Central African Republic: Request for a Three-Year Arrangement Under the Extended Credit Facility: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Central African Republic.

IMF Staff Country Reports, August 13, 2012

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Canonical URL: Central African Republic: Request for a Three-Year Arrangement Under the Extended Credit Facility: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Central African Republic.

Political and economic uncertainties in the Central African Republic (C.A.R.) have abated, but the sociopolitical environment remains fragile.
Institutional weaknesses, limited and volatile aid flows, and persistently low domestic resource mobilization have slowed the efforts and considerable transition out of fragility.
The resumption of donor budget support will close the financing gap and increase poverty and infrastructure spending.
Implementation of structural reforms needs to be accelerated to support the government’s medium-term objectives.
Strengthening debt management capacity to effectively monitor debt development is essential.

Political and economic uncertainties: have abated but the sociopolitical environment remains fragile.
Institutional constraints: weaknesses continue to slow the transition out of fragility.
Aid dynamics: donor budget support is limited and volatile; resumption is expected to close the financing gap.
Domestic revenue: persistently low domestic resource mobilization is a binding constraint.
Spending composition: resumption of donor budget support will increase poverty and infrastructure spending.
Reform implementation: structural reforms need to be accelerated to meet medium-term objectives.
Debt monitoring: enhanced debt management capacity is essential to effectively monitor debt development.

Resume and sustain donor budget support to close the financing gap and enable increased poverty and infrastructure spending.
Accelerate implementation of structural reforms to support medium-term objectives.
Strengthen debt management capacity to effectively monitor debt development.
Improve domestic resource mobilization to reduce reliance on volatile aid flows.
Address institutional weaknesses to facilitate the transition out of fragility.

Subject: Budget execution and treasury management, Credit, Expenditure, Money, Public debt, Public financial management (PFM), Revenue administration
Keywords: Africa, authority, Budget execution and treasury management, Central Africa, Central African Republic authorities, Central African Republic's authorities, CR, Credit, development partner, ECF program, exploitation, Global, growth outlook, IMF support, ISCR, policy, West Africa