDP.
  - Shortfalls due to lower amounts for the VAT, the tax on business profits (BIC), petroleum products and taxes and fees on cocoa exports.
- Total expenditures: estimated at 23.4 percent of GDP versus the projection of 24.8 percent of GDP.
  - Under-consumption mainly due to execution levels of investment expenses financed using fewer external and personnel resources than projected.
- Resulting fiscal balances:
  - deficit base primary balance equivalent to 1.8 percent of GDP,
  - total budget shortfall of 3.9 percent of GDP.
- Financing of shortfall:
  - funds raised in the WAEMU money and financial markets for a net amount of 915.7 billion, including 265 billion in SUKUKs.

### Public sector debt and corporate liabilities
- Central government outstanding debt: 42.5 percent of GDP in 2016, up from 42.2 percent of GDP in 2015 (increase due to financing for infrastructure spending).
- Level of domestic debt: 19.2 percent of GDP in 2016 versus 18.2 percent of GDP in 2015.
- Public enterprises debt stock (public enterprise database): 3.4 percent of GDP as of end-2016.
  - Of that, 0.1 percent of GDP is guaranteed by the government.
- Corporate debt monitoring was strengthened through better management of statistics and payments.

### Monetary developments and banking sector soundness
- Money supply increase: up 12.1 percent (2016), mainly due to domestic lending.
- Lending to the economy increased 15.4 percent in 2016.
  - Regular medium and long-term loans: +28.6 percent.
- Net Government Position: up 27.8 percent due to financing for government revenue-generating projects.
- Net external assets: down by 9.1 percent, mainly due to low repatriation of foreign currency from exports.
- Government established a committee of regulatory authorities, commercial banks and economic operators to comply with repatriation regulations.
- Banking sector solvency:
  - solvency ratio: 8.04 percent (slightly above the 8 percent norm).
  - As of end-December 2016, out of 23 banks subject to prudential regulation, four (4) banks are not in compliance with the solvency norm.
  - Total balance sheet of non-compliant banks: 2.3 percent of all subject banks.
- Minimum capital stock measures:
  - thresholds: CFAF 10 billion for banks and CFAF 3 billion for financial institutions in the banking category.
  - Effective for licensing applications filed starting July 1, 2015.
  - Compliance deadline for existing institutions: June 30, 2017.
  - As of end-December 2016, seven (7) banks did not meet this provision, versus 10 (ten) in 2015.
- New solvency norms based on Basel 2 and 3 scheduled to come into effect on January 1, 2018.

### Monetary policy operations
- December 2016 Monetary Policy Committee measures to improve interbank market operations:
  - expanded the corridor formed by the minimum bid rate for tenders to inject liquidities and the marginal window lending rate by one (1) percentage point.
  - minimum interest rate for bidding in tenders to inject liquidity: remains set at 2.50 percent (level since September 16, 2013).
  - marginal lending facility rate raised from 3.50 percent to 4.50 percent on December 16, 2016.
- March 2017 decision:
  - lowered the required reserves coefficient by 200 basis points for reserves applicable to banks, down from 5 percent to 3 percent effective March 16, 2017.
  - 5 percent was the level in effect since March 16, 2012.

### Financial markets and capital formation
- BRVM developments (2016):
  - transitioned to live quotes; awarded “Africa’s most innovative stock market” at the 9th Forum on Investment in Africa on September 19, 2016.
  - joined the MSCI Frontier Markets Index on November 14, 2016.
  - Transactions in the financial market amounted to CFAF 392.6 billion in 2016, up 25.3 percent over 2015.
  - Number of shares traded rose 71.4 percent in volume.
  - Admitted five SUKUKs for an amount of CFAF 766 billion; became the leading African market for SUKUKs ahead of Khartoum.
  - Implementing an SME division and intends to launch bonds for the diaspora.
- Investment climate and private investment:
  - CEPICI recorded 12,166 new business creations as of end-December 2016 versus 9,534 in 2015 (28 percent increase).
  - Investment agreements stand at 672 billion and 73 percent of them are Foreign Direct Investments (FDI).
  - Private investment rate: 13.9 percent of GDP in 2016 versus 12.9 percent of GDP in 2015.
  - Private sector contribution to net job creation: 83.0 percent.

### Labor, health, and education policies
- Employment (2016):
  - number of wage earners rose 4.4 percent, amounting to 38,369 net jobs created.
  - private sector: +4.7 percent (+31,828 net jobs),
  - public sector: +3.3 percent (+6,549 net jobs).
  - Employment Stimulus Strategy (SRE) and National Employment Policy (PNE) support job creation.
  - Youth Employment Agency programs include vocational training to improve employability.
- Universal Health Care Coverage policy:
  - pilot phase beginning; nine university medical centers and nine level-two hospitals selected.
  - target population: students; coverage scheduled to begin in the first half of 2017.
  - upgrading of identified health facilities began in November 2016.
- Education policy:
  - Law No. 2015-635 of September 17, 2015 enacted, amending Article 2 of Law No. 95-695 of September 7, 1995, making schooling compulsory for all children from 6 to 16 years old.
  - 7,523 classrooms under construction.
  - 7,000 teachers in training for the 2017–18 school year.
  - deployment of local middle schools begun in the 2013–14 school year.
- Health outcomes (2012–15 period) and PNDS progress:
  - percentage of the population that lives less than 5 km from a health center rose from 44 percent to 67 percent.
  - immunization coverage among infants from 0 to 11 months old: 93.63 percent in 2015 from 62 percent in 2013.
  - number of HIV+ pregnant women receiving complete antiretroviral treatment increased by more than 40 percent.
  - usage rate of health services: 43.33 percent in 2015 versus 18 percent at the beginning of the period.

### Program implementation and structural reforms (end-2016)
- Program performance criteria for end-December 2016 were met.
  - total budget deficit: CFAF -838.1 billion versus a floor level of -839.5 billion.
  - updated amount of new external debts: $522.2 million versus the projected $762.9 million.
  - tax revenue losses contributed to not meeting some indicative benchmarks (tax revenue floor and basic primary balance).
  - budget execution completed with a floating debt level of CFAF 305.6 billion versus 226.8 billion in 2015, generating a net increase of unpaid bills of CFAF 78.8 billion versus a floor of 25 billion for their reduction.
- All program structural benchmarks for end-December 2016 were met:
  - reorganization of the Debt Department into front-middle-and back-office structure implemented by Order No. 512 MEF/DGTCP/DEMO of December 30, 2016.
  - securitized debts held by the Banque Nationale d’Investissement (BNI) exchanged into marketable securities.
  - two (2) new Medium-Sized Businesses Centers (CMEs) established in Abidjan by Order No. 856/MPMBPE/DGI of December 2, 2016 (raising their number to four (4)); eligibility limit for businesses in the CMEs lowered from CFAF 400 to 200 million.

- Major reforms implemented to strengthen fiscal space, public debt management, business environment and tax collection:
  - electronic filing and payments for companies with turnover of more than 200 million using www.e-impots.gouv.ci.
  - electronic land register operational via http://econsultation.dgi.gouv.ci.
  - One-Stop Shop for Filing Financial Statements finalized; financial statements for FY 2012, 2013 and 2014 entered, FY2015 being entered.
  - Tax Policy Unit set up in the Ministry of the Budget.
  - Medium-Sized Business Department and Investigation, Crosschecking and Analysis Department established to strengthen tax control.
  - reorganization of the Public Spending Evaluation and Audit Unit to better take the audit dimension into account.
  - rotating system for key stakeholders in spending implemented for payment authorization officers, budget auditors and financial auditors; staff changes in the General Tax Department (DGI) and the General Customs Department (DGD).
  - work to present central government financial transactions according to GFSM 2001 being finalized.
  - order implementing competitive management framework for government orders lower than CFAF 100 million issued.
  - public enterprises debt database consolidated and framework for including their debt service implemented.
  - Internet portal implemented for civil servants to access wage information on the website of the General Department of the Budget and Finance (DGBF).
  - 2016–18 three-year plan to strengthen capacities of Department of Public Debt and Grants (DDPD) staff finalized.
  - information on construction permits made available at www.construction.gouv.ci since January 2017.
  - auditor electronic evaluation system implemented to improve customs control.
  - decree to formalize management framework for co-financed projects passed; in 2016, 8 (eight) World Bank projects were tied into the IFMIS for direct execution and management beginning in 2017.

### Economic and financial program objectives for 2017–19
- Program supports the 2016–20 PND aiming to make Côte d’Ivoire an emerging country by 2020 and lower the poverty rate by half.
- Key program projections and targets:
  - budget deficit: 4.5 percent of GDP in 2017 versus 3.7 percent as projected initially; lowered gradually to 3.0 percent of GDP in 2019.
  - inflation: should remain below 3 percent in accordance with the WAEMU regional norm.
  - external current account deficit: should be under control at less than 3 percent of GDP for the 2017–19 period.
  - external overall balance: should show a surplus beginning in 2017.

### Macroeconomic framework and growth outlook
- Growth targets (2018–2020): annual average rate of roughly 8.2 percent.
  - sectoral average annual growth rates expected:
    - industry: about 10.7 percent,
    - services: about 8.8 percent,
    - agriculture: 6.4 percent (benefits from the National Agriculture Investment Program (PNIA) and the food agriculture stimulus program).
- Investment rate target: rise from 21.5 percent of GDP in 2017 to 23.2 percent in 2020.
  - private investment: up from 14.1 percent in 2017 to 15.3 percent in 2020.
  - private sector share, including PPPs: should reach 70 percent in 2020.
- 2017 growth projection: 8.5 percent, driven by a rebound in agriculture and a strong energy sector.
  - agriculture: rebound of export agriculture and performance of food agriculture (PNIA).
  - industry: dynamism of construction and public works, development of manufacturing industries, large energy investments, new industrial zones, support for SMEs.
  - services: benefits from agriculture and industry performance; robust transportation, trade, banking and financial activity and development of the digital economy.
- Inflation in 2017: projected annual average of 1.7 percent (below the WAEMU regional norm).
  - Moderate price increases expected to benefit from higher local food supply and smoother transportation of people and goods.
- Current account projection for 2017:
  - should show a deficit of 1.8 percent of GDP in 2017 versus 1.1 percent in 2016.
  - trade balance: expected to continue showing a surplus despite lower cocoa prices and higher imports due to buoyant economic activity.
  - deficit of primary and secondary revenue balance: should be higher than in 2016.

*IMF staff report content (chapter extract).*

### 28. Money supply should increase by 12.2 percent in 2017. This increase would stem mainly

### cr17165 - 28. Money supply should increase by 12.2 percent in 2017. This increase would stem mainly

### Monetary outlook
- Money supply should increase by 12.2 percent in 2017.  
- This increase would stem mainly from the increase in domestic lending due to buoyant private sector activity.  
- Net external assets should be lower in 2017.

### Fiscal policy objectives (2017–19)
- Meet the fiscal deficit target of 3 percent of GDP in 2019 by curbing negative effects of external and domestic shocks.  
- Specific objectives:
  - Maintain a credible fiscal policy consistent with domestic and external equilibrium by controlling operating expenses and re-prioritizing investment expenditures consistent with PND targets, taking into account new fiscal constraints related to domestic and external shocks.
  - Pursue tax administration reforms and adopt tax policy measures to improve collection performance to fund government programs on a priority basis using domestic resources.
  - Continue fiscal regulation by aligning credit consumption with the pace of revenue collection to comply with established fiscal balances.

### Expenditure control and priorities
- Harness current expenditures to achieve the fiscal deficit target while meeting social and infrastructure needs:
  - Update and implement the wage bill management strategy in 2017 to reflect agreements reached for union claims. Efforts to reinstate labor peace and promote resumption of work amount to CFAF 17.5 billion (0.07 percent of GDP) and will impact the budget starting in 2018.
  - Continue gradual reduction of the wage bill to tax revenue ratio by strictly applying the wage bill management strategy.
  - Hiring priorities: education and health sectors; hiring elsewhere limited to needs, with no more than one person hired for every two that leave.
  - Continue annual employee rating system using the Integrated Civil Service Management System (SIGFAE) as a basis for promotions.
  - Strengthen framework for using special procedures; apply Order No. 178/MEF/CAB-01/20 of March 13, 2009 on advances; wages to continue being paid using payment orders.
  - Investment expenditures in 2017 to be prioritized by strategic sector, project maturity, and consistency with the PND; focus on counterparts of projects funded by technical and financial partners and pursue budget support from partners.
  - Pro-poor spending in 2017 projected at 2070.1 billion CFAF (8.8 percent of GDP) versus 2014.8 billion in 2016 (9.4 percent of GDP) due to downward revisions of fiscal revenues; priority sectors: education, health, rural electrification, village water systems, subsistence agriculture, and job creation.

### Revenue mobilization and tax policy measures
- Plans to raise fiscal revenue by 0.2 percent of GDP in 2018 and by 0.2 percent of GDP in 2019 through operational measures and organizational reforms to broaden the tax base and improve domestic revenue collection.
- Short-term operational measures include:
  - Perform the investment code study to streamline exemptions.
  - Expand electronic procedures to taxpayers with turnover less than 200 million and set up mobile money tax payments, especially for the land tax.
  - Resume targeted census of taxpayers.
  - Make the one-stop shop for filing financial statements operational to enter year N data from year N-1 financial statements.
  - Strengthen veracity of financial statements by requiring certified accountant approval before filing beginning in October 2017.
  - Reorganize tax supervision by implementing risk analysis.
- Customs-related measures:
  - Improve customs clearance at land borders, change procedures, and deploy two (2) new scanners at land border posts by end-2017.
  - Continue risk analysis.
  - Strengthen supervision of bonded processing systems.
  - Strengthen international transit control to improve traceability of goods in transit.
- Estimated additional resources from implementing these measures: 0.4 percent of GDP in 2018 and 0.6 percent of GDP in 2019.

### Tax policy and incentives (effective with 2018 Budget Law)
- Proposed measures:
  - Gradual elimination of VAT exemptions, except those provided by the WAEMU directive and complying with prior commitments.
  - Limit one-off exemptions to social sectors and grants; renew temporary exemptions only.
  - Implement policy to streamline tax incentives in the investment code based on recommendations from the 2012 balance sheet study; study to be performed by an internationally-renowned firm and finalized in August.
  - Improve the General Income Tax Code.
  - Strengthen regulatory and legislative framework and adopt complementary measures to better control tax optimization, evasion and avoidance.
  - Take measures on restricted capitalization.
  - Adjust excise taxes on beverages upward.
  - In 2019, revamp the minimum flat tax (IMF) and the consolidated tax (impôt synthétique).
  - Set up an automatic billing monitoring system to improve VAT yields.
  - Study possibility of reviewing the VAT adjustment threshold for businesses under the CME.
- Estimated additional resources from tax policy measures: 0.2 percent of GDP in 2018 and 0.3 percent of GDP in 2019.

### Outstanding liabilities and arrears processing
- Continue efforts to eliminate fiscal risks related to establishment of liabilities and to process outstanding liabilities and contracts for the 1993–2010 period.
  - For 2000–10 liabilities: private firms to perform a new audit of IGF findings; terms of reference to be finalized by end-November 2017 and have been validated; processing procedures to be adopted after final amounts established.
  - For outstanding contracts from 1993–2010 audited by ANRMP: early analyses revealed inconsistencies and double entries with liabilities, leading to further crosschecking.

### Fiscal shocks, supplementary budget, and 2017 fiscal outcome
- Shocks and fiscal impacts in 2017:
  - 35 percent drop in cocoa prices caused downward revision of the Single Export Duty (DUS) and registration tax (rate set at zero as of April 2017) with estimated revenue loss of 0.5 percent of GDP.
  - Higher oil prices would result in less revenue from oil products (0.6 percent of GDP) due to implementation of the automatic retail fuel price mechanism.
  - Labor claims would generate one-off additional expenditures of 0.6 percent of GDP in 2017 and recurring expenditures of at least 0.07 percent of GDP as of 2018.
- Government adjustments for 2017:
  - Adopt a draft supplementary budget and submit to the National Assembly; revise fiscal targets to reflect shocks.
  - Made adjustments of 0.5 percent of GDP on operating and investment expenditures.
  - Budget deficit should be 4.5 percent of GDP versus the original projection of 3.7 percent of GDP.
- Box summary: combined impact of changes and labor claims equals 1.8 percent of GDP in 2017; government made budget cuts amounting to 0.7 percent of GDP (primarily investment) and maintained the April 2017 tax rate on fuels for the entire year, which would bring about a 0.1 percent gain in GDP due to revenue from oil products.

### Financing strategy and market access
- Financing to consider private sector growth and strengthening WAEMU exchange reserves:
  - Domestic financing: decrease use of fundraising in the regional market to preserve private sector access to credit and prevent crowding out.
  - External financing: increase share to help strengthen exchange reserves by resorting to the international market and donor community.
  - For 2017, the supplementary gap should be financed essentially through budget support.

### Debt policy and public debt management (2017–19)
- Debt sustainability:
  - Latest Debt Sustainability Analysis indicates Côte d’Ivoire is ranked as having a “moderate risk” of indebtedness and remains vulnerable to negative macroeconomic shocks (exports, growth rate, US dollar exchange rate, FDI).
  - Need to avoid further concentration of maturities in the mid-2020s.
- Debt policy aims:
  - Contain increase in current value of public debt relative to GDP to minimize risk of over-indebtedness and strengthen resilience to external shocks.
  - Ensure no excessive concentration of loan maturities in the mid-2020s given grouping in 2024–28 of repayments due for the 2014 and 2015 Eurobonds.
  - Take refinancing and exchange risks into account and broaden/diversify domestic and regional creditor base; develop secondary bond market with regional institutions.
- Planned operations:
  - In Q2 2017, government plans a combined debt issuance operation (euro/dollar) in international financial markets and, if market conditions permit, liabilities management involving the 2024 and 2032 Eurobonds.
- Public debt management improvements:
  - Continue implementing 2016–18 three-year capacity-building plan for Public Debt Department, reorganized into front, middle and back office; target training areas include risk analysis and management; financial programming; macroeconomic management; medium-term debt strategy; debt sustainability analysis; medium-term expenditure framework; financial analysis; cash management; legal/economic aspects of debt.
  - Reform legal framework and procedures of the National Public Debt Committee (CNDP).

### Reorganization of Debt Management Directorate (front, middle, back office)
- Reorganization effective since March 2016; consolidated debt management activities into a single entity; procedures manual prepared.
- Organizational benefits:
  - Improved interactive connections between negotiating, planning and registering debt.
  - Transfer of government cash management activity and establishment of sub-directorate for Public-Private Partnerships (PPPs).
  - Strengthened monitoring of fiscal risks related to PPPs and public enterprise debt.
- Operational improvements:
  - Systematic consistency of debt payment schedules and fiscal revenue forecasts, including government securities issuance timeline.
  - Greater flexibility for borrowing plan linked to medium-term debt management strategy and debt sustainability analysis.
  - Capacity-building and development of new skills.
  - Accelerated expansion of debt data coverage to public sector, including public enterprises and local governments.

### Structural reforms and price adjustments
- Adjustments in key sectors to reflect international price changes:
  - Minimum farm gate price for cocoa producers lowered from CFAF 1,100/kg to CFAF 700/kg; measure affects about one-third of the population.
  - Apply the automatic retail fuel price mechanism to preserve tax revenue at minimum indicated in the 2017 Supplementary Budget Law; continue to guarantee fluctuation of the ex-SIR price according to international trends and preserve April 2017 taxable base.
  - Electricity sector: pursue efforts to maintain medium and long-term financial balance; startup of generation at the Soubré Dam and combined cycles expected to help lower medium and long-term generating costs; continue reducing technical and other losses; mobilize payment arrears owed to the sector; ensure pricing policy aligns with changes in generating costs.

*International Monetary Fund — Côte d’Ivoire country chapter (excerpts).*

### 43. The government will continue to implement fiscal reforms to upgrade the

### cr17165 - 43. The government will continue to implement fiscal reforms to upgrade the

### Fiscal reforms and public finance management
- Finalize implementing regulations for the WAEMU fiscal reform directives, including draft decrees on:
  - financial and fiscal supervision;
  - the program management charter;
  - stock accounting;
  - reform of budget execution circuits and procedures.
- Transition to program budgets:
  - Complete the design of the Budget Information System (SIB), whose main modules should be available at some time in 2017.
  - Continue interfacing between the Integrated Public Finance Management System (SIGFiP) and the Accounting Management system (ASTER) by end-December 2017 to incorporate payment into the expenditure chain computer system.
- Prepare the TOFE (Table of Government Operations) according to the 2001 Government Finance Statistics Manual (GFSM):
  - Minimum framework effective with transcription of central government financial operations according to the 2001 GFSM.
  - Ensure consistency of format for data submitted by the National Public Establishments (EPNs) and social security institutions and include them incrementally over the medium term.
  - Gradually expand scope of coverage to other public sector units beginning in end-2018.

### Public investment effectiveness (PIMA) — assessment and recommended reforms
- Implement validated recommendations from the PIMA (Public Investment Management Assessment) technical assistance, addressing:
  - (i) the framework of WAEMU program budget directives;
  - (ii) accrual and asset-based accounting;
  - (iii) the multiyear investment expenditure commitment;
  - (iv) the management of projects based on Public-Private Partnerships (PPPs).
- Reconfigure the tool for preparing the Public Investment Program (PIP) to trace PPPs during implementation; the next PIP will include data on current PPPs.
- Formalize the PIP development process by preparing and disseminating procedures manuals to strengthen transparency.
- Consider establishing a gateway among different information systems to improve links between public investment programming and budgeting tools.

Box 3 — Côte d’Ivoire: Effectiveness of Public Investments
- Context and objectives:
  - Public investment is a key priority of the 2016–20 National Development Plan.
  - Investment volume targeted to change from 6.4 percent of GDP in 2015 to 7.9 percent of GDP in 2020.
- IMF technical assistance provided from November 30 to December 13, 2016 to assess investments against the PIMA framework.
- PIMA framework assessed 15 institutions across three pillars:
  - (i) public investment planning;
  - (ii) allocation of public investments;
  - (iii) execution of public investments.
- Key findings:
  - Institutional strength in public investment management in Côte d’Ivoire was in line with that of emerging countries:
    - Of the 15 institutions reviewed, four are at the high level in emerging countries, seven are at the same level and four are relatively weaker.
    - Relatively strong areas: fiscal rules, national and sectoral planning, transparency in execution, project management.
    - Weaknesses: coordination between central and local/regional governments, PPP management, asset accounting.
  - Effectiveness assessment:
    - Côte d’Ivoire initiated a good dynamic of public investment based on a strategy supported by its PND while ensuring fiscal sustainability and transparency of investments.
    - Effectiveness is weaker in the second pillar: changeover to program budgets, multiyear budgeting, and Parliament’s or the public’s access to certain investment-related information.
- Recommendations:
  - Strengthen transparency of strategic and financial management and the institutional system for PPP projects.
  - Improve the link among the various programming and budgeting tools for public investments.
  - Provide stakeholders with an information system that strengthens project implementation management.
  - Strengthen coordination between the PND and local investment planning.
  - Improve effectiveness of financing and monitoring local government investments in anticipation of the next law on the local government financial system.

### Procurement and procurement information systems
- Continue to improve the procurement system:
  - Complete implementation of Procurement Units (CPMP) in various ministries in 2017.
  - Move procurement procedures incrementally from paper to electronic format to facilitate competition, particularly for SMEs.
  - Roll out the Integrated Procurement Management System (SIGMAP) to improve accessibility and accelerate procurement transaction processing.
  - Amend the Procurement Code as part of WAEMU directive transposition, especially regarding delegation of public services and the public project owner agent.
  - Continue to categorize companies and update the benchmark price database.

### Public enterprises, fiscal risks, and portfolio management
- Surveillance of fiscal risks related to public enterprise debt:
  - Debt stock information of all 19 companies incorporated into the public enterprise database.
  - Beginning in June 2017, produce a quarterly summary table of debt service for twelve (12) enterprises.
  - Long-term: make information available in real time through interconnection between the Public Enterprise Information and Management System (SIGEP) and the Debt Management and Analysis System (SYGADE).
  - Continue to oversee enforcement of the order on debt conditions of enterprises in the portfolio.
  - Continue to present the annual report on the economic and financial situation of enterprises in the government portfolio in the Council of Ministers and annex it to the draft government budget law.
- Reorganization of the entity in charge of the Government Portfolio to monitor public enterprises and adopt a strategic approach:
  - Expected improvements:
    - (i) Implementation of guidelines for equity stakes and management differentiated by segment, reflecting government objectives and enterprise characteristics.
    - (ii) Development of sectoral expertise to better monitor equity stakes and maintain strategic, financial and operational dialogue with enterprises.
    - (iii) Establish portfolio development strategies aligned with government sectoral priorities and performance improvement needs.
  - Portfolio managers to conduct ongoing sectoral monitoring based on predefined indicators in performance contracts.
  - Finalize performance contracts in 2017 for seven (7) enterprises including CI-Energies; gradually extend to entire portfolio.

### Divestiture and liability control
- Government divestiture plan:
  - Government portfolio: seventy-nine (79) companies — twenty-eight (28) government-owned and fifty-one (51) with government financial interest.
  - From a list of fifteen (15) public enterprises identified for restructuring, five (5) have been privatized; privatization of the remaining ten (10) should continue.
- Steps to limit creation of new liabilities:
  - Establish the Information Unit for Economic Operators (CELIOPE) to:
    - (i) provide information on the availability of budget funds;
    - (ii) provide guidance to economic operators on budget execution procedures, including procurement.
  - CELIOPE will produce an annual activity report.
- PPP fiscal-risk management:
  - Currently no PPP projects are receiving direct government guarantees on debt.
  - Plan to review all projects financed via PPPs; inventory and monitor explicit and implicit fiscal risks.
  - Actions:
    - (i) Inventory and review all PPP agreements signed by the government and companies where the government has a majority financial interest;
    - (ii) Identify PPPs with explicit and implicit fiscal risks.
  - Create a database to record direct payments and revenue guarantees for PPPs.
  - Starting in 2018, include an analysis on fiscal risks related to PPPs in the Multiyear Fiscal and Economic Programming Paper (DPBEP).
  - Government will receive technical support from the International Monetary Fund for this purpose.

### Cash management and Treasury Single Account (TSA)
- Upgrade and optimize cash management with implementation of the TSA:
  - A project team was appointed and an implementation timetable established.
  - Ongoing inventory of accounts opened in commercial banks and continued reduction in number of accounts.
  - Develop the Treasury Single Account Management System starting in September 2017.
  - TSA management should be operational by end-2018 after the experimental phase.
  - Conduct analysis to ensure consistency between the procurement plan, the commitment plan and the cash plan.

### Financial sector development and inclusion
- Continue implementation of the Financial Sector Development Strategy controlled by the Financial Sector Development Program (PDESFI) to build a stable, attractive financial sector.
- Main pillars: improve and develop the sector and improve financial inclusion.
  - Finalize and implement permanent options for restructuring the public bank portfolio and the microfinance sector.
  - Improve the business framework, strengthen transparency and availability of financial information, and develop innovative financing for SMEs.
  - Implement the National Financial Inclusion Strategy and strengthen insurance sector supervision.
  - Expected long-run outcomes: stabilize financial sector soundness and provide more financing for the economy through greater use of banks and improved access to credit for households and SMEs.
- Resizing public bank portfolio and banking soundness:
  - Of four (4) public banks in the portfolio:
    - Privatization of two (2) banks should be completed (with emphasis on enhancement and trade policy objectives).
    - One (1) will be restructured and one (1) will be strengthened.
  - Complete transfer of shares of the last bank in which the government has a minority interest by listing it on the Regional Stock Exchange (BRVM).
  - Ensure implementation of BCEAO decision on increasing minimum regulatory capital by end-June 2017 to strengthen banking system solvency.
- Recapitalization and restructuring of one public bank:
  - Government injected liquidity of CFAF 20 billion in 2016.
  - Implement restructuring and recapitalization by end-March 2018, when capital will amount to CFAF 10 billion.
- Microfinance sector:
  - Continue National Microfinance Strategy to strengthen soundness, improve governance, and boost saver confidence.
  - Finalize UNACOOPEC-CI recovery plan and sector governance support program:
    - Recovery plan includes: (i) making the network compliant by resizing around viable banks; (ii) redefining missions of the lead organization; (iii) creating a financial institution with the lead organization; (iv) a recapitalization plan over three (3) years without external support.
  - Establish a framework to promote financial inclusion that includes users, banks, and information and communication technology companies.
- Regulatory framework and consumer protection:
  - Place the Observatory for the Quality of Financial Services in service to:
    - (i) promote transparent and comparable financial services;
    - (ii) better manage user complaints about financial services;
    - (iii) strengthen financial education.
  - Create a financial mediation system within the Observatory.
  - With the BCEAO and stakeholders, strengthen operation of the Information and Credit Bureau (BIC) by adding and increasing usage rates.
  - Continue to boost regional stock exchange activity and liquidity; strengthen insurance institutions’ role in mobilizing national savings.

### Public sector enterprise restructuring, transport, and electricity sectors
- Energy sector restructuring acceleration in 2017 (based on SIR and PETROCI audits):
  - PETROCI:
    - Net earnings in 2016 should show a surplus after the 2015 deficit.
    - Financial situation expected to strengthen in 2017 with implementation of its restructuring plan; government will pay special attention.
  - SIR:
    - Operating performances in 2016 were good.
    - Restructuring plan will convert short-term debt into long-term debt.
    - Government will guarantee repayment through a transfer of CFAF 20.07/L on the specific tax on oil products.
    - Strategy approved in 2016 provided for restructuring accumulated debts and arrears of about CFAF 368 billion (figure beginning in May 2016) by contracting a new long-term external loan guaranteed by the government.
    - Repayment financed using some proceeds from the tax on oil products already allocated to SIR.
    - Tenders launched end-2016 to choose the bank and contract the loan; finalize selection of arranger institution and restructure the debt by end-December 2017.
    - Completing restructuring would reduce SIR’s financing costs and improve financial capacity.
- Transportation sector enterprise plans:
  - Air Côte d’Ivoire (ACI):
    - Fleet improvement to continue over the 2017–22 period.
    - Capital expected to climb from 63 billion in 2016 to 130 billion in 2019.
    - Financing agreement to be made with a bank pool that includes the AfDB.
    - Produce twice-yearly report on ACI’s financial situation to be submitted to the Ministry in charge of the Government Portfolio beginning in end-June 2017.
  - SOTRA:
    - Net earnings should show a surplus in 2016.
    - Business plan for 2016–20 finalized and implementation begun; government will monitor carefully.
    - Plan provides for acquiring 2,500 buses; for 2017, a loan agreement signed with Eximbank India to finance 500 buses.
- Electricity sector financial balance and supply improvements:
  - Despite suspension of the January 2016 rate increase, operating balance posted a surplus of CFAF 5.3 billion in 2016 versus a deficit of 39.9 billion in 2015.
  - Drivers of improvement:
    - (i) implementation of new export tariffs;
    - (ii) increase in natural gas supply with additional Foxtrot capacity, reducing need for HVO;
    - (iii) higher total yield: 79 percent in 2015 to 80.4 percent in 2016;
    - (iv) operation of CIPREL and AZITO steam cycles with no additional consumption of natural gas.
  - Current hydroelectric projects and power distribution improvements will increase supply:
    - Soubré (275 MW) hydro power plant, begun in May 2013, should be commissioned incrementally between April and July 2017.
  - Government commitments:
    - Settle unpaid bills related to central government electricity consumption after verification.
    - Implement plan to clear arrears contracted by local authorities and public establishments.
    - Facilitate implementation of a plan to clear arrears in public enterprises after verification.

*CÔTE D’IVOIRE — INTERNATIONAL MONETARY FUND*

### 61. The financial balance of the Pensioners and Civil Servants General Fund (CGRAE) should

### The financial balance of the Pensioners and Civil Servants General Fund (CGRAE) should

### CGRAE financial position and outlook
- The implementation in 2012 of the CGRAE reform re-established the Fund’s sustainability and generated a surplus of the technical management balance beginning in 2013.
- Agreements reached for claims filed by civil servants caused some measures in Decision No. 2012-303 of April 4, 2012 to be withdrawn.
- The withdrawal of those measures should lead to a lower technical balance, which would nevertheless continue to record surpluses in the long term.

### Strengthening the business environment and private sector development
- The government plans the private sector to play a major role in implementing the PND, mainly through PPPs, and to increase the industrial sector’s contribution to wealth and jobs.
- Industrialization requires improvements in:
  - the business environment,
  - competitiveness,
  - development of public-private partnerships (PPPs).
- The High Authority for Good Governance will be strengthened to:
  - fight corruption intensively,
  - harness public procurement,
  - foster public integrity, transparency and accountability,
  - strengthen governance of strategic sectors (agriculture, oil, mining, education and health).

### Key planned reforms to improve the business environment (2017–18) — Box 4
- Creating companies
  - Create online companies in Côte d’Ivoire.
  - Post information on licenses and business permits online.
  - Assign a unique identification number to companies that registered long ago to bring them into compliance.
  - Gradually change issuance of licenses and business permits from paper to electronic format.
- Border trade
  - Finalize full operation of the Cross-Border and External Trade One-Stop Shop.
  - Complete implementation of the trade information web portal.
- Contract execution
  - Shorten time frames for enforcing court decisions to 90 days.
  - Make the judicial activities module of the Commercial Court operational.
- Insolvency
  - Set up a website dedicated to publication of information on insolvency procedures and online auctions.
  - Put in place an economic support arrangement for companies in legal redress.
- Investor services
  - Put the Single Portal for investor services in place.
- Payment of taxes and fees
  - Implement electronic payment of taxes, fees and social contributions.
  - Implement online tax returns.

### Industrial policy and SME support
- The government will lower factor costs to improve private sector productivity and competitiveness through:
  - strengthening economic infrastructure (telecommunication, transportation and energy),
  - implementing the Industrial Infrastructure Management and Development Agency (AGEDI) and the Industrial Infrastructure Development Fund (FODI) to accelerate rehabilitation of the Yopougon and PK24 industrial zones,
  - constructing new industrial zones across regions to develop competitive economic centers.
- The Government-Private Sector Dialogue framework will be promoted by strengthening the Government-Private Sector Dialogue Committee (CCESP).
- SME/SMI sector modernization
  - Implement the SME development program (Phoenix program).
  - Improve SMEs’ access to procurement via new government procurement measures, including access to financing and government contracts.

### Strengthening the statistics system
- Core objectives and planned actions:
  - Implement the Statistics Master Plan provided for in the 2016–20 PND; a draft announcement from the Council of Ministers was made to support seven (7) ministries per year over three years beginning in 2017 by building human and material resource capacities.
  - Implement a permanent system to process financial statements for ongoing production of national accounts; develop an IT platform to scan and collect Statistics and Financial Declarations (DSF) electronically in the second half of 2017.
  - Implement the Improved General Data Dissemination System (SGDD-a): the National Data Summary Page (NSDP) and operator training were finalized after IMF technical assistance in the second half of 2016; online publication of the NSDP will follow.
  - Put in place a permanent agriculture statistics system; terms of reference are being prepared and should be completed in 2017; results of the Census of Farms and Farmers (REEA) should be disseminated.
  - Finalize work on changing the baseline year and implement the 2008 National Accounting System (SCN); the government authorized funding for the project, which will span the 2017–18 period.
- Quarterly National Accounts (CNT)
  - CNT upgrade continued with AFRITAC West support in January 2017.
  - An upgrade timeline was established and the CNTs up to Q1 2017 should be released before end-October 2017.

### Program funding and monitoring
- Funding strategy for 2017:
  - Budget financing requirements will be covered through sub-regional and international money and financial markets, mainly by issuing a Eurobond and by obtaining loans from the World Bank, the International Monetary Fund, the African Development Bank, the French Development Agency and the European Union.
  - Continue dynamic development of the sub-regional public debt market; Treasury securities specialists will ensure liquidity of the WAEMU secondary government securities market.
- IMF program monitoring and review timeline:
  - Quarterly monitoring by the IMF Executive Board will continue based on quantitative monitoring criteria and indicators and structural benchmarks (Tables 1 and 2) defined in the Technical Memorandum of Understanding (TMU).
  - The second semiannual review will be based on data and performance criteria as of end-June 2017 and should be completed no later than end-December 2017.
  - The third semiannual review will be based on data and performance criteria as of end-December 2017 and shall be completed on or after April 15, 2018.
- Government commitments under the program:
  - refrain from accumulating new domestic arrears and any form of advances on revenues and from contracting nonconcessional external loans other than those specified in the PAT;
  - issue public securities only through BCEAO auctions or any other form of competitive bidding on the local and WAEMU financial markets and coordinate with IMF staff on any new financing;
  - not to introduce or intensify restrictions on payments and transfers for current international transactions, introduce multiple currency practices, enter into bilateral payments agreements inconsistent with Article VIII of the IMF Articles of Agreement, or introduce or intensify import restrictions for balance of payments purposes;
  - adopt any new financial or structural measures necessary for the success of its policies, in consultation with the IMF.

### Quantitative indicators, performance criteria (PCs), and indicative targets (ITs)
- TMU effective date: June 1, 2017.
- Definition scope:
  - “Government” includes the central government of Côte d’Ivoire, CNPS, CGRAE, and Treasury operations for public companies in liquidation; excludes local governments, BCEAO, and other government-owned entities with separate legal status.
  - “Public entities” include majority government-owned companies, SIR, and other public entities receiving earmarked tax and quasi-tax revenues.
- PCs set for December 31, 2016; June 30, 2017; December 31, 2017 (same variables are ITs for March 31, 2017 and September 30, 2017).
- PCs include:
  - a floor for the overall fiscal balance (including grants);
  - a ceiling on net domestic financing (including issuance of CFA securities);
  - a ceiling on the present value of new external debt (maturity > 1 year) contracted by the central government;
  - a zero ceiling on accumulation of central government new external arrears;
  - a zero ceiling on accumulation of central government new domestic arrears.
- ITs include:
  - a floor for government tax revenues;
  - a ceiling on expenditures by treasury advance;
  - a floor for “pro-poor” expenditures;
  - a floor for net reduction of the stock of amounts payables;
  - a floor for the basic primary balance.
- Measurement conventions:
  - PCs, ITs and adjustors are calculated as cumulative change from January 1, 2016 for 2016 targets and from January 1, 2017 for 2017 targets.
  - Treasury advances: cumulative quarterly ceilings represent 10 percent of quarterly budget allocations (excluding externally financed expenditures, wages, subsidies and transfers, and debt service).
- Definitions:
  - Total tax revenue: all fungible tax revenue (excluding earmarked revenue) collected by DGI, DGTCP and DGD, as defined in TOFE.
  - Pro-poor expenditures: derived from the detailed list in the SIGFIP system.
  - Primary basic balance: fiscal revenue (tax and nontax revenue, excluding grants) – {Total expenditure + Net lending – Interest payments – Externally financed capital expenditure (on a payment order basis for all expenditure items)}.

*Source: IMF staff and Ivoirien authorities (Technical Memorandum of Understanding and Memorandum of Economic and Financial Policies, June 1, 2017).*

### 10. The overall fiscal balance is the difference between the government’s fiscal revenue

### 10. The overall fiscal balance is the difference between the government’s fiscal revenue

### Definition of the overall fiscal balance
- Overall fiscal balance = {Fiscal revenue (tax and nontax) + (Grants – World Bank budget support grants – AfDB budget support grants)} – {Expenditure + Net lending (on a payment order basis)}.
- Government expenditures are defined as expenditures for which payment orders have been issued and taken over by the Treasury.
- Grants exclude World Bank and African Development Bank budget support program grants (these are subtracted in the formula).

### F. Net Domestic Financing (PC)
- Net domestic financing (NDF) of the central government is defined as the sum of:
  - Variation of banking system’s net claims on the government (TOFE) (including C2D deposits);
  - Net non-bank domestic financing (excluding the net variation of amounts payable and clearance of obligations to local governments and national public entities (NPE)) (including proceeds from privatizations and sales of assets, and of correspondent sub-accounts of the Treasury);
  - Borrowing denominated and serviced in Francs of the Financial Community of Africa (CFAF);
  - Financing margin of CFAF 10 billion.
- Formula: Net domestic financing (NDF) = Variation of banking system’s net claims on the government (TOFE) + Net non-bank domestic financing (excluding the net variation of amounts payable and clearance of obligations to local governments and national public entities (NPE)) + Borrowing denominated and serviced in Francs of the Financial Community of Africa (CFAF) + Financing margin of CFAF 10 billion.
- Ceiling provisions:
  - Ceiling includes a margin of CFAF 10 billion above the net cumulative flow projected for each quarter.
  - Ceiling does not apply to new agreements for the restructuring of domestic debt or the securitization of domestic arrears.
  - For any new borrowing above a cumulative amount of CFAF 50 billion, the government undertakes to issue government securities only by auction through the BCEAO or by competitive bidding (appel d’offres compétitif) on the WAEMU financial market registered with the Regional Council for Public Savings and Financial Markets (CREPMF), in consultation with Fund staff.

### Adjustor for the NDF performance criterion
- The NDF ceiling will be adjusted upward by the full amount of the difference between the effectively disbursed and the projected budget support from the European Union, the World Bank and the African Development Bank projected at CFAF 115.2 billion in 2017 (MEFP Table 1).

### G. External Debt (PC) — Definition and scope
- Debt definition follows paragraph 8(a) of the Guidelines on Public Debt Conditionality in Fund Arrangements (IMF Executive Board Decision No. 15688-(14/107), adopted December 5, 2014).
- “Debt” means a current (not contingent) liability created under a contractual arrangement that requires future payments of assets or services; primary forms include:
  - (i) loans (advances of money, deposits, bonds, debentures, commercial loans, buyers’ credits, repurchase agreements, official swap arrangements);
  - (ii) suppliers’ credits (deferred payments for goods/services);
  - (iii) leases (present value at inception of lease payments expected during agreement, excluding operations/repairs/maintenance).
- Under this definition, arrears, penalties, and judicially awarded damages arising from failure to make payment under a contractual obligation that constitutes debt are debt.

### External debt specific definitions and exclusions
- External debt is defined as debt contracted or serviced in a currency other than the franc of the Financial Community of Africa (CFAF).
- The performance criterion (PC) on the present value (PV) of new external debt contracted by the central government applies to all external debt (whether or not concessional) contracted or guaranteed, including commitments contracted or guaranteed for which no value has been received.
- Exclusions from this PC:
  - normal import-related commercial debts having a maturity of less than one year;
  - rescheduling agreements;
  - IMF disbursements.
- For program monitoring, external debt is deemed contracted or guaranteed at the date of its approval by the government of Cote d’Ivoire (Council of Ministers).
- For euro bonds, amount deemed contracted = amount subscribed/purchased at the end of the subscription/purchase period as specified in the final clauses of the exchange.
- For program purposes, the value in U.S. dollars of new external debt of 2017 is calculated using the average exchange rate for January 2017 in the IMF’s International Financial Statistics (IFS) database.

### PV calculation methodology and concessionality threshold
- PV of new external debt is calculated by discounting all future debt service payments (principal and interest) using a program discount rate of 5 percent, taking account of all loan conditions (maturity, grace period, payment schedule, front-end fees, management fees).
- PV is calculated using the IMF model for this type of calculation.
- Concessionality rule: A debt is considered concessional if on the date contracted the ratio of its present value to its face value is less than 65 percent (equivalent to a grant element of at least 35 percent).
- For loans with grant element zero or less than zero, PV is set equal to face value.

### Reference rates and margins for variable-rate debt
- For variable interest rate debt of the form reference rate + fixed margin, PV is calculated on the basis of the program reference rate plus a fixed margin (in basis points) specified in the loan agreement.
- Program reference and margins:
  - Program reference rate for the US$ six-month LIBOR is 3.04 percent and will remain unchanged until December 31, 2017.
  - Margin between the euro six-month LIBOR and the US$ six-month LIBOR is -300 basis points.
  - Margin between the yen six-month LIBOR and the US$ six-month LIBOR is -300 basis points.
  - Margin between the pound sterling six-month LIBOR and the US$ six-month LIBOR is -250 basis points.
  - For interest rates in currencies other than the euro, yen and pound sterling, the margin vis-à-vis the US$ six-month LIBOR is -250 basis points.
- When the variable rate is linked to a reference rate other than the US$ six-month LIBOR, a margin corresponding to the difference between the reference rate and the US$ six-month LIBOR (rounded to the closest 50 basis points) is added.
- For the period January 1, 2018 to December 31, 2018 these rates will be fixed and will remain fixed based on the fall 2016 edition of World Economic Outlook (WEO).

### Adjustors for the performance criterion on the PV of new external debt
- Program ceiling adjustments:
  - The program ceiling applicable to the PV of new external debt is adjusted upward up to a maximum of 5 percent of the ceiling on the PV of external debt where differences vs. the PC are caused by variation in financing conditions (interest, maturity, grace period, payment schedule, front-end fees, management fees). The adjustor may not be applied when differences result from an increase in the face value of the total debt contracted or guaranteed.
  - The program ceiling applicable to the PV of new external debt is adjusted upward by the full amount of the new Eurobond issued by the government up to US$ 1.2 billion.
  - The ceiling will exclude external borrowing which is for the sole purpose of refinancing existing public sector debt and which helps to improve the profile of public sector debt.
  - The program ceiling applicable to the PV of new external debt is adjusted upward by the total amount of the new external debt contracted or guaranteed by the government for the purpose of restructuring the debt of Société Ivoirienne de Raffinage (SIR), up to an equivalent of CFA francs 368 billion, or US$ 596 million, calculated at the January 2017 average exchange rate (CFAF 618.01).

### Government notification and borrowing plan
- The authorities will inform IMF staff of any planned external borrowing and the conditions on such borrowing before loans are contracted or guaranteed by the government.
- The current government borrowing plan is summarized in Table 1 (July 2016–December 2017). Table 1 uses average exchange rates for July 2016 for July-December 2016, and January 2017 for January-June 2017 and January-December 2017.

- Selected figures from Table 1 (Millions of US dollars):
  - Total external debt contracted or guaranteed:
    - July-December 2016: Volume of new debt, US$ million = 731.0; PV of new debt, US$ million = 522.2.
    - January-June 2017: Volume of new debt, US$ million = 2,475.9; PV of new debt, US$ million = 1,528.8.
    - January-December 2017: Volume of new debt, US$ million = 3,328.0; PV of new debt, US$ million = 2,043.5.
  - By source of debt financing:
    - Concessional debt:
      - July-December 2016: Volume = 412.6; PV = 239.4.
      - January-June 2017: Volume = 2,152.5; PV = 1,224.4.
      - January-December 2017: Volume = 2,659.6; PV = 1,453.6.
      - Multilateral debt (subset of concessional debt):
        - July-December 2016: Volume = 400.8; PV = 243.1.
        - January-June 2017: Volume = 1,653.6; PV = 929.6.
        - January-December 2017: Volume = 1,909.1; PV = 1,062.8.
      - Bilateral debt (subset of concessional debt):
        - July-December 2016: Volume = 11.8; PV = 5.3.
        - January-June 2017: Volume = 498.9; PV = 294.8.
        - January-December 2017: Volume = 750.5; PV = 390.7.
    - Non-concessional debt:
      - July-December 2016: Volume = 318.4; PV = 282.8.
      - January-June 2017: Volume = 323.4; PV = 304.0.
      - January-December 2017: Volume = 668.4; PV = 590.0.
      - Semi-concessional debt (subset):
        - July-December 2016: Volume = 118.4; PV = 82.8.
        - January-June 2017: Volume = 323.4; PV = 304.0.
        - January-December 2017: Volume = 581.0; PV = 502.5.
      - Commercial terms:
        - July-December 2016: Volume = 200.0; PV = 200.0.
        - January-June 2017: Volume = 0.0; PV = 0.0.
        - January-December 2017: Volume = 87.5; PV = 87.5.
  - Uses of debt financing (Volume / PV):
    - Infrastructure:
      - July-December 2016: 205.4 / 118.4.
      - January-June 2017: 1,748.2 / 1,111.8.
      - January-December 2017: 2,387.5 / 1,491.8.
    - Social expenditure:
      - July-December 2016: 0.0 / 0.0.
      - January-June 2017: 0.0 / 0.0.
      - January-December 2017: 125.4 / 47.2.
    - Budget financing:
      - July-December 2016: 0.0 / 0.0.
      - January-June 2017: 371.5 / 219.5.
      - January-December 2017: 371.5 / 219.5.
    - Other:
      - July-December 2016: 525.6 / 403.8.
      - January-June 2017: 356.2 / 197.6.
      - January-December 2017: 43.7 / 285.0.
- Notes from table:
  - Present value of debt is calculated using terms of individual loans and applying the 5 percent program discount rate.
  - Concessional debt is defined as debt with a grant element that exceeds the minimum threshold of 35 percent.
  - Semi-concessional = debt with a positive grant element which does not meet the minimum grant element.
  - Commercial = debt without a positive grant element; for commercial debt PV = nominal/face value.

### H. External Payments Arrears (PC)
- External arrears correspond to nonpayment of any interest or principal amounts on their due dates (taking into account any contractual grace periods).
- This PC applies to arrears accumulated on external debt contracted by the government and external debt guaranteed by the government for which the guarantee has been called by the creditors.
- This performance criterion is monitored on a continuous basis.

### I. Amounts Payable, Including Domestic Payment Arrears (IT and PC)
- “Amounts payable” (or “balances outstanding”) include domestic arrears and floating debt and represent the government’s overdue obligations.
- Defined as expenditures assumed (prise en charge) by the public accountant, but yet to be paid.
- Obligations include:
  - (i) bills due and not paid to nonfinancial public and private companies;
  - (ii) the domestic debt service.
- Domestic payment arrears:
  - Arrears to suppliers = overdue obligations to nonfinancial and private companies for which the payment delay exceeds the regulatory delay of 90 days.
  - Arrears on domestic debt service = debt service obligations for which the payment delay exceeds 30 days.
- Floating debt:
  - Balances outstanding for which the payment delay does not exceed the regulatory delay (90 days for debt to nonfinancial companies and 30 days for debt service).
- Balances outstanding are broken down by payer and type, as well as by maturity and length of time overdue:
  - For amounts owing to nonfinancial companies: < 90 days, 90–365 days, > 1 year.
  - For amounts owing to financial institutions: < 30 days, 30–365 days, > 1 year.
- For program purposes, the ceiling on the accumulation of new domestic payments arrears is zero.

### Memorandum items
- A. Net Banking System Claims on the Government:
  - Defined as the difference between government debts and government claims vis-à-vis the central bank and commercial banks (including the C2D deposits).
  - Scope is that used by the BCEAO and is the same as that shown in the Net Government Position (NGP) (including the C2D deposits).
- B. External Financing (Definitions):
  - Project grants = non-repayable money or goods intended for financing a specific project.
  - Program grants = non-repayable money or goods not intended for financing a specific project.
  - Project loans = repayable money or goods received from a donor to finance a specific project on which interest is charged.
  - Program loans = repayable money or goods received from a donor and not intended for financing a specific project on which interest is charged.
- C. Fuel tax revenues:
  - Defined as revenues from oil products taxation collected by the General Directorate of Customs (DGD) as reported in the fiscal reporting table (TOFE) under the line “taxes sur les produits pétroliers”.
- D. Program Monitoring and Data Reporting:
  - A quarterly assessment report on monitoring of the quantitative performance criteria, indicative targets, and structural benchmarks will be prepared by the authorities no later than 45 days following the end of each quarter.
  - The government will report the information specified in Table 3 no later than 45 days following the month-end or quarter-end, except where timing is specified otherwise in Table 3.
  - The government will report final data provided by the BCEAO within 45 days following the month-end. Information will include a complete, itemized listing of public sector assets and liabilities vis-à-vis:
    - (i) the BCEAO;
    - (ii) the National Investment Bank (Banque Nationale d’Investissement, or BNI);
    - (iii) the banking system (including the BNI).
  - The government will provide a detailed statement of payment orders and payments on IMF financing related to Ebola expenditures within 45 days of the end of each month. These expenditures are included in the government budget.
  - The authorities will consult with Fund staff on any proposed new external debt and will inform Fund staff of the signature of any new external debt contracted or guaranteed by the government, including the conditions on such debt.
  - Data on new external debt, the amount outstanding, and the accumulation and repayment of external payments arrears will be reported monthly within six weeks of the end of each month.

*Source: cr17165 - 10. The overall fiscal balance is the difference between the government’s fiscal revenue (IMF PDF).*

### 33. More generally, the authorities will report to the IMF staff any information needed for

### cr17165 - 33. More generally, the authorities will report to the IMF staff any information needed for

### Pro-poor and social spending (Table 2)
- Aggregate totals (Billions of CFA Francs, totals by year as presented):  
  - TOTAL 2014: 1,622.4  
  - TOTAL 2015: 1,770.2  
  - TOTAL 2016: 2,014.8  
  - TOTAL 2017: 2,070.1
- Selected program line items and values (Billions of CFA Francs):  
  - Agriculture and rural development (2014–2017): 140.5; 111.2; 124.0; 73.3  
  - Education (2014–2017): 818.8; 991.6; 1,179.3; 1,111.7  
  - Health (2014–2017): 228.9; 279.5; 330.4; 379.7  
  - Water and De-contamination (2014–2017): 146.6; 74.8; 58.6; 80.3  
  - Roads and Art Works (2014–2017): 138.6; 155.6; 153.8; 215.0  
  - Decentralization (excl. education, health and agriculture) (2014–2017): 54.9; 48.0; 55.1; 63.3

### Document transmittal requirements for program monitoring (Table 3)
- General timetable: Most monthly or quarterly data to be transmitted by "End of month + 45 days" or "End of quarter + 45 days" as indicated.  
- Selected data types and deadlines:  
  - Cyclical indicators: Monthly — End of month + 45 days  
  - Provisional national accounts: Annually — End of year + 9 months  
  - Fiscal reporting table (TOFE): Monthly — End of month + 45 days  
  - Budget execution report: Quarterly — End of quarter + 45 days  
  - Pro-poor expenditures: Monthly — End of month + 45 days  
  - Detailed domestic debt statement: Monthly — End of month + 45 days  
  - Detailed external debt statement: Monthly — End of month + 45 days  
  - Projected external debt service: Quarterly — End of quarter + 45 days  
  - Provisional balance of payments: Annually — End of year + 9 months (provisional); end of year + 12 months (final)

### Background and recent debt developments
- External public and publicly guaranteed external debt (central government coverage in this DSA):  
  - Total public and publicly guaranteed external debt: 22.5 percent of GDP in 2015; 22.6 percent of GDP in 2016.  
  - Projected external debt stock for 2017: 26.8 percent of GDP (reflecting authorities’ plan to issue a Eurobond).  
- Composition changes (2015 to 2016):  
  - Share of multilateral creditors increased from 24.2 percent in 2015 to 24.7 percent in 2016.  
  - Share of official bilateral creditors increased from 16.1 percent to 19.5 percent.  
  - Share of commercial creditors declined from 59.8 percent in 2015 to 55.8 percent in 2016.  
- Domestic public debt: increased from about 18 percent of GDP in 2015 to 20 percent of GDP in 2016.  
  - The rise was driven by government debt securities issued in the regional bond market (about 3.7% of nominal GDP).  
  - In 2016 government debt securities constituted more than 80 percent of government domestic liabilities.  
- Public enterprises: most recent available data show that as of end 2016, the debt stock of public enterprises amounted to 3.5 percent of GDP, of which 0.14 percent of GDP is directly guaranteed by the government. (Data preliminary while government refines the database.)

### Underlying assumptions and borrowing plans
- Macroeconomic framework assumptions: gradual convergence to a more sustainable growth path, increasing contribution of domestic demand, moderation of investment offset by increased private consumption, steady progress toward fiscal target consistent with WAEMU commitments.  
- Key macroeconomic assumptions and projections (period averages as in Text Table 2):  
  - Real GDP growth (percent): 2013-16: 8.7; 2017-2022: 6.8; 2023-28: 5.9; 2029-37: 5.5  
  - Nominal GDP (US$ billion): 2013-16: 33.8; 2017-2022: 48.6; 2023-28: 74.8; 2029-37: 131.1  
  - Current account balance (percent of GDP): 2013-16: -0.4; 2017-2022: -2.8; 2023-28: -1.7; 2029-37: -1.8  
  - Total revenue and grants (percent of GDP): 2013-16: 19.7; 2017-2022: 21.0; 2023-28: 21.7; 2029-37: 23.1  
  - Primary basic balance (percent of GDP): 2013-16: -0.5; 2017-2022: 0.3; 2023-28: 1.4; 2029-37: 1.6  
  - Overall balance (percent of GDP): 2013-16: -2.8; 2017-2022: -3.1; 2023-28: -2.5; 2029-37: -2.0
- Eurobond strategy and external financing assumption: The external DSA assumes the government would issue a Eurobond to cover its 2017 financing gap and that all existing Eurobonds would be rolled over during the DSA horizon (bullet Eurobonds rolled over in year of maturity; amortizing Eurobonds rolled over in first year of principal amortization). This implies increasing reliance on commercial debt and less on concessional loans for public investments.

### Debt strategy and management initiatives
- Medium Term Debt Strategy (MTDS) objectives:  
  - Domestic bond market: lengthen average duration of domestic debt, contribute to development of domestic bond market, reduce cost of local issuance.  
  - External debt: achieve a regular presence in international markets, limit foreign exchange risk, channel external financing primarily towards infrastructure investment.  
- Supporting initiatives: finalization of operational restructuring of the debt policy directorate (merger of external and domestic debt units), reinforcement of cash management operations, setting-up of a network of Primary Dealers to promote CFA-denominated issuance and secondary trading.

### External Debt Sustainability Analysis — main findings
- Baseline scenario: debt dynamics are sustainable.  
  - Present values (PV) of debt-to-GDP ratio, PV debt-to-exports ratio, PV debt-to-revenue ratio, and liquidity measures (debt service to exports and revenues, excluding grants) remain below debt distress thresholds under the baseline.  
  - Caveat: in 2027 the debt service-to-revenues indicator is anticipated to increase toward the threshold (2027 is the second year of principal amortization of the Eurobond issued in 2015).
- Most extreme shock scenario (combination shock hitting first two years: lower real GDP growth, exports, foreign inflation, current transfers and FDI inflows):  
  - Substantial and prolonged breaches for PV of debt-to-GDP and PV of debt-to-exports ratios occur.  
  - PV of debt-to-GDP ratio would reach 43.9 percent in 2019, before returning to more sustainable levels in 2029.  
  - PV of debt-to-exports ratio would reach 160 percent in 2019, before declining below the threshold in 2028.  
  - Debt service measures also breach thresholds under this scenario, highlighting downside risks from macroeconomic volatility.
- Alternative scenario — government assumes SIR liabilities in 2017:  
  - A long-term bank loan about US$ 600 million to restructure SIR debt is assumed, with maturity of at least 8 years and gradual amortization. PV of this loan estimated at 1.1 percent of GDP.  
  - Result: the new bank loan would worsen the debt service profile but would not change the assessment that the risk of debt distress remains moderate.

*Prepared by the International Monetary Fund and the International Development Association — June 2, 2017.*

### 11. Under the baseline scenario, in 2017 the PV of the public debt-to-GDP ratio is projected to

### cr17165 - 11. Under the baseline scenario, in 2017 the PV of the public debt-to-GDP ratio is projected to

### Baseline projections
- PV of the public debt-to-GDP ratio in 2017 is projected to reach 43.2 percent.
- The 2017 PV of total public debt reflects an increase in new medium- and long-term (MLT) debt originating from:
  - new official bilateral debt contracted (mainly Non-Paris Club debt); and
  - new commercial lending.
- The PV of the debt-to-GDP ratio:
  - declines gradually moving below 38 percent in subsequent years;
  - reaches 21.7 percent in the long run.
- The PV of the debt-to-revenue ratio:
  - starts at 218 percent in 2017;
  - gradually declines below 150 percent in 2027;
  - eventually declines below 100 percent in the long run.
- The debt service to revenue ratio:
  - deteriorates to reach 20.2 percent in 2027;
  - stabilizes around 16 percent in the long run.
- The trend reflects a gradual decline through time of both components of total public sector debt (foreign and domestic currency-denominated components).

### Stress tests and vulnerability scenarios
- Constant primary balance scenario:
  - debt indicators stabilize over the long run, except the debt service-to-revenue ratio, which would reach 31.3 percent in the long run.
- Most extreme shock scenario (real GDP growth at historical average minus one standard deviation in the first two years of the projection):
  - suggests rising public debt vulnerability across all debt burden indicators;
  - at the end of the projection horizon, the PV of debt-to-GDP ratio would reach 71 percent.
- Additional stress-test findings (selected from sensitivity tables):
  - PV of debt-to-GDP ratio (baseline projections column highlights): 26 (2017), 25 (2018), 25 (2019), 24 (2020), 23 (2021), 23 (2022), 20 (2027), 14 (2037).
  - Under export value shock (B2, PV of debt-to-exports ratio): examples include 111 (2018), 160 (2019), 152 (2020), 144 (2021), 136 (2022), 97 (2027), 49 (2037).
  - Under combination half-standard-deviation shocks (B5, PV of debt-to-GDP ratio): 32 (2018), 44 (2019), 42 (2020), 41 (2021), 41 (2022), 32 (2027), 18 (2037).
  - Debt service-to-revenue ratio baseline path: 11 (2017), 13 (2018), 15 (2019), 17 (2020), 20 (2021), 16 (2022), 20 (2027), 16 (2037) — see Table 3 for full series.

### Overall assessment and monitoring priorities
- Overall conclusion: broadly favorable picture for public debt sustainability under the baseline.
  - PV of the public debt-to-GDP ratio and PV of public debt-to-exports ratio are projected to gradually decline over time.
  - The public debt service-to-revenue ratio is more volatile and does not decline over the medium term, reflecting amortization of MLT debt.
- Priority indicator to monitor: debt service-to-revenue ratio as the key debt burden indicator to identify potential fiscal vulnerabilities arising in the medium-term.

### Policy recommendations
- Maintain sound macroeconomic policies and an effective debt management strategy to preserve a sustainable external position.
- Policies to maintain a sustainable fiscal position, including enhanced mobilization of domestic revenues, to help stabilize debt over time.
- Medium-term debt management strategy should aim to:
  - increase reliance on domestic sources of financing;
  - smooth out the pattern of debt amortization by avoiding large refinancing spikes;
  - help optimize the cost of funding of the sovereign.
- Measures to increase liquidity of primary and secondary markets for regionally issued domestic debt, such as creation of a network of primary dealers, to contribute to more cost-effective pricing of Ivoirien sovereign securities.
- Effective management and monitoring of PPPs to contain fiscal risk and contingent liabilities.

### Authorities’ views
- Authorities broadly agreed that Côte d’Ivoire’s risk of external debt distress is moderate.
- Authorities agreed on the importance of strengthening debt management, refining the database for public enterprises, mobilizing revenues in the medium term, and implementing prudent fiscal management.
- Authorities stressed that they considered the baseline macroeconomic assumptions in this DSA update to be too conservative, particularly regarding economic growth projections, which are lower than those in the baseline scenario of the 2016–20 National Development Plan.

### Key statistics (selected exact figures preserved)
- PV of public debt-to-GDP ratio: 43.2 percent (2017); below 38 percent (subsequent years); 21.7 percent (long run).
- PV of debt-to-revenue ratio: 218 percent (2017); below 150 percent (2027); below 100 percent (long run).
- Debt service-to-revenue ratio: 20.2 percent (2027); around 16 percent (long run); 31.3 percent (long run under constant primary balance scenario).
- Most extreme shock result: PV of debt-to-GDP ratio reaches 71 percent at end of projection horizon.
- Selected macro and fiscal baseline assumptions (from tables):
  - Real GDP growth (examples across periods): 8.8, 8.9, 7.7, 5.0, 4.7, 7.1, 7.2, 7.1, 6.7, 6.6, 6.3, 6.9, 5.4, 5.6, 5.7 (series as presented).
  - Government revenues (excluding grants, in percent of GDP): 17.1, 18.8, 18.4, 18.4, 18.7, 19.0, 19.3, 19.6, 20.0, 21.3, 23.4, 21.9 (series as presented).
  - PV of public sector debt (Table 3): 41.2, 43.2, 41.2, 40.6, 40.1, 39.5, 42.0, 32.2, 21.7 (selected series as presented).
  - Gross financing need (Table 3): 2.9, 6.4, 8.4, 6.5, 5.1, 4.2, 4.7, 5.5, 7.0, 6.3, 2.3 (series as presented).

*Statement by the IMF Staff Representative on Côte d’Ivoire, June 19, 2017*

### 1. The information below has become available since the issuance of the staff

### cr17165 - 1. The information below has become available since the issuance of the staff

### Eurobond placement
- In June, Côte d’Ivoire issued US$1.25 billion of 16-year bonds at a 6.25 percent interest rate and EUR 625 million of eight-year bonds yielding 5.125 percent, raising a gross total of about US$1.95 billion.
- About US$250 million was used to buy back outstanding Eurobond maturing in 2024.
- Another US$500 million was used to buy back the bond maturing in 2032.
- The net available financing for the budget deficit from the Eurobond issuances, after the buy-back operations, amount to about US$1.2 billion.

### Retail fuel price adjustment
- Retail gasoline price was reduced by about 4 percent in June 2017.
- The June reduction matched the magnitude of the price increase in May 2017.
- The adjustment followed a recent declining trend in world oil prices.

### Statement by Mr. Daouda Sembene (Executive Director for Côte d’Ivoire) and Mr. Marcellin Koffi Alle (Senior Advisor)
- Date: June 19, 2017.
- Authorities welcome constructive dialogue with Fund staff and broadly share the thrust of the staff report.
- Program supported by the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) has continued to be implemented satisfactorily despite shocks, notably:
  - the sharp fall in international cocoa prices since the last quarter of 2016, and
  - domestic tensions in early 2017.
- Authorities request augmentation of access of 25 percent of quota under the program to help meet financing needs, alongside Eurobond receipts and assistance from bilateral and multilateral partners.
- Authorities remain committed to meeting medium-term goals of fiscal sustainability, macroeconomic stability and inclusive growth.

### Recent Developments, Program Performance and Outlook
- Program performance:
  - All end-December 2016 and continuous performance criteria and structural benchmarks were met.
  - Three indicative targets (ITs) were missed, generally owing to revenue shortfalls from lower international cocoa prices.
  - At end-March 2017, all ITs were observed.
- Macroeconomic performance:
  - Real GDP growth is estimated to have solidly stood at about 8 percent in 2016, driven by strong investment and private consumption.
  - Inflation remained subdued in 2016.
- Outlook differences:
  - Authorities expect 8½ percent growth in 2017.
  - Staff projected growth rate of 7 percent for 2017.
- Social environment:
  - Agreements reached with soldiers on payment of bonuses and other measures, and most demands by civil servants’ unions settled, expected to improve outlook.

### Policies and Reforms for 2017–19

#### Adjusting fiscal policy to shocks
- Authorities committed to meet the WAEMU fiscal deficit target of 3 percent of GDP by 2019.
- For 2017, authorities agreed with staff on the need to achieve a slightly higher deficit than previously programmed.
- Adjustment measures include:
  - cuts in current expenditure and domestic capital outlays,
  - reactivation of the fuel price adjustment mechanism,
  - significant reduction of the guaranteed cocoa price for farmers.
- Revenue-boosting measures expected to yield:
  - about 0.4 percent of GDP in 2018, and
  - another 0.5 percent of GDP in 2019.
- Revenue measures include:
  - phasing out VAT exemptions,
  - rationalizing investment tax incentives and loopholes,
  - raising excise rates on beverages,
  - further improving tax administration.
- Expenditure measures include:
  - additional steps to contain the wage bill and other current expenditure,
  - reprioritizing capital outlays.

#### Public Financial Management (PFM) and fiscal risk oversight
- Steps to fully implement WAEMU’s PFM directives by 2019.
- New medium-term expenditure framework outline for five pilot ministries submitted to Parliament as part of the 2017 budget.
- Transition to the Treasury Single Account (TSA) aimed to be operational by end-2018; a project team is inventorying government accounts in commercial banks.
- Computerized systems being improved to better track payments and comply with expenditure authorization procedures.
- Measures underway to increase surveillance of fiscal risks from public enterprises and PPPs:
  - coverage of the SOEs’ debt database is being broadened,
  - signed PPPs are being reviewed with Fund TA to minimize fiscal risks.

#### Maintaining debt sustainability
- Authorities note staff assessment that the country’s risk of external debt distress remains moderate.
- Authorities reaffirm commitment to strengthen debt management to maintain debt sustainability.
- Authorities consider baseline macroeconomic assumptions in the DSA update to be too conservative, particularly growth projections, and call for a more realistic view consistent with the 2016–20 National Development Plan (NDP).

#### Strengthening the financial sector
- Recapitalization plan for CNCE, the public savings bank, submitted to the regional Banking Commission.
- Liquidity position of the BNI enhanced following recent actions.
- Privatization of government’s stakes in two smaller public banks is underway.
- Most banks have complied with the BCEAO’s new minimum bank capital requirement of FCFA 10 billion ahead of the mid-2017 deadline.
- Authorities continue to implement the financial development strategy with the BCEAO to improve financial inclusion.

#### Advancing structural reforms
- Commitment to improve the business climate and support objectives under the 2016–20 NDP.
- Initiative to introduce electronic operations to simplify administrative procedures in tax, land registry, and construction permits.
- Study to streamline the investment code to be completed by end-September.
- Past reforms such as the inception of a one-stop shop will be complemented with additional measures to ease business creation.
- Measures to improve governance and fight corruption, including better control of public procurements and anticorruption campaigns.
- Reforms to encompass electricity and public enterprise sectors:
  - efforts to bring financial viability to the electricity sector, including clearing central administration’s arrears and price adjustment for domestic consumption and exports,
  - efforts underway to bring financial viability to major public enterprises: SIR, PETROCI, and SOTRA.

### Conclusion
- Despite adverse domestic and external conditions, Côte d’Ivoire has continued implementing its economic and financial reform program and sustained strong growth and program performance.
- Authorities are confident that the policy measures in their Fund-supported program will help weather shocks and improve the fiscal and economic outlook.
- Authorities request Board support for:
  - completion of the first review under the ECF and the EFF arrangements, and
  - the authorities’ request for modification of performance criteria and augmentation of access.

*IMF staff report update and statement by Ivorian authorities included in the content unit.*

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_Source: https://www.imf.org/-/media/files/publications/cr/2017/cr17165.pdf_