## _cr06107

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---

### Executive summary — performance and program adjustments
- Performance under the PRGF-supported program has been good and all quantitative and structural performance criteria for the fifth review were observed.
- Authorities request an extension of the arrangement until September 30, 2006 to ensure sufficient time to complete the sixth review and to allow the final disbursement within the arrangement period.
- Conditionality for the sixth and final review was approved at the conclusion of the fourth review; no modifications proposed, but program adjusters were amended to allow the spending of all resources freed up under the MDRI in 2006.
- Staff supports completion of the fifth review and extension of the arrangement period.

### Recent macroeconomic developments and outlook
- Growth and inflation:
  - Real GDP grew by an estimated 7½ percent in 2005, driven by record cereal and cotton harvests that more than offset a slowdown in other sectors.
  - Inflationary pressures began to ease in September 2005 as food and domestic gasoline prices retreated from record highs; core inflation remained low.
  - CPI (end of period) projected at 2.0 percent for 2006 (Proj.).
- External sector and risks:
  - The external terms of trade fell by 31 percent in 2005, contributing to an increase in the external current account deficit of 1.6 percent of GDP.
  - Current account balance, excluding current official transfers, projected at -11.3 percent of GDP in 2006 (Proj.).
  - Main risks: renewed weakening of the world cotton price; strengthening of the euro (to which the local currency is pegged); further increase in the world oil price; recurring threat of drought.
- Money and credit:
  - Credit to the economy expanded rapidly during the first nine months of 2005, primarily short-term credit to support commercial and industrial activity.
  - Non-performing loan ratio at end-September 2005 appeared little changed relative to end-2004.

### Program implementation and 2005 fiscal outcomes
- All structural performance criteria under the program were observed.
- Fiscal outcomes for 2005 (Est.):
  - Revenue: 12.6 percent of GDP
  - Expenditure and net lending: 20.6 percent of GDP
  - Overall balance (excluding grants): -8.0 percent of GDP
  - External financing: 8.0 percent of GDP
  - Grants (of external financing): 4.1 percent of GDP
  - Domestic financing: -0.1 percent of GDP
- The fiscal deficit for the first nine months of 2005 was larger than targeted because of an acceleration of expenditure authorizations for the domestically-financed public investment program and, to a lesser extent, nonwage recurrent outlays; many of these expenditures were not executed and the cash-based deficit remained consistent with the quantitative performance criterion on net domestic financing.

### Macroeconomic framework and projections for 2006
- Growth and prices:
  - Real GDP projected to slow to 4.4 percent in 2006 (Proj.).
  - CPI (end of period) projected at 2.0 percent for 2006 (Proj.).
- External sector:
  - Current account balance, excluding current official transfers: -11.3 percent of GDP in 2006 (Proj.).
  - Overall balance of payments deficit projected to decline with stronger cotton export volumes and higher official capital and financial inflows.
- Key projected indicators (selected table entries, 2006 Proj. unless noted):
  - World cotton price: 59.5 US$ cents per pound
  - Average petroleum spot price: 61.8 US$ per barrel
  - Reserves in months of imports of goods and services: 4.7

### Fiscal policy for 2006 — composition and financing
- Fiscal projections for 2006 (Prog./Proj. where shown):
  - Revenue: 13.3 percent of GDP (Prog.); 13.3 percent of GDP (Proj.)
  - Expenditure and net lending: 22.4 percent of GDP (Prog.); 22.3 percent of GDP (Proj.)
  - Current expenditure: 12.5 percent of GDP (Prog.); 11.9 percent of GDP (Proj.)
  - Wages and salaries: 5.1 percent of GDP (Prog.); 4.7 percent of GDP (Proj.)
  - Capital expenditure: 12.4 percent of GDP (Prog.); 10.5 percent of GDP (Proj.)
  - Overall balance (excluding grants): -10.7 percent of GDP (Prog.); -9.0 percent of GDP (Proj.)
  - External financing: 6.0 percent of GDP (Prog.); 8.8 percent of GDP (Proj.)
  - Grants (of external financing): 3.4 percent of GDP (Prog.); 4.8 percent of GDP (Proj.)
  - Domestic financing: 0.4 percent of GDP (Prog.); 0.4 percent of GDP (Proj.)
  - Financing gap: 4.5 percent of GDP (Prog.); 0.0 percent of GDP (Proj.)
- Fiscal priorities and measures:
  - The fiscal deficit for 2006 (excluding grants) is projected at 9 percent of GDP and almost entirely financed by net external flows.
  - Revenue projected to rise to just over 13 percent of GDP, buoyed by rebound in nonagricultural sectors.
  - Expenditures programmed to increase to just over 22 percent of GDP, mainly for externally-financed capital projects and transfers to local governments linked to municipal reform.
  - Wage bill budgeted to increase by about 7½ percent in nominal terms (remaining constant relative to GDP); about half of the increase for new staff (health, education, financial control, judiciary), remainder for promotions and incentives for teachers and health workers to relocate to rural areas.
  - Budget contains CFAF 18 billion (0.6 percent of GDP) for the fuel subsidy to SONABEL and CFAF 2 billion for increased provisions for food security.

### The MDRI and use of debt relief
- MDRI impact and program response:
  - Debt relief under the MDRI would reduce debt ratios well below the policy-based indicative thresholds of the low income debt sustainability framework.
  - Potential flow relief under the MDRI in 2006, including relief from the Fund, IDA and AfDB, is estimated at CFAF 10 billion (0.3 percent of GDP).
  - The 2006 program contains an adjuster that accommodates the spending of all resources freed up under the MDRI in 2006.
  - The program also accommodates additional spending of up to another CFAF 25 billion (0.6 percent of GDP) if the authorities receive budget support in excess of projected amounts.
  - Assumptions: MDRI relief from IMF and AfDB starts beginning-2006, and mid-2006 for relief from IDA. MDRI relief from the Fund became effective in January 2006. Relief from IDA and AfDB has not been finalized.
- Authorities signaled caution on new borrowing to ensure debt sustainability despite sizable expenditure needs.

### Medium-Term Expenditure Framework (MTEF) and PRSP linkage
- MTEF approach and reform:
  - Authorities will begin work on the 2007–09 MTEF in support of the updated PRSP.
  - Proposed three-tier expenditure framework:
    - Tier 1: expenditures needed to achieve the goals of the PRSP (assuming no capacity and resource constraints).
    - Tier 2: expenditures that could be effectively undertaken given absorptive capacity.
    - Tier 3: expenditures consistent with available resources (forms basis for the proximate budget).
  - The third tier would be adjusted for more spending during the year if additional budget support becomes available; the PRSP would identify measures to remove constraints to raise spending capacity toward PRSP objectives.

### Cotton sector, financial sector, and energy pricing
- Cotton sector:
  - Ginning activities of the record 2005/06 cotton crop are underway and projected to result in a 16 percent increase in cotton fiber production to more than 300,000 tons.
  - With the increase in world cotton prices since end-2004, the financial position of cotton companies has improved; companies may realize losses in 2006 unless world prices rise further. Staff estimates companies combined would realize modest profits in 2006.
- Financial sector:
  - Available data indicate commercial banks have so far survived the external terms of trade shock without a noticeable deterioration in their balance sheets, but banks continue to have difficulty meeting all prudential requirements.
  - Two of the three cotton ginning companies have repaid all loans related to the 2004/05 cotton crop; the third expects to repay its outstanding balance in the first half of 2006.
  - Supervisory authorities were generally satisfied with the quality of commercial bank balance sheets and did not view some noncompliance with prudential regulations as indicative of systemic weakness.
- Energy pricing and subsidies:
  - Authorities maintained petroleum-based taxes and implemented the monthly automatic pricing mechanism linking domestic retail petroleum prices to world prices.
  - The subsidy to SONABEL nearly tripled in three years, reaching CFAF 18 billion (0.6 percent of GDP) in 2005.
  - Authorities will not commit to an automatic adjustment mechanism in 2006 to link electricity tariffs to energy costs, but reiterated commitment to increase electricity tariffs in 2006 in the context of the power-sector strategy agreed with development partners.
  - Authorities will take additional measures, as necessary, to ensure that SONABEL meets all its financial obligations in 2006 without recourse to support from the budget beyond the CFAF 18 billion.

### Structural reforms, business climate, and governance
- Structural performance:
  - Structural performance criteria met, including fiscal controls by the large taxpayer unit (over 100 enterprises by end-June versus benchmark of 60) and launch of a census of large and medium-sized enterprises ahead of schedule.
  - Customs Directorate adopted instructions for customs valuation and established a unit to monitor imports benefiting from tax and customs exemptions.
  - Fiscal transparency steps: submission of general balance sheets of the Central Accountant of the Treasury, the General Spending Accountant, and the General Revenue Accountant to the Auditor General; 2004 audited public accounts submitted to the National Assembly.
- Business climate challenges and reforms:
  - World Bank rated Burkina Faso’s business environment 154 out of 155 countries surveyed.
  - Reforms underway: CEFORE one-stop shop for investors (from January 2006 to approve a business license in no more than seven days), plans to amend labor code, revise Investment Code to enhance incentives while reducing revenue losses, increase courts and magistrates, and strengthen public procurement procedures.
- Privatization and sector participation:
  - Authorities negotiating with an investment bank to manage privatization of ONATEL, expecting to sell 51 percent before end-2006; ONATEL’s monopoly on fixed-line service legally ended on January 1, 2006.
  - Government moved ahead with establishing a new housing bank, taking an initial majority position; state controls 52 percent of shares, which it intends to reduce to 25 percent before end-2006.

### Program monitoring, performance criteria, and reporting requirements
- Key monitoring and performance criteria highlights:
  - Ceilings on net domestic financing (cumulative change from January 1, 2005 onward): CFAF 4.2 billion at September 30, 2005; CFAF 8,9 billion at December 31, 2005; CFAF 14.8 billion at March 31, 2006 (from January 1, 2006 onward).
  - Nonaccumulation of domestic payments arrears: continuous performance criterion.
  - Nonconcessional external debt contracted or guaranteed: grant element of at least 35 percent required; continuous performance criterion.
  - Indicative ceilings/floors (cumulative from January 1, 2005 onward), selected:
    - Ceiling for cumulative basic deficit: CFAF 38.8 billion at June 30, 2005 (indicative); CFAF 56.4 billion at September 30, 2005 (indicative); projected CFAF 84.7 billion at December 31, 2005.
    - Floor for total government revenue: CFAF 177.6 billion at June 30, 2005; CFAF 272.1 billion at September 30, 2005; projected CFAF 377.9 billion at December 31, 2005.
    - Ceilings for current expenditure and wage bill (indicative targets): current expenditure ceiling CFAF 167.1 billion and wage bill ceiling CFAF 69.7 billion at June 30, 2005; current expenditure CFAF 253.2 billion and wage bill CFAF 105.6 billion at September 30, 2005.
- Reporting requirements (selected deadlines):
  - Monthly government flow-of-funds table (TOFE) and 13 appendix tables: monthly within six weeks following the end of each month.
  - Monthly data on external debt stock and service: within four weeks following the end of each month.
  - Monthly disaggregated consumer price indices: within two weeks following the end of each month.
  - HIPC special account reporting: monthly within three weeks following the end of each month.

### Staff appraisal, recommendations and relations with the Fund
- Staff appraisal:
  - Macroeconomic management has remained strong despite difficult external environment; all quantitative and structural performance criteria for the fifth PRGF review were observed.
  - The 2006 budget provides for increased expenditures in support of economic growth and improved social services; the fiscal deficit is almost entirely financed by highly concessional donor resources, mostly grants.
  - Debt relief under the MDRI will provide resources for implementing the PRSP and will significantly reduce the country’s debt burden; the 2006 program accommodates full utilization of resources freed up in 2006 from the MDRI and can accommodate further spending if donor budget support exceeds projections.
- Recommendations:
  - Use of resources freed up under the MDRI beyond 2006 should be considered in the context of the upcoming PRSP and supporting MTEF for 2007–09.
  - Authorities should continue to seek financing on highly concessional terms, preferably grants, to avoid a return to excessive debt.
  - Further structural priorities: accelerate preparation of utilities for private-sector participation; move toward flexible electricity tariffs that promote efficiency, investment, and cost recovery; continue civil-judicial, labor-market, and business-registration reforms to improve the business climate.
- Relations going forward:
  - Authorities wish to maintain a close policy dialogue with the Fund after the current PRGF arrangement and are considering a low-access successor PRGF arrangement versus an arrangement under the Fund’s Policy Support Instrument; appropriate course to be discussed after the Ex Post Assessment.

### Selected quantitative highlights (preserving source table values)
- GDP at constant prices (annual percentage change): 2005 (Est.): 3.5; 2005 (Prog.1/): 7.5; 2006 (Proj.): 4.4
- Consumer prices (end of period): 2005 (Est.): 2.0; 2005 (Prog.): 4.5; 2006 (Proj.): 2.0
- Broad money (M2 growth): 2005 (Est.): 5.3; 2005 (Prog.): 6.0; 2006 (Proj.): 7.3
- Current account balance (excluding current official transfers): 2006 (Proj.): -11.3 percent of GDP
- External debt (in percent of GDP): 2005: 34.8; 2006 (Proj.): 37.3
- NPV of external debt (percent of GDP): 2005: 19.2; 2006 (Proj.): 20.9
- Nominal GDP (in billions of CFA francs): 2005: 2,838; 2006 (Proj.): 3,246
- PRGF disbursement schedule (SDR amounts): SDR 3.44 million — March 15, 2006 — Observance of the performance criteria for September 30, 2005 and completion of the fifth review under the arrangement; next scheduled SDR 3.44 million — August 15, 2006 — Observance of the performance criteria for March 31, 2006 and completion of the sixth review under the arrangement.
- IMF Executive Board action: Press Release No. 06/51 — March 13, 2006: Board completed the fifth review and approved a further disbursement of SDR 3.44 million (about US$4.9 million). Total amount drawn under the arrangement to date: SDR 20.6 million (about US$29.6 million).

*Source: IMF staff report for the PRGF-supported program and the fifth review (selected excerpts).*

### 3.44 million becomes available.

### 3.44 million becomes available.

### Executive summary — performance and program adjustments
- Performance under the PRGF-supported program has been good and all quantitative and structural performance criteria for the fifth review were observed.
- The authorities request that the arrangement be extended until September 30, 2006, to ensure that there is sufficient time to complete the sixth review under the arrangement and that the final disbursement can be made within the arrangement period.
- Conditionality for the sixth and final review was approved by Executive Directors at the conclusion of the fourth review; no modifications are proposed, but program adjusters have been amended to allow the spending of all resources freed up under the MDRI in 2006.
- Staff supports the authorities’ requests for the completion of the fifth review and an extension of the arrangement period.

### Recent macroeconomic developments and outlook
- Real GDP grew by an estimated 7½ percent in 2005, driven by record cereal and cotton harvests that more than offset a slowdown in other sectors.
- Inflationary pressures began to ease in September 2005 as food and domestic gasoline prices retreated from record highs; core inflation remained low.
- The nominal effective exchange rate was largely unchanged during the year; domestic inflation resulted in a 4 percent appreciation of the real effective exchange rate.
- The external terms of trade fell by 31 percent in 2005, contributing to an increase in the external current account deficit of 1.6 percent of GDP.
- Credit to the economy expanded rapidly during the first nine months of 2005, primarily in the form of short-term credit to support commercial and industrial activity.
- The quality of commercial banks’ lending portfolios at end-September 2005 appeared little changed relative to end-2004.

### Program implementation and fiscal outcomes (2005)
- All structural performance criteria under the program were observed.
- Fiscal outcomes for 2005:
  - Revenue: 12.6 percent of GDP (Est.)
  - Expenditure and net lending: 20.6 percent of GDP (Est.)
  - Overall balance (excluding grants): -8.0 percent of GDP (Est.)
  - External financing: 8.0 percent of GDP (Est.)
  - Grants (of external financing): 4.1 percent of GDP (Est.)
  - Domestic financing: -0.1 percent of GDP (Est.)
- The fiscal deficit for the first nine months of 2005 was larger than targeted because of an acceleration of expenditure authorizations (engagements) for the domestically-financed public investment program and, to a lesser extent, nonwage recurrent outlays; many of these expenditures were not executed, and the cash-based deficit remained consistent with the quantitative performance criterion on net domestic financing.

### Macroeconomic framework and projections for 2006
- Growth and inflation:
  - Real GDP projected to slow to 4.4 percent in 2006 (Proj.), reflecting a return of agricultural production to its 5-year trend and above-trend nonagricultural growth.
  - CPI (end of period) projected at 2.0 percent for 2006 (Proj.).
- External sector:
  - Current account balance, excluding current official transfers, projected at -11.3 percent of GDP in 2006 (Proj.).
  - The overall balance of payments deficit is projected to decline with stronger cotton export volumes and higher official capital and financial inflows.
- Main risks to the outlook:
  - Renewed weakening of the world cotton price.
  - Strengthening of the euro (to which the local currency is pegged).
  - Further increase in the world oil price.
  - Recurring threat of drought.

### Fiscal policy for 2006 — composition and financing
- Fiscal projections for 2006 (Prog./Proj.):
  - Revenue: 13.3 percent of GDP (Prog.); 13.3 percent of GDP (Proj. in table shows 13.3 under Proj. column).
  - Expenditure and net lending: 22.4 percent of GDP (Prog.); 22.3 percent of GDP (Proj.).
  - Current expenditure: 12.5 percent of GDP (Prog.); 11.9 percent of GDP (Proj.).
  - Wages and salaries: 5.1 percent of GDP (Prog.); 4.7 percent of GDP (Proj.).
  - Capital expenditure: 12.4 percent of GDP (Prog.); 10.5 percent of GDP (Proj.).
  - Overall balance (excluding grants): -10.7 percent of GDP (Prog.); -9.0 percent of GDP (Proj.).
  - External financing: 6.0 percent of GDP (Prog.); 8.8 percent of GDP (Proj.).
  - Grants (of external financing): 3.4 percent of GDP (Prog.); 4.8 percent of GDP (Proj.).
  - Domestic financing: 0.4 percent of GDP (Prog.); 0.4 percent of GDP (Proj.).
  - Financing gap: 4.5 percent of GDP (Prog.); 0.0 percent of GDP (Proj., financing gap listed as 0.0).
- Fiscal policy priorities and measures:
  - The fiscal deficit for 2006 (excluding grants) is projected to rise to 9 percent of GDP and is almost entirely financed by net external flows.
  - Revenue projected to rise to just over 13 percent of GDP, buoyed by rebound in nonagricultural sectors.
  - Expenditures programmed to increase to just over 22 percent of GDP, mainly for externally-financed capital projects and transfers to local governments linked to municipal reform.
  - Wage bill budgeted to increase by about 7½ percent in nominal terms (remaining constant relative to GDP); about half of the increase for new staff (health, education, financial control, judiciary), remainder for promotions and incentives for teachers and health workers to relocate to rural areas.
  - Budget contains CFAF 18 billion (0.6 percent of GDP) for the fuel subsidy to SONABEL and CFAF 2 billion for increased provisions for food security.
- Fiscal administration reforms:
  - Completion of the taxpayer census and commencement of operations by the Joint Brigade of the Tax and Customs Directorate in 2006 to enlarge the tax base and strengthen enforcement.
  - Update of the multi-year plan for strengthening tax and customs administration with Fund technical assistance.

### The MDRI and use of debt relief
- The authorities welcomed the debt relief provided under the Multilateral Debt Relief Initiative (MDRI) and indicated they would use the resources to increase spending on priority social and infrastructure programs.
- Program adjusters were amended to allow the spending of all resources freed up under the MDRI in 2006.
- Authorities signaled caution on new borrowing to ensure debt sustainability despite sizable expenditure needs.

### Medium-Term Expenditure Framework (MTEF) and PRSP linkage
- Authorities will begin work on the 2007–09 MTEF in support of the updated poverty reduction strategy paper.
- The MTEF discussions focus on linking expenditures to the Millennium Development Goals (MDGs) while maintaining the MTEF’s central role in the annual budget process.
- The new MTEF process is expected to distinguish expenditures needed to achieve the MDGs, those feasible given capacity constraints, and those consistent with available resources.

### Financial sector, cotton, energy pricing, and structural reforms
- Cotton sector:
  - World cotton price rebounded from record low in 2004 but remains weak by historical norms; strong cotton export volumes expected to support the external position in 2006.
- Financial sector:
  - Rapid expansion of credit in early 2005, mostly short-term credit supporting commerce and industry.
  - Non-performing loan ratio at end-September 2005 appeared little changed from end-2004.
- Energy pricing:
  - Domestic gasoline prices had retreated from recent peaks by September 2005; budget includes CFAF 18 billion (0.6 percent of GDP) fuel subsidy to SONABEL.
- Structural reforms and governance:
  - Structural performance criteria met, including implementation of fiscal controls by the large taxpayer unit (over 100 enterprises by end-June versus benchmark of 60) and the launch of a census of large and medium-sized enterprises ahead of schedule.
  - Customs Directorate adopted instructions for customs valuation and established a unit to monitor imports benefiting from tax and customs exemptions.
  - Fiscal transparency steps: submission of general balance sheets of the Central Accountant of the Treasury, the General Spending Accountant, and the General Revenue Accountant to the Auditor General; 2004 audited public accounts submitted to the National Assembly.

### Relations with the Fund going forward
- Authorities wish to maintain a close policy dialogue with the Fund after the current PRGF arrangement.
- They are considering a low-access successor PRGF arrangement versus an arrangement under the Fund’s Policy Support Instrument; the appropriate course will be discussed after the completion of the upcoming Ex Post Assessment.

*Summarized from the IMF staff report for the PRGF-supported program and the fifth review (see document content).*

### 12.      The authorities welcomed the debt relief provided under the MDRI and

### _cr06107 - 12.      The authorities welcomed the debt relief provided under the MDRI and

### MDRI debt relief — findings and program response
- Debt relief provided under the MDRI would reduce debt ratios well below the policy-based indicative thresholds of the low income debt sustainability framework.
- Potential flow relief under the MDRI in 2006, including relief from the Fund, IDA and AfDB, is estimated at CFAF 10 billion (0.3 percent of GDP).
- The 2006 program contains an adjuster that accommodates the spending of all resources freed up under the MDRI in 2006.
- The program also accommodates additional spending of up to another CFAF 25 billion (0.6 percent of GDP) if the authorities receive budget support in excess of projected amounts.
- Additional expenditures would be included in the revised budget (Loi Rectificative), and would be subject to the established reporting, audit and oversight requirements, and monitored by staff.
- Assumptions: MDRI relief from IMF and AfDB starts beginning-2006, and mid-2006 for relief from IDA. MDRI relief from the Fund became effective in January 2006. Relief from IDA and AfDB has not been finalized.

### Medium-Term Expenditure Framework (MTEF)
- The MTEF is currently constructed on the basis of identified financing for the first year, and a notional level of budget support for the second and third years consistent with donor indications and recent trends.
- Concern: this alignment with financing has increasingly distanced the MTEF exercise from the objectives of the poverty reduction strategy and the strategy needed to achieve the MDGs.
- Agreement: the 2007–09 PRSP should include the costs of achieving key, if not all, objectives of the PRSP and explicitly incorporate these into the MTEF process.
- Proposed three-tier expenditure framework:
  - Tier 1: expenditures needed to achieve the goals of the PRSP (assuming no capacity and resource constraints).
  - Tier 2: expenditures that could be effectively undertaken given absorptive capacity.
  - Tier 3: expenditures consistent with available resources (forms the basis for the proximate budget).
- The third tier would be adjusted for more spending during the year if additional budget support becomes available, with the ceiling established on the basis of identified capacity constraints.
- The PRSP would identify measures to remove constraints to help bring spending capacity up to the level needed to attain PRSP objectives.

### Cotton sector
- Authorities reaffirm policy of allowing cotton companies and farmers to find their own solution to low world cotton prices without government support to cover financial losses.
- Continued support via donor-funded projects to improve infrastructure, and agricultural extension and research services.
- Ginning companies financed losses from the 2004/05 campaign from their own resources and commercial borrowing.
- Ginning activities of the record 2005/06 cotton crop are underway and are projected to result in a 16 percent increase in cotton fiber production to more than 300,000 tons, making Burkina Faso the largest cotton producer and exporter of sub-Saharan Africa.
- With the increase in world cotton prices since the end of 2004, the financial position of the cotton companies has improved; ginning companies indicated they may realize losses in 2006 as well, unless world prices rise further.
- Staff estimates that the companies, combined, would realize modest profits in 2006.

### Financial sector — performance and supervision
- Available data indicate that commercial banks have so far survived the external terms of trade shock without a noticeable deterioration in their balance sheets, but banks continue to have difficulty meeting all prudential requirements.
- Two of the three cotton ginning companies have repaid all loans related to the 2004/05 cotton crop; the third expects to repay its outstanding balance in the first half of 2006.
- Commercial banks did not report difficulties in recovering loans in other sectors; the sharp increase in world and domestic fuel prices had not yet impeded companies’ ability to service their loans.
- Supervisory authorities were generally satisfied with the quality of commercial bank balance sheets and did not view noncompliance with some prudential regulations as indicative of systemic weakness or risk; banks have adequately provisioned against nonperforming loans.
- The government moved ahead with establishing a new housing bank, taking an initial majority position; together with the social security fund, the state controls 52 percent of shares, which it intends to reduce to 25 percent before the end of 2006.
- Staff recommendation (not adopted): recommended against taking a majority position because of the potential contingent liability and the principle of allowing the private sector to take a leading role.

### Energy pricing and subsidies
- Authorities maintained petroleum-based taxes and consistently implemented the monthly automatic pricing mechanism that links domestic retail petroleum prices to world prices, despite pressure to reduce taxes.
- The subsidy to SONABEL nearly tripled in three years, reaching CFAF 18 billion (0.6 percent of GDP) in 2005, an amount comparable to external debt service before MDRI.
- Authorities will not commit to an automatic adjustment mechanism in 2006 to link electricity tariffs to energy costs, but reiterated commitment to increase electricity tariffs in 2006 in the context of the power-sector strategy agreed with development partners, including the World Bank.
- Authorities will take additional measures, as necessary, to ensure that SONABEL meets all its financial obligations in 2006 without recourse to support from the budget beyond the CFAF 18 billion.
- Authorities are exploring ways to reduce operating costs of SONABHY, the state-owned oil importing monopoly, to reduce fuel prices without reducing fuel-based taxes.

### Structural reforms and business climate
- Performance on structural reforms outside the fiscal area during the first nine months of 2005 was mixed.
- Audits of SONABEL and SONABHY, to have been completed by end-2005, had not yet begun at the time of discussions; donors called for amendments to the electricity sector regulatory framework.
- Authorities are on target to achieve objectives for private-sector participation in these sectors in 2006 and are negotiating with an investment bank to manage the privatization of ONATEL, expecting to sell 51 percent before the end of 2006.
- ONATEL’s monopoly on fixed-line telecommunication service legally ended on January 1, 2006, opening the way for competition.
- Business climate challenges:
  - World Bank rated Burkina Faso’s business environment 154 out of 155 countries surveyed.
  - Cited issues: cumbersome procedures and high costs for opening a business; rigidities of employment regulations; difficulties of enforcing contracts.
- Reforms underway:
  - CEFORE center created in June 2005 as a one-stop shop for investors; from January 2006 the center is to take no more than seven days to approve a business license, and administrative fees are substantially reduced.
  - Plans, with World Bank support, to amend the labor code to simplify procedures for business registration.
  - Intention to revise the Investment Code to enhance investment incentives while reducing revenue losses caused by tax exemptions.
  - Increasing the number of courts and magistrates to strengthen arbitration processes, accelerate resolution of business conflicts, and prosecute corruption.
  - Intention to strengthen public procurement procedures in 2006, building on the audit of public procurement in 2004 and review of laws and regulations.

### Post-program engagement
- Authorities indicated desire to maintain a close policy dialogue with the Fund following the current PRGF arrangement.
- They are considering a low-access successor PRGF arrangement and an arrangement under the Fund’s Policy Support Instrument.
- Discussions on the appropriate successor will be held after the completion of the upcoming Ex Post Assessment of performance under Fund-supported programs, dovetailing with the mission for the sixth and final review.

### Staff appraisal — summary findings and recommendations
- Macroeconomic management has remained strong despite a difficult external environment; all quantitative and structural performance criteria for the fifth PRGF review were observed.
- The 2006 budget provides for increased expenditures in support of economic growth and improved social services; the fiscal deficit is almost entirely financed by highly concessional donor resources, mostly grants, and would be consistent with an improvement in external debt indicators even absent MDRI relief.
- Debt relief under the MDRI will provide resources for implementing the poverty reduction strategy and will significantly reduce the country’s debt burden; the 2006 program accommodates full utilization of resources freed up in 2006 from the MDRI and can accommodate further spending if donor budget support exceeds projections.
- Recommendation: the use of resources freed up under the MDRI beyond 2006 should be considered in the context of the upcoming PRSP and the supporting MTEF for 2007–09; authorities should continue to seek financing on highly concessional terms, preferably in the form of grants, to avoid a return to excessive debt.
- Progress noted in structural reforms to strengthen tax and customs administrations and improve fiscal transparency; continued improvements needed to raise the low revenue-to-GDP ratio to meet MDG expenditure needs.
- Further structural priorities:
  - Accelerate preparation of utilities for private-sector participation.
  - Move toward a system of flexible electricity tariffs that promotes efficiency, investment, and cost recovery to free up resources for poverty-reducing expenditures.
  - Continue civil-judicial, labor-market, and business-registration reforms to improve the business climate.

*Source: IMF staff report (selected excerpts).*

### 26.      The staff recommends that the fifth review under the PRGF arrangement be

### _cr06107 - 26.      The staff recommends that the fifth review under the PRGF arrangement be

### Staff Recommendation
- The staff recommends that the fifth review under the PRGF arrangement be completed and supports the authorities’ request for extension of the program period.

### GDP and Prices (Annual percentage change)
- GDP at constant prices: 2003: 8.0; 2004: 5.5; 2005: 3.5 (Est.); 2005 (Prog. 1/): 7.5; 2006 (Est.): 4.8; 2006 (Proj.): 4.4
- GDP deflator: 2003: 1.5; 2004: 3.3; 2005 (Est.): 1.7; 2005 (Prog. 1/): 3.5; 2006 (Est.): 2.2; 2006 (Proj.): 2.8
- Consumer prices (annual average): 2003: 2.0; 2004: -0.4; 2005 (Est.): 4.0; 2005 (Prog.): 6.4; 2006 (Est.): 2.0; 2006 (Proj.): 2.1
- Consumer prices (end of period): 2003: 3.2; 2004: 0.7; 2005 (Est.): 2.0; 2005 (Prog.): 4.5; 2006 (Est.): 2.0; 2006 (Proj.): 2.0

### Money and Credit
- Net domestic assets (banking system; percent of beginning-of-period broad money): 2003: 10.4; 2004: 1.7; 2005 (Est.): 8.2; 2005 (Prog.): 13.7; 2006 (Est.): 7.4; 2006 (Proj.): 10.5
- Credit to the government (percent of beginning-of-period broad money): 2003: 2.4; 2004: -4.9; 2005 (Est.): 4.8; 2005 (Prog.): 3.7; 2006 (Est.): 5.1; 2006 (Proj.): 4.2
- Credit to the private sector (percent of beginning-of-period broad money): 2003: 9.4; 2004: 8.1; 2005 (Est.): 3.4; 2005 (Prog.): 12.0; 2006 (Est.): 2.3; 2006 (Proj.): 6.3
- Broad money (M2): 2003: 16.3; 2004: 22.9; 2005 (Est.): 5.3; 2005 (Prog.): 6.0; 2006 (Est.): 7.1; 2006 (Proj.): 7.3

### External Sector Prices and Terms
- Exports (f.o.b.; valued in CFA francs): 2003: 9.1; 2004: 22.9; 2005 (Est.): 1.4; 2005 (Prog.): 1.4; 2006 (Est.): 8.5; 2006 (Proj.): 23.4
- Imports (f.o.b.; valued in CFA francs): 2003: -0.7; 2004: 4.9; 2005 (Est.): 13.1; 2005 (Prog.): 17.3; 2006 (Est.): 10.6; 2006 (Proj.): 9.5
- Terms of trade: 2003: -0.8; 2004: 1.8; 2005 (Est.): -26.4; 2005 (Prog.): -31.0; 2006 (Est.): 0.3; 2006 (Proj.): -0.3
- World cotton price (US$ cents per pound): 2003: 63.4; 2004: 62.0; 2005: 53.0; 2005 (Prog.): 54.0; 2006 (Est.): 55.0; 2006 (Proj.): 59.5
- Average petroleum spot price (US$ per barrel): 2003: 28.9; 2004: 37.8; 2005: 50.7; 2005 (Prog.): 54.2; 2006 (Est.): 53.0; 2006 (Proj.): 61.8

### Investment and Savings (percent of GDP)
- Gross investment: 2003: 17.0; 2004: 18.4; 2005 (Est.): 19.5; 2005 (Prog.): 19.9; 2006 (Est.): 20.8; 2006 (Proj.): 20.2
- Gross domestic savings: 2003: 4.1; 2004: 7.3; 2005 (Est.): 6.6; 2005 (Prog.): 7.1; 2006 (Est.): 7.2; 2006 (Proj.): 8.1
- Gross national savings: 2003: 8.4; 2004: 10.6; 2005 (Est.): 10.4; 2005 (Prog.): 10.5; 2006 (Est.): 9.0; 2006 (Proj.): 11.5

### Central Government Finances (percent of GDP)
- Current revenue: 2003: 12.1; 2004: 12.7; 2005 (Est.): 13.3; 2005 (Prog.): 12.6; 2006 (Est.): 14.0; 2006 (Proj.): 13.3
- Total expenditure: 2003: 20.3; 2004: 21.2; 2005 (Est.): 22.9; 2005 (Prog.): 20.6; 2006 (Est.): 24.7; 2006 (Proj.): 22.3
- Overall fiscal balance, excluding grants: 2003: -8.2; 2004: -8.5; 2005 (Est.): -9.6; 2005 (Prog.): -8.0; 2006 (Est.): -10.7; 2006 (Proj.): -9.0
- Overall fiscal balance, including grants: 2003: -2.9; 2004: -4.2; 2005 (Est.): -4.3; 2005 (Prog.): -3.9; 2006 (Est.): -7.3; 2006 (Proj.): -4.2

### External Sector (percent of GDP)
- Exports of goods and services: 2003: 8.9; 2004: 9.8; 2005 (Est.): 9.6; 2005 (Prog.): 9.0; 2006 (Est.): 9.6; 2006 (Proj.): 10.2
- Imports of goods and services: 2003: 21.7; 2004: 20.8; 2005 (Est.): 22.4; 2005 (Prog.): 21.8; 2006 (Est.): 23.1; 2006 (Proj.): 22.2
- Current account balance (excluding current official transfers): 2003: -12.7; 2004: -10.7; 2005 (Est.): -12.3; 2005 (Prog.): -12.3; 2006 (Est.): -12.8; 2006 (Proj.): -11.3
- Current account balance (including current official transfers): 2003: -8.6; 2004: -7.8; 2005 (Est.): -9.1; 2005 (Prog.): -9.3; 2006 (Est.): -11.8; 2006 (Proj.): -8.7
- Reserves in months of imports of goods and services: 2003: 5.0; 2004: 6.7; 2005 (Est.): 3.6; 2005 (Prog.): 5.6; 2006 (Est.): 3.2; 2006 (Proj.): 4.7

### Debt Indicators
- External debt in percent of GDP: 2004: 34.3; 2005: 34.8; 2006 (Est.): 33.0; 2006 (Proj.): 37.3; 2006 (Est. alt.): 35.5
- NPV of external debt in percent of GDP: 2004: 18.1; 2005: 19.2; 2006 (Est.): 18.3; 2006 (Proj.): 20.9; 2006 (Est. alt.): 19.9
- NPV of external debt in percent of exports: 2004: 183.1; 2005: 200.5; 2006 (Est.): 202.7; 2006 (Proj.): 216.9; 2006 (Est. alt.): 195.5
- NPV of external debt in percent of revenues: 2004: 141.5; 2005: 143.9; 2006 (Est.): 145.1; 2006 (Proj.): 149.3; 2006 (Est. alt.): 149.1

### Nominal GDP
- Nominal GDP (in billions of CFA francs): 2003: 2,494; 2004: 2,720; 2005: 2,838; 2005 (Prog.1/Est.): 3,026; 2006 (Est.): 3,039; 2006 (Proj.): 3,246

### Consolidated Operations of the Central Government (Table highlights, in billions of CFA francs)
- Total revenues and grants: 2003: 435; 2004: 462; Jan.-Sep 2005: 352; Jan.-Dec 2005: 362; 2005 Prog.1/: 530; 2006 Est.: 504; 2006 Prog.: 528; 2006 Proj.: 588
- Total revenues: 2003: 301; 2004: 344; Jan.-Sep 2005: 272; Jan.-Dec 2005: 279; 2005 Prog.1/: 378; 2006 Est.: 381; 2006 Prog.: 426; 2006 Proj.: 432
- Tax revenue: 2003: 270; 2004: 318; Jan.-Sep 2005: 252; Jan.-Dec 2005: 256; 2005 Prog.1/: 350; 2006 Est.: 354; 2006 Prog.: 395; 2006 Proj.: 399
- Grants: 2003: 133; 2004: 117; Jan.-Sep 2005: 80; Jan.-Dec 2005: 84; 2005 Prog.1/: 152; 2006 Est.: 123; 2006 Prog.: 102; 2006 Proj.: 156
- Expenditure and net lending: 2003: 507; 2004: 577; Jan.-Sep 2005: 451; Jan.-Dec 2005: 477; 2005 Prog.1/: 651; 2006 Est.: 623; 2006 Prog.: 751; 2006 Proj.: 725
- Overall balance: 2003: -72; 2004: -115; Jan.-Sep 2005: -99; Jan.-Dec 2005: -115; 2005 Prog.1/: -121; 2006 Est.: -120; 2006 Prog.: -223; 2006 Proj.: -136
- Excluding grants overall balance: 2003: -206; 2004: -233; Jan.-Sep 2005: -179; Jan.-Dec 2005: -198; 2005 Prog.1/: -273; 2006 Est.: -243; 2006 Prog.: -325; 2006 Proj.: -292
- Financing (total): 2003: 731; 2004: 179; Jan.-Sep 2005: 912; Jan.-Dec 2005: 212; 2005 Prog.1/: 111; 2006 Est.: 985; 2006 Prog.: 136

### Monetary Survey (selected, in billions of CFA francs)
- Net foreign assets (Dec): 2004: 274; Mar: 229; Jun: 218; Sep: 212; Dec (Prog.1/): 149; Dec (Proj.): 226; Dec: 147; Dec: 204
- Net domestic assets: Dec series: 350; 434; 417; 405; 387; 436; 427; 505
- Broad money: Dec series: 624; 663; 635; 617; 536; 662; 574; 710
- Memorandum (annual changes in percent of stock of broad money of 12 months earlier):
  - Net foreign assets: 21.2; 19.8; 8.9; 2.7; -2.9; -7.7; -0.4; -3.2
  - Net domestic assets: 1.7; 11.2; 16.1; 19.4; 8.2; 13.7; 7.4; 10.5
  - Money supply (M2 growth): 22.9; 31.0; 25.0; 22.1; 5.3; 6.0; 7.1; 7.3

### Balance of Payments (selected, in billions of CFA francs)
- Exports, f.o.b.: 2004 Est.: 229; 2005 Prog.1/: 233; 2005 Proj.: 232; 2006 Prog.: 253; 2006 Proj.: 287
  - Of which: cotton: 2004: 159; 2005 Prog.1/: 157; 2005 Proj.: 151; 2006 Prog.: 173; 2006 Proj.: 202
- Imports, f.o.b.: 2004 Est.: -418; 2005 Prog.1/: -473; 2005 Proj.: -490; 2006 Prog.: -523; 2006 Proj.: -537
  - Of which: petroleum products: 2004: -90; 2005 Prog.1/: -125; 2005 Proj.: -139; 2006 Prog.: -144; 2006 Proj.: -170
- Trade balance: 2004: -189; 2005 Prog.1/: -240; 2005 Proj.: -258; 2006 Prog.: -270; 2006 Proj.: -250
- Current transfers (net): 2004: 104; 2005 Prog.1/: 123; 2005 Proj.: 121; 2006 Prog.: 66; 2006 Proj.: 126
  - Private: 2004: 26; 2005 Prog.1/: 32; 2005 Proj.: 32; 2006 Prog.: 33; 2006 Proj.: 39
  - Official: 2004: 78; 2005 Prog.1/: 91; 2005 Proj.: 89; 2006 Prog.: 33; 2006 Proj.: 87
- Current account (– = deficit): 2004: -212; 2005 Prog.1/: -259; 2005 Proj.: -283; 2006 Prog.: -357; 2006 Proj.: -281
  - Excluding current official transfers: 2004: -290; 2005 Prog.1/: -349; 2005 Proj.: -372; 2006 Prog.: -390; 2006 Proj.: -368
- Overall balance: 2004: 108; 2005 Prog.1/: -15; 2005 Proj.: -48; 2006 Prog.: -140; 2006 Proj.: -21
- Gross international reserves (in billions of CFA francs): 2004: 318.1; 2005 Prog.1/: 191.7; 2005 Proj.: 306.0; 2006 Prog.: 187.3; 2006 Proj.: 282.1
- In months of imports of goods and services: 2004: 6.7; 2005 Prog.1/: 3.6; 2005 Proj.: 5.6; 2006 Prog.: 3.2; 2006 Proj.: 4.7

### External Debt Sustainability Framework (selected projections, percent of GDP and other ratios)
- External debt (nominal) 2004: 34.3; 2005: 33.0; Projections 2006–2010 and beyond included in table (e.g., 2010 average: 22.5; 2015: 31.7; 2020: 32.0; 2025: 32.0)
- Change in external debt: 2004: -8.6; 2005: -1.0; projection entries follow (e.g., 2006: 3.3)
- Identified net debt-creating flows: 2004: 0.7; 2005: 6.6; 2006: 8.2; subsequent projections shown year-by-year
- Non-interest current account deficit (percent of GDP): 2004: 7.6; 2005: 9.1; 2006: 8.5; projections follow
- NPV of external debt (percent of GDP): 2004: 18.1; 2005: 18.3; 2006: 9.8; projections to 2025 shown (e.g., 2015: 19.3; 2020: 19.8; 2025: 20.1)
- NPV of external debt (percent of exports): 2004: 183.1; 2005: 202.7; 2006: 96.5; projections to 2025 shown
- NPV of external debt (percent of revenues): 2004: 141.5; 2005: 145.1; 2006: 73.6; projections to 2025 shown
- Debt service-to-exports ratio (percent): 2004: 4.9; 2005: 8.2; 2006: 5.1; projections follow
- Debt service-to-revenues ratio (percent): 2004: 3.8; 2005: 5.9; 2006: 3.9; projections follow
- Total gross financing need (millions of U.S. dollars): 2004: 393.4; 2005: 546.4; 2006: 520.9; projections listed through 2025
- Key macro assumptions:
  - Real GDP growth (percent): 2004: 15.0; 2005: 7.9; 2006: 1.4; 2007: 6.3; long-run average 2011–25: 6.0
  - GDP deflator in US dollar terms (change in percent): 2004: 3.3; 2005: 3.5; 2006: 2.8; long-run: 2.1
  - Effective interest rate (percent): 2004: 0.7; 2005: 0.8; 2006: 1.4; projection steady at 1.1

### Schedule of PRGF Disbursements (Table 6, SDR amounts)
- SDR 3.44 million — June 11, 2003 — Following Executive Board approval of the three-year PRGF arrangement
- SDR 3.44 million — March 19, 2004 — Observance of the performance criteria for September 30, 2003 and completion of the first review under the arrangement
- SDR 3.44 million — February 2, 2005 — Observance of the performance criteria for March 31, 2004 and completion of the second review under the arrangement
- SDR 3.44 million — February 2, 2005 — Observance of the performance criteria for September 30, 2004 and completion of the third review under the arrangement
- SDR 3.44 million — September 7, 2005 — Observance of the performance criteria for March 31, 2005 and completion of the fourth review under the arrangement
- SDR 3.44 million — March 15, 2006 — Observance of the performance criteria for September 30, 2005 and completion of the fifth review under the arrangement
- SDR 3.44 million — August 15, 2006 — Observance of the performance criteria for March 31, 2006 and completion of the sixth review under the arrangement
- Note: The second and third reviews under the arrangement were completed simultaneously on February 2, 2005.

### IMF Credit Position and Projected Payments to the IMF (Table 7, selected)
- Fund credit, net charges (SDRs): 2005: 1.8; 2006: -6.6; 2007 onwards projections shown (e.g., 2007: 0.3)
- PRGF disbursements: 2005: 10.3; 2006: 6.9; 2007–2015: 0.0 (annual breakdown provided)
- PRGF repayments (SDRs): 2005: 11.7; 2006 onward repayments schedule shows amounts (e.g., 2010: 0.7; 2011: 2.4)
- MDRI relief (annual relief on principal and interest, net of remaining HIPC assistance): 2006 onward entries (e.g., 2006: 7.4; 2007: 10.9; 2008: 11.7; declining in later years)
- Outstanding Fund credit, end of period: 2005: 72.4 SDRs; 2006: 17.2 SDRs; 2015: 1.0 SDR
- Exchange rate: CFA francs per SDR (period average): 2005: 772.2; 2006: 796.9; 2007: 796.4; subsequent years similar

### Selected Millennium Development Goals Indicators (Table 8)
- Population below US$1 a day (percent): 1990: ..; 1994: 62.7; 1997: 44.9; subsequent years data sparse
- Prevalence of underweight in children (under 5): 2003: 37.7; 2004: 37.7
- Net primary enrollment ratio (percent): 1999/2000 approx: 33.5; 2002/2003: 35.0; 2003/2004: 36.2
- Primary completion rate, total (percent): 1990: 19.1; 1994: 18.1; 1997: 23.7; 2000: 27.8; 2003: 29.2
- Immunization, measles (percent of children ages 12-23 months): 1990: 79.0; 1994: 45.0; 1997: 41.0; 2000: 59.0; 2003: 76.0; 2004: 76.0
- Infant mortality rate (per 1,000 live births): 1990: 118.0; 1994: 110.0; 2000: 107.0; 2003: 107.0; 2004: 107.0
- Under 5 mortality rate (per 1,000): 1990: 210.0; 1994: 207.0; 2000: 207.0; 2003: 207.0; 2004: 207.0
- Contraceptive prevalence rate (percent of women ages 15–49): 1990: ..; 1994: 7.7; 1997: 11.9; 2003: 14.0; 2004: 14.0
- Incidence of tuberculosis (per 100,000 people): 1990: 147.3; 1994: 151.9; 1997: 155.5; 2000: 159.1; 2003: 162.8; 2004: 162.8
- Number of children orphaned by HIV/AIDS (in thousands): 2003: 240.0; 2004: 260.0
- Prevalence of HIV, total (percent ages 15–24): 2003: 4.2; 2004: 1.8; 2004 (alternate): 1.8
- Aid per capita (current US dollars): 1990: 37.3; 1994: 44.4; 1997: 35.2; 2000: 29.8; 2003: 37.2; 2004: 37.2
- Debt service (percent of exports): 1990: 8.0; 1994: 15.0; 1997: 18.0; 2000: 23.0; 2003: 13.0; 2004: 13.0
- Fixed line and mobile telephones (per 1,000 people): 1990: 1.8; 1994: 2.7; 1997: 3.6; 2000: 6.9; 2003: 23.9; 2004: 23.9
- GNI per capita, Atlas method (current U.S. dollars): 1990: 330.0; 1994: 230.0; 1997: 270.0; 2000: 250.0; 2003: 300.0; 2004: 360.0
- Population (million): 1990: 8.9; 1994: 9.8; 1997: 10.5; 2000: 11.3; 2003: 12.1; 2004: 12.4

### Administrative / Other Items
- Table 6, Table 7, Table 8, and Appendix I entries and schedules are included in the source text.
- Ouagadougou, February 27, 2006 — Letter opening to Mr. Rodrigo de Rato, Managing Director, IMF (text begins in Appendix I).

*Source: Burkinabè authorities; Fund staff estimates and projections; IMF Country Report No. 05/134, August 24, 2005; Central Bank of West African States (BCEAO); Staff simulations; World Development Indicators database, April 2005; International Monetary Fund.*

### 1.      The government of Burkina Faso is implementing a program of macroeconomic and

### _cr06107 - 1.      The government of Burkina Faso is implementing a program of macroeconomic and

### Program overview and Fund support
- Arrangement under the Poverty Reduction and Growth Facility (PRGF) for an amount equivalent to SDR 24.08 million (40 percent of quota) approved by the IMF Board on June 11, 2003; the program expires in August 2006.
- On the basis of performance through 2005, the government requests completion of the fifth review under the PRGF and disbursement of the sixth loan in the amount of SDR 3.44 million.
- The government requests that the arrangement be extended until September 30, 2006 to allow time to complete the sixth review.

### 2005 implementation and macroeconomic outturn
- Real GDP growth for 2005 is estimated at 7½ percent, driven by strong cereals and cotton growth offsetting a slowdown in nonagricultural growth.
- Inflation averaged just over 6 percent in 2005; excluding food and transport, inflation remained near zero.
- The world price of cotton rebounded since end-2004, but the cotton sector situation remains difficult.
- External current account deficit (excluding official grants) in 2005 is estimated to have increased to just over 12 percent of GDP.
- Growth of broad money matched nominal GDP growth in 2005; credit to the economy expanded rapidly.
- Overall balance of payments for 2005 is projected to be in deficit.
- Fiscal performance: the fiscal deficit for the first nine months of 2005 was larger than programmed despite higher revenues, mainly due to accelerated expenditure authorizations for the domestically-financed public investment program and some nonwage recurrent outlays.
- All quantitative and structural performance criteria for the completion of the fifth review were observed.
- The government reduced expenditure authorizations in the fourth quarter to ensure annual fiscal targets are achieved; the overall fiscal deficit (excluding grants) will be entirely financed by net external resources.

### 2006 program projections and policy priorities
- Real GDP growth in 2006 is projected to slow to about 4½ percent as agricultural production returns to trend.
- Nonagricultural growth in 2006 is projected to rise to about 6 percent.
- Inflation in 2006 is projected to fall to about 2 percent.
- Cotton exports in 2006 are projected to rise by about 35 percent on the basis of the record 2005/06 harvest and recent improvement in world cotton price.
- External current account deficit (excluding official grants) in 2006 is projected to shrink moderately to about 11 percent of GDP.
- Broad money and credit growth are expected to slow in 2006; the overall balance of payments is projected to improve moderately but remain in deficit.
- Financial situation of ginning companies expected to improve in 2006, but profitability depends on further improvement in world cotton prices.

### Fiscal framework and key expenditure items (2006)
- Government revenue projected to increase to about 13¼ percent of GDP.
- Wage bill projected to rise on the order of 7½ percent to reach CFAF 152 billion, reflecting hiring more teachers to expand educational opportunities, especially for girls.
- Transfers programmed to rise by 25 percent to CFAF 126 billion to finance decentralization of health and education services, municipal elections, and new municipal administrations.
- Temporary fertilizer subsidy to be extended for one year, limited to a total of CFAF 3 billion.
- Total expenditure and net lending projected to rise to about 725 billion, amounting to about 22¼ percent of GDP.
- The overall deficit, excluding grants, would be nearly covered by net external flows; the projection of domestic financing (including cash adjustment) is unchanged from the previous MEFP.

### Structural reforms and institutional measures
- Continued implementation of fiscal reforms, on track to meet all structural performance criteria and benchmarks for the sixth and final review.
- Tax administration measures:
  - Census of large and medium-sized enterprises in Ouagadougou and Bobo-Dioulasso launched in early December.
  - Joint Brigade of the Tax and Customs Directorates put in place with a work plan for 2006.
  - Streamlining documentation to expedite government payments and strengthening internal controls.
  - Update of multi-year plan to strengthen tax and customs administration, including measures to reduce smuggling, expedite VAT refunds, revise the investment code to balance incentives and revenue losses from exonerations, and computerize revenue management.
- Power and energy sector reforms:
  - Approval of revised law on legal and regulatory framework for the electricity sector.
  - Establishment of a regulatory agency for the electricity sector.
  - Issuance of a tender for selection of a private operator for management of SONABEL before end-June 2006.
  - Government will raise electricity tariffs in the context of the power sector strategy; programmed budget subsidy for SONABEL is CFAF 18 billion and the objective is to eliminate the need for budget subsidy over the medium term.
- Oil and telecommunications sector actions:
  - Issuance of bidding documents for private sector participation in the capital of SONABHY before end-June 2006 and sale of a minority stake by the end of 2006.
  - Privatization of ONATEL by the end of 2006 and elimination of ONATEL’s monopoly in land-line service effective January 1, 2006.
  - Reduce state and national social security holdings in the Housing Bank to 10 and 15 percent, respectively, before the end of 2006.
- Business climate and governance:
  - Revise the investment code and streamline property transfer and business licensing procedures.
  - Implement reforms to enhance labor market flexibility.
  - Continue anti-corruption efforts and judicial reform: increase number of magistrates, improve training, and strengthen judicial oversight.

### Social spending and PRSP alignment
- Preparing Priority Action Plan (PAP) of the PRSP for 2006–08 and developing a medium-term expenditure framework reflecting MDG costs.
- Budget for each year to be aligned with available resources; identify additional spending that could be undertaken if concessional external resources become available.
- The 2006 budget is fully financed but insufficient to realize 2004–06 PRSP objectives; absorptive capacity could accommodate an additional CFAF 35 billion for priority social and infrastructure programs.
- Savings from MDRI debt relief in 2006 would cover less than half of that CFAF 35 billion.

### Program monitoring and reviews
- 2006 implementation to be assessed against continuous performance criteria, quantitative and structural performance criteria for March 2006, and indicative targets for end-June established at the conclusion of the fourth review.
- Expectation to complete the sixth review under the program by August 15, 2006 on the basis of performance criteria at end-March 2006.

*Source: Memorandum of Economic and Financial Policies of the government of Burkina Faso for 2006 (attachment to IMF communication).*

### 5. Adoption by the Customs Directorate of instructions for customs

### 5. Adoption by the Customs Directorate of instructions for customs

### Implementation actions and observations (timebound measures)
- Adoption by the Customs Directorate of instructions for customs valuation, and transmission to the pre-inspection company of customs data allowing for the reconciliation of the pre-inspection and declared values of imports.
  - End-June 2005 — Observed
- Submission to the Auditor General Office of the 2004 general balance sheets of the Central Accountant of the Treasury, the General Spending Accountant, and the General Revenue Accountant.
  - End-September 2005 — Observed
- Submission to the Auditor General Office of the 2004 draft annual budget act. 1/
  - End-September 2005 — Observed
- Implementation by the Large Taxpayer Division (DGE) of fiscal controls of at least 60 companies.
  - End-September 2005 — Observed
- Establishment by the Customs Directorate of a special unit to monitor the use of imports benefiting from fiscal exonerations. 1/
  - End-September 2005 — Observed
- Launch by the Tax Directorate of a comprehensive census of large and medium-sized enterprises in Ouagadougou and Bobo-Dioulasso and publication of a report on the status of its implementation.
  - End-December 2005
- Establishment of a fully operational Joint Brigade of the Tax and Customs Directorates with an annual work program for 2006. 1/
  - End-December 2005
- Submission to the Minister of Finance of a report on the six joint audits of the Joint Brigade of the Tax and Customs Directorates. 1/
  - End-March 2006
- Completion of the taxpayer census in Ouagadougou and Bobo-Dioulasso, and submission to the Minister of Finance of an implementation report. 1/
  - 15 May, 2006
- Implementation of the automatic price structure adjustment mechanism for petroleum products in relation to costs.
  - Continuous

### Notes on classification
- 1/ denotes a Performance criterion.

### Context within the Technical Memorandum of Understanding (TMU)
- The actions above appear in the TMU attached to the program supported by the Poverty Reduction and Growth Facility (PRGF) and are linked to program monitoring and performance criteria for 2005–06.

### Quantitative performance criteria — selected definitions and ceilings
- Definition highlights:
  - “Debt” is defined consistent with point 9 of the Guidelines on Performance Criteria with Respect to Foreign Debt (IMF, August 24, 2000).
  - “Government” refers to the central government of Burkina Faso, excluding political subdivisions, government-owned entities, or central bank with separate legal personality.
  - External payments arrears are external payments due but unpaid. Domestic payments arrears are domestic payments due (following the expiration of a 90-day grace period, except where a specific grace period applies) but unpaid.
- Net domestic financing of the government is defined as the sum of:
  - (i) net bank credit to the government (including net bank credit to the treasury and other government claims/debts vis-à-vis national banking institutions);
  - (ii) the unredeemed stock of government bills and bonds held outside national commercial banks; and
  - (iii) privatization receipts.
- Net bank credit to the treasury includes treasury cash holdings, deposits with the central bank, deposits with commercial banks, secured obligations, government deposits with the postal system (CCP), and funding from the central bank and commercial banks as specified.
- Calculation and reporting:
  - Net bank credit to the government is calculated by BCEAO.
  - Stock of treasury bills and other government debt is calculated by the Ministry of Finance.
  - Data on net bank credit to the government: forwarded monthly by BCEAO staff; stock of government bills and other government debt: by the Ministry of Finance within six weeks following the end of each month.

### Ceilings and adjustments on net domestic financing (cumulative change from January 1, 2005 onward)
- Ceiling at September 30, 2005: CFAF 4.2 billion (performance criterion at end-September 2005)
- Ceiling at December 31, 2005: CFAF 8,9 billion
- Ceiling at March 31, 2006 (from January 1, 2006 onward): CFAF 14.8 billion
- Adjustments:
  - Upward (downward) by excess (shortfall) external debt service relative to program, excluding IMF amortization. Downward adjustment does not apply to MDRI-related shortfall.
  - In 2006, downward adjustment for debt relief on IMF principal falling due after 2006.
  - Upward (downward) by amount of shortfall (surplus) in balance of payments assistance. Downward adjustment does not apply to the first CFAF 25 billion in excess balance of payments support if additional spending is for priority social programs or priority infrastructure.
  - Upward adjustment from shortfall in balance of payments assistance limited to CFAF 50 billion at end-December 2005 and CFAF 50 billion at end-December 2006.

### Performance criteria on arrears and external debt
- Nonaccumulation of domestic payments arrears:
  - Government will not accumulate any domestic payments arrears on government obligations in 2005 and 2006.
  - This is a performance criterion to be observed continuously.
  - Reporting: data on outstanding balances, accumulation, and repayment of domestic arrears to be reported monthly within four weeks following the end of each month.
- Nonaccumulation of external payments arrears:
  - Government undertakes not to accumulate external payments arrears on its debt, except arrears arising from renegotiated government debt (including non-Paris Club bilateral creditors and multilateral creditors under enhanced HIPC Initiative).
  - This is a performance criterion to be observed continuously.
  - Reporting: data on outstanding balances, accumulation, and repayment of external payments arrears to be forwarded monthly within four weeks following the end of each month.
- Nonconcessional external debt contracted or guaranteed:
  - Government undertakes not to contract or guarantee external debt maturing in one year or more with a grant element of less than 35 percent (calculated using the IMF interest reference rate for borrowed foreign currencies).
  - Applies to debt as defined in point 9 of the Guidelines and to commitments contracted or guaranteed for which value has not been received.
  - Excludes treasury bills and bonds issued in CFA francs on the WAEMU regional market.
  - This is a performance criterion to be observed continuously.
  - Reporting: details on any government loan and guarantees must be reported monthly within four weeks of the end of each month.
- Government short-term external debt:
  - Government undertakes not to accumulate or guarantee any new external debt with contractual maturity of less than one year (with specific exclusions for import/export-related loans, WAEMU CFAF treasury bills/bonds, and normal short-term suppliers’ credits of one year or less).
  - Performance criterion to be observed continuously.
  - As of March 31, 2005, the government of Burkina Faso had no short-term external debt.

### Other quantitative indicative targets (definitions and scheduled ceilings/floors)
- Definitions:
  - Basic balance of government financial operations: total government revenue (excluding grants and proceeds of privatization) minus total government expenditure and net lending, excluding foreign-financed investment and net lending. Valued per the government budgetary execution statement prepared monthly by SP-PPF.
  - Total government revenue: valued on a cash basis; includes tax and nontax revenue collected by relevant directorates and treasury checks.
  - Expenditure: valued on a commitment basis, including HIPC Initiative-financed expenditure; includes current and capital expenditure financed by the Treasury.
  - Current expenditure: total expenditure minus capital expenditure and net lending; includes wage bill, goods/services, interest, transfers, subsidies, other current expenditure.
  - Wage bill: entire government payroll on a commitment basis, including wages and benefits for all civilian and military personnel and wage bill paid out of HIPC Initiative funds.
  - DENM (expenditure committed but not authorized): expenditure certified by the financial comptroller but for which payment authorization (mandat) has not been issued.
- Indicative ceilings and floors (cumulative from January 1, 2005 onward):
  - Ceiling for cumulative basic deficit:
    - CFAF 38.8 billion at June 30, 2005 (indicative target)
    - CFAF 56.4 billion at September 30, 2005 (indicative target)
    - Projected CFAF 84.7 billion at December 31, 2005
    - (From January 1, 2006 onward) projected CFAF 23.7 billion at March 31, 2006
  - Floor for total government revenue:
    - CFAF 177.6 billion at June 30, 2005 (indicative target)
    - CFAF 272.1 billion at September 30, 2005 (indicative target)
    - Projected CFAF 377.9 billion at December 31, 2005
    - (From January 1, 2006 onward) projected CFAF 87.7 billion at March 31, 2006
  - Ceilings for current expenditure and the wage bill:
    - At June 30, 2005: current expenditure ceiling CFAF 167.1 billion; wage bill ceiling CFAF 69.7 billion (indicative targets)
    - At September 30, 2005: current expenditure ceiling CFAF 253.2 billion; wage bill ceiling CFAF 105.6 billion (indicative targets)
    - Projected at December 31, 2005: current expenditure CFAF 339.6 billion; wage bill CFAF 141.6 billion
    - (From January 1, 2006 onward) projected at March 31, 2006: current expenditure CFAF 91.2 billion; wage bill CFAF 37.1 billion
  - Ceiling for cumulative increase in stock of DENMs:
    - CFAF 1.0 billion at June 30, 2005 (indicative target)
    - CFAF 6.0 billion at September 30, 2005 (indicative target)
    - Projected CFAF 3.4 billion at December 31, 2005
    - Floor for cumulative reduction (from January 1, 2006 onward) projected at CFAF 7.0 billion at March 31, 2006
- Reporting deadlines:
  - Details on basic balance, total revenue, current expenditure, wage bill, and DENMs: monthly to IMF staff by SP-PPF within six weeks following the end of each month.

### Additional information for program-monitoring purposes — public finance reporting
- Government will report the following to Fund staff:
  - A monthly government flow-of-funds table (TOFE) and the 13 customary appendix tables: forwarded monthly within six weeks following the end of each month; if actual investment financed by external grants/loans unavailable in time, a linear implementation estimate based on annual projections will be adopted.
  - Complete monthly data on domestic budgetary financing (net bank credit to the government and stock of unredeemed treasury bonds and bills): provided monthly within six weeks following the end of each month.
  - Quarterly data on implementation of the public investment program, including financing sources: sent quarterly within six weeks following the end of each quarter.
  - Monthly data on external debt stock and service: to be sent within four weeks following the end of each month.
  - Monthly data on prices and the taxation of petroleum products, including:
    - (i) the price structure prevailing during the month;
    - (ii) the detailed calculation of the price structure, from the f.o.b.-MED price to the retail price;
    - (iii) the volumes purchased and made available for consumption by the petroleum distributor (SONABHY);
    - (iv) the breakdown of receipts from the taxation of petroleum products—customs duties, tax on petroleum products (TPP), and value-added tax (VAT)—and of subsidies;
    - To be provided within four weeks following the end of each month.
  - The status of accounts with the treasury, classified by major category (administrative services, state enterprises, mixed enterprises, public administrative enterprises, international organizations, private depositors, and others): provided monthly within four weeks following the end of each month.

_Technical Memorandum of Understanding, Ouagadougou, February 27, 2006 (Attachment II — selected extracts)._

### 30.      The government will provide monthly the following information within six weeks

### 30. The government will provide monthly the following information within six weeks

### Monetary and Financial Data
- The government will provide monthly the following information within six weeks following the end of each month:
  - the consolidated balance sheet of monetary institutions;
  - the monetary survey, within six weeks following the end of each month for provisional data, and ten weeks following the end of each month for final data;
  - borrowing and lending interest rates; and
  - customary banking supervision indicators for bank and nonbank financial institutions, if necessary.

### Balance of Payments (Section C)
- The government will report the following to Fund staff:
  - any revision of balance of payments data (including services, private transfers, official transfers, and capital transactions), whenever they occur;
  - foreign trade statistics compiled by the National Statistics Institute, within three months following the end of the month concerned; and
  - preliminary annual balance of payments data, within nine months following the end of the year concerned.

### Real Sector (Section D)
- The government will report the following to Fund staff:
  - disaggregated monthly consumer price indices, within two weeks following the end of each month;
  - provisional national accounts, within six months after the end of the year; and
  - any revision of the national accounts.

### Structural Reforms and Other Data (Section E)
- The government will report:
  - any study or official report on Burkina Faso’s economy, within two weeks following its publication; and
  - any decision, order, law, decree, ordinance, or circular with economic or financial implications, upon its publication or, at the latest, when it enters into force.

### HIPC Initiative (Section F)
- The government will report monthly, within three weeks following the end of each month, monthly data on resources, uses, and balances in the special account established at the BCEAO for the use of resources generated by a reduced debt burden under the HIPC Initiative.

### Summary of Data Requirements (selected items and deadlines)
- Real sector
  - Provisional national accounts — Annual — Year’s end + six months
  - Revisions of national accounts — Variable — End of revision + eight weeks
  - Disaggregated consumer price index — Monthly — Month’s end + two weeks
- Public finance
  - Net treasury and government position at the BCEAO and details of nonbank financing, including the stock of treasury bills and bonds — Monthly — Month’s end + six weeks
  - Government flow-of-funds table (TOFE) and the 13 customary appendix tables — Monthly — Month’s end + six weeks
  - Execution of capital budget — Quarterly — End of quarter + six weeks
  - Petroleum product pricing formula, tax receipts on petroleum products, and subsidies paid — Monthly — Month’s end + four weeks
  - Status of the deposit accounts with the public treasury, classified by major category — Monthly — Month’s end + four weeks
- Monetary and financial data
  - Monetary survey — Monthly — Month’s end + six weeks
  - Consolidated balance sheet of monetary institutions — Monthly — Month’s end + six weeks
  - Borrowing and lending interest rates — Monthly — Month’s end + six weeks
  - Banking supervision ratios — Quarterly — End of quarter + eight weeks
- Balance of payments
  - Balance of payments — Annual — End of year + nine months
  - Revised balance of payments data — Variable — When revisions occur
- External debt
  - Outstanding external arrears and repayments (if applicable) — Monthly — Month’s end + four weeks
  - Details of all new external borrowing — Monthly — Month’s end + four weeks
- HIPC Initiative
  - Statement of special account at the BCEAO, that receives resources generated by the HIPC Initiative and tracks their use — Monthly — Month’s end + three weeks

*Source: Excerpt from IMF document _cr06107 - 30. The government will provide monthly the following information within six weeks*

### 1.      Government’s development strategy. The government of Burkina Faso outlined its

### 1.      Government’s development strategy

### Government development strategy and PRSP-2
- PRSP-2 adopted by the Council of Ministers on October 27, 2004, accompanied by a Priority Action Program (PAP).
- PAP translates strategic direction into sequenced actions and strengthens results-based monitoring and evaluation of the PRSP.
- The revised PRSP and accompanying PAP were presented to World Bank and IMF Board on May 3, 2005.
- PRSP-2 reaffirms four interrelated pillars:
  - (i) accelerating broad-based growth;
  - (ii) promoting access to social services;
  - (iii) increasing employment and income-generating activities for the poor;
  - (iv) promoting good governance.

### Partnership with the Fund
- IMF support under three PRGF arrangements between 1993 and 2002; currently supported under a fourth PRGF arrangement covering 2003–06.
- First review of the 2003–06 arrangement completed in March 2004; fourth review completed in September 2005.
- IMF role: lead in policy dialogue on macroeconomic policies and monitoring macroeconomic performance through quantitative performance criteria; structural performance criteria in tax policy, financial transparency and good governance, and trade policy.

### World Bank role and areas of support
- Bank supports PRSP implementation in public finance management, good governance, decentralization, health, education, and cotton reform through poverty reduction support credits (PRSC) and projects addressing HIV/AIDS, basic education, transport, water and urban infrastructure, rural development, private sector development, and statistical capacity building.

### Main challenges for the FY06–09 CAS period
- (i) maintaining commitment to reform despite less favorable conditions for growth;
- (ii) overcoming long-standing obstacles to economic diversification;
- (iii) improving the efficiency of public spending for social services, water and sanitation;
- (iv) decentralizing development to enhance pro-poor growth;
- (v) creating a public sector interface that inspires private sector confidence.

### Analytic work and policy assessment
- IDA relied on PRSP and annual progress reports, a second priority poverty survey and two poverty profiles, sectoral policy notes, a comprehensive economic study on long-term sources of growth and competitiveness (2001), a public expenditure review (June 2004), a Poverty Assessment (July 2004), Population Sector Work (April 2005), and Country Procurement Assessment Report (CPAR) (June 2005).
- Emphasis in FY06–09: private sector development (Investment Climate Assessment, Financial Sector Review, Integrated Trade Framework and Labor Market Study), sequencing of decentralization, and addressing persistent malnutrition.

### FY06–09 Country Assistance Strategy (CAS) objectives and intended outcomes
- CAS discussed by the Bank’s Board on June 28, 2005; built around a results framework linking IDA activities to outcomes.
- IDA seeks to contribute to the following outcomes:
  - Accelerated and shared growth: support regional integration, expanded and diversified export earnings, improved investment climate, decentralized urban development, and economic infrastructure to reduce factor costs and stimulate private sector investment and growth.
  - Improved access to basic social services: support access to basic education and improved quality of teaching, expanded coverage of basic health care and HIV/AIDS prevention and treatment, increased access to clean water and sanitation (particularly in urban areas), and technical input for better targeting of social protection.
  - Increased employment and income opportunities for the poor: focus on urban labor market and employment strategy; reduce risk, increase revenues, upgrade economic and market infrastructure, enhance women’s opportunities in rural areas, and promote community-based land and natural resource management.
  - Better governance with greater decentralization: enhance governance and accountability across all sectors, support a more efficient judiciary, promote public resource management, increase decentralization, and strengthen local capacity and participation.

### Key analytical and sectoral priorities for IDA support
- Private sector development, financial sector review, trade framework, labor market study.
- Sequencing and implementation support for decentralization.
- Persistent malnutrition: analysis and programmatic responses.

### Bank-Fund collaboration priorities
- Joint monitoring and policy dialogue on cotton sector and energy sector due to macroeconomic and rural income importance; Fund focuses on financial management of the cotton sector, Bank on structural reforms under PRSCs to create a more competitive environment.
- Collaboration on public finance management and good governance: elements of reform in government action plan, HIPC Assessment and Action Plan, and Country Financial Accountability Assessment (CFAA).
- Joint attention to Auditor General Office functioning, submissions of budget audit laws, revisions of procurement laws and regulations, extension of computerized expenditure circuit, and preparation for political decentralization.
- Fund focus under PRGF: tax administration and tax reform; Bank focus under PRSCs: expenditure management and control reform.
- Joint monitoring of anticorruption policies, including creation of the High Authority to Fight Corruption.
- Promotion of private sector activity: Fund focuses on trade policies and monitoring financial performance of public enterprises; Bank leads on privatization of energy and telecommunications and on removing administrative obstacles to enterprise creation and private investment. IFC and MIGA have intensified support for private sector investment.

### IDA/World Bank portfolio and pipeline (selected figures)
- Bank cumulative commitments to Burkina Faso as of January 31, 2006: US$1,578,635 million equivalent for 75 operations (69 IDA credits and 6 IDA grants).
- Current portfolio: IDA commitments of US$465 million, of which US$285 million is undisbursed.
- Two GEF Projects complement IDA portfolio for a commitment amount of US$12 million, of which $5 million has been disbursed.
- Selected active operations and amounts:
  - PRSC-5 approved May 3, 2005: US$46.1 million equivalent in credit and US$13.9 million equivalent in grant.
  - Community-based rural development program (FY01): US$66.7 million equivalent.
  - Basic education operation (approved January 2002): US$32.6 million equivalent.
  - Development learning center (FY03): US$2.3 million equivalent.
  - HIV/AIDS disaster response project (FY02): US$22 million equivalent; supplemental grant US$5 million approved May 3, 2005.
  - Multi-country HIV/AIDS Treatment Acceleration Program (TAP) includes US$18 million for Burkina.
  - Water supply project (FY01): US$70 million equivalent.
  - Competitiveness and Enterprise Development Project (FY03): US$30.7 million equivalent.
  - Transport sector project (April 2003): US$92.1 million equivalent.
  - Statistical capacity building credit (March 2004): US$10 million equivalent.
  - Administration capacity building grant (March 2005): US$7.0 million equivalent.
  - Power sector development project (approved November 2004): US$63 million equivalent.
- Bank’s proposed FY06–09 lending program:
  - One programmatic development lending operation per fiscal year;
  - Agriculture support through an intensification and market diversification project and follow-up, and second phase of the community-based rural development program;
  - A rural energy project to increase access to infrastructure services for rural communities;
  - A capacity building project to support decentralization agenda;
  - Health/HIV/AIDS and education sector-wide programs;
  - Participation in regional projects to improve infrastructure networks and increase agricultural productivity (regional aviation project, regional transit facilitation project, West Africa power pool project and West African agricultural productivity program).

### Portfolio snapshot (as of January 31, 2006) — selected table totals and indicators
- Total (number of credits/grants: 18) — 477.0 (IDA commitments), 292.0 (undisbursed).
- Overall Result line in operations portfolio table: 464.98 (total), 12.00 (?), 292.00 (undisbursed), 149.48 (?), -12.61 (?).
- Supervision and disbursement indicators included in the portfolio tables and project-level disbursement and undisbursed amounts for active projects.

### IMF PRGF review and disbursement (press release)
- Press Release No. 06/51 — March 13, 2006: IMF Executive Board completed the fifth review under Burkina Faso’s PRGF arrangement and approved a further disbursement of SDR 3.44 million (about US$4.9 million).
- Total amount drawn under the arrangement to date: SDR 20.6 million (about US$29.6 million).
- PRGF loan terms noted: annual interest rate of 0.5 percent; repayable over 10 years with a 5½-year grace period on principal payments.

*Source: World Bank; Press Release No. 06/51, International Monetary Fund.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06107.pdf_