Cameroon: Fourth Review under the Extended Credit Facility Arrangement and Requests for Waivers of Nonobservance of Performance Criteria and Modification of Performance Criteria
IMF Staff Country Reports, July 25, 2019
Source details
- Canonical URL
- Cameroon: Fourth Review under the Extended Credit Facility Arrangement and Requests for Waivers of Nonobservance of Performance Criteria and Modification of Performance Criteria
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Bibliographic details
- Published: July 25, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513508771.002
Overview
- Paper discusses Cameroon’s Fourth Review Under the Extended Credit Facility Arrangement and Requests for Waivers of Nonobservance of Performance Criteria and Modification of Performance Criteria.
- Growth is estimated to have rebounded to 4 percent in 2018, supported by stronger-than-anticipated oil and gas production and Africa Cup of Nations projects.
- Program implementation has improved from a year ago, however, challenges remain.
Macroeconomic performance and drivers
- Growth: 4 percent in 2018.
- Key growth drivers identified:
- Stronger-than-anticipated oil and gas production.
- Africa Cup of Nations projects.
Program implementation, risks, and debt sustainability
- Program implementation: Improved relative to the prior year, but remaining challenges noted.
- Debt sustainability guidance:
- Refraining from new nonconcessional borrowing is essential to preserving debt sustainability.
- Strict adherence to the disbursement plan for contracted-but-undisbursed loans is essential to preserving debt sustainability.
- Investment and project management:
- Further project prioritization and enhanced investment efficiency recommended to address developmental needs while supporting prudent debt management.
Regional policies and institutional support
- Cameroon’s program benefits from supportive policies and reforms implemented by regional institutions.
- Areas of regional support highlighted:
- Foreign exchange regulations.
- Monetary policy framework.
- Measures to support an increase in regional net foreign assets, which are described as critical to the program’s success.
Key takeaways and policy recommendations
- Avoid new nonconcessional borrowing.
- Strictly adhere to the disbursement plan for contracted-but-undisbursed loans.
- Prioritize projects and improve investment efficiency to meet developmental objectives while maintaining prudent debt management.
- Continue implementing regional reforms in foreign exchange regulation and the monetary policy framework to increase regional net foreign assets.
Source: Cameroon: Fourth Review under the Extended Credit Facility Arrangement and Requests for Waivers of Nonobservance of Performance Criteria and Modification of Performance Criteria — IMF Staff Country Report, July 25, 2019.
Content in this bundle
- 1. Real Sector Developments, 2015–19