Central African Republic: Sixth Review Under the Extended Credit Facility Arrangement, Requests for Waivers of Nonobservance of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Central African Republic

IMF Staff Country Reports, July 9, 2019

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Canonical URL: Central African Republic: Sixth Review Under the Extended Credit Facility Arrangement, Requests for Waivers of Nonobservance of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Central African Republic

President Touadéra signed a new peace agreement on February 6, 2019 with 14 armed groups.
The agreement calls for:
- the establishment of an inclusive government,
- the deployment of joint brigades,
- an acceleration of decentralization efforts,
- the co-management of natural resources.
Implementation has started, including the appointment of a more inclusive government, but the security situation remains volatile.
The World Bank (WB) and the European Union (EU) have substantially increased their budgetary support (grants) for 2019–20.
The authorities have expressed a strong interest in a successor arrangement.

Peace agreement provisions and early implementation actions aim to broaden political inclusion and improve security sector arrangements.
Continued volatility in security conditions poses risks to implementation and macroeconomic stability.
Increased grant support from the WB and EU for 2019–20 provides significant external budgetary resources.
Authorities are interested in negotiating a successor arrangement with the IMF.

Subject: Arrears, Budget planning and preparation, External debt, Public debt, Public financial management (PFM), Revenue administration
Keywords: Arrears, assessment of policy issue, assessment of the ability, Budget planning and preparation, CR, debt, ECF arrangement, financing, Global, government, IMF's Executive Board, ISCR, peace agreement