IMF Executive Board Completes Fourth ECF Review for Cameroon and Approves US$76.2 Million Disbursement
IMF News, July 17, 2019
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Bibliographic details
- Published: July 17, 2019
Overview
- The Executive Board completed the fourth review of the arrangement under the Extended Credit Facility (ECF) for Cameroon on July 17, 2019.
- The completion of the review enables a disbursement and reflects the program’s aim to restore external and fiscal sustainability and lay foundations for more sustainable, inclusive and private sector-led growth.
Financial disbursements and program status
- Disbursement enabled by the review: SDR 55.2 million (about US$76.2 million).
- Total disbursements under the arrangement after this review: SDR 372.6 million (about US$514.5 million).
- Original arrangement approval: June 26, 2017 for SDR 483 million (about US$666.9million, or 175 percent of Cameroon’s quota).
- The Executive Board approved a waiver for non-observance of the performance criteria pertaining to:
- the external arrears’ accumulation, and
- the ceiling on net BEAC financing,
based on corrective actions taken by the authorities.
IMF assessment and performance findings
- “Cameroon’s performance under the ECF-supported program has improved from a year ago.”
- Most end-December 2018 targets including on the fiscal deficit have been met.
- Structural reforms are advancing.
- Cameroon continues to play a leadership role in the rebuilding of CEMAC’s fiscal and external buffers.
- Regional institutional support (foreign exchange regulations and monetary policy framework) is important to support an increase in regional net foreign assets and the program’s success.
Policy recommendations and conditional actions (from the IMF statement)
- “Going forward, the Cameroonian authorities’ continued support of the implementation of the BEAC’s foreign exchange regulation will be essential to ensure full repatriation of foreign exchange receipts.”
- “Enhanced fiscal discipline is key to reaching the end-2019 program targets and mitigating risks from external shocks and security challenges.”
- Reduce recourse to exceptional spending procedures and complete the Treasury Single Account reform to:
- support the implementation of the 2019 budget,
- improve cash management, and
- improve the transparency of budget execution.
- Refrain from new non-concessional borrowing and strictly adhere to the disbursement plan for contracted-but-undisbursed loans to preserve debt sustainability.
- Further project prioritization and enhanced investment efficiency to address developmental needs while supporting prudent debt management.
- Improve financial viability of key public enterprises through performance contracts and targeted reforms of administered prices to reduce reliance on subsidies and mitigate contingent liabilities.
- Enhance financial inclusion, the business climate, and governance to promote private sector development and competitiveness, including:
- further strengthening EITI compliance, and
- strengthening the AML/CFT framework to promote private sector-led growth and attract foreign investment.
Key statistics and dates
- Review completion date: July 17, 2019.
- Disbursement amount enabled: SDR 55.2 million (about US$76.2 million).
- Cumulative disbursements after review: SDR 372.6 million (about US$514.5 million).
- Original arrangement: approved June 26, 2017 for SDR 483 million (about US$666.9million, or 175 percent of Cameroon’s quota).
- Press Release No.: 19/288.
Source: IMF press release, July 17, 2019.