Central African Republic: Request for a Three-Year Arrangement under the Extended Credit Facility-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for the Central African Republic

IMF Staff Country Reports, January 13, 2020

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The paper discusses Central African Republic’s (CAR) Request for a Three-Year Arrangement Under the Extended Credit Facility.
The IMF-supported program is expected to support the implementation of the peace agreement and CAR’s medium-term development strategy.
Main objectives:
- Maintain macroeconomic stability.
- Strengthen administrative capacity, governance, and the business climate.
- Address CAR’s protracted balance of payments needs.
The new arrangement is intended to help catalyze external concessional financing from other development partners, which is described as critical to support CAR’s path out of fragility.
The IMF will continue extensive capacity development aligned with program objectives.

Fiscal policy will focus on:
- Revenue mobilization.
- Spending prioritization.
- Strengthening public financial management.
The fiscal stance aims to allow, over the medium term, the durable financing of CAR’s considerable security, social, and infrastructure spending needs.

Structural reforms will aim at:
- Improving the government’s capacity to design and implement policies and reforms.
- Enhancing governance, including through strengthening anticorruption institutions.
- Removing bottlenecks and regulatory impediments to private investment.

The arrangement is expected to:
- Catalyze external concessional financing from other development partners.
- Be complemented by the IMF’s extensive capacity development on priorities aligned with program objectives.