IMF Management Approves a Staff-Monitored Program for the Central African Republic
IMF News, December 22, 2021
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Bibliographic details
- Published: December 22, 2021
Program details
- Press Release No. 21/396; December 22, 2021.
- The IMF approved a seven-month (December 2021 - June 2022) Staff-Monitored Program (SMP) for the Central African Republic.
- SMPs are informal agreements between country national authorities and IMF staff to monitor the authorities’ economic program; they do not entail endorsement by the IMF Executive Board (with the exception of SMPs under the Heavily Indebted Poor Countries (HIPC) process). SMP staff reports are issued to the Board for information.
Context and rationale
- The deterioration of the security situation in late 2020–early 2021 further deepened C.A.R.’s economic, financial, and social challenges, compounding the adverse effects of the Covid-19 pandemic.
- Despite recent improvements, the outlook remains fragile and securing additional donor financing is described as paramount to help the authorities achieve their development objectives.
- The authorities’ top priority is to foster the recovery from the security crisis and the pandemic.
Support and recent IMF engagement
- Since the pandemic struck, IMF and donor support included:
- Disbursements following the completion of the first and second reviews under the Extended Credit Facility (ECF) supported program in January 2021.
- Emergency financing under the Rapid Credit Facility (RCF) approved in April 2020.
- Participation in debt service relief approved under the Catastrophe Containment and Relief Trust.
- Participation in the G20 Debt Service Suspension Initiative.
- The 2021 General Special Drawing Rights Allocation significantly complemented these efforts.
Policy priorities and reform agenda supported by the SMP
- Strengthening public financial management and fiscal transparency.
- Enhancing domestic revenue mobilization.
- Improving governance, including through the fight against corruption.
- Sustaining initiatives aimed at restoring peace and sustainably financing high-priority expenditures.
Expected outcomes and next steps
- The SMP will provide a roadmap to improve the track record of policy implementation and bring the structural reform agenda back on track.
- Satisfactory implementation of the SMP would pave the way for the resumption of discussions under an ECF-supported program in mid-2022.
Source: IMF Press Release No. 21/396, December 22, 2021. IMF Communications Department; PRESS OFFICER: Eva Graf; Phone: +1 202 623-7100; MEDIA@IMF.org.
References
- Central African Republic and the IMF
- Press Releases
- PRESS CENTER
- Extended Credit Facility (ECF) supported program
- Rapid Credit Facility
- Catastrophe Containment and Relief Trust
- G20 Debt Service Suspension Initiative
- 2021 General Special Drawing Rights Allocation
- Heavily Indebted Poor Countries
- https://www.imf.org/en/home