Central African Republic: 2023 Article IV Consultation and request for a 38-month arrangement under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Central African Republic
IMF Staff Country Reports, May 2, 2023
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- Central African Republic: 2023 Article IV Consultation and request for a 38-month arrangement under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Central African Republic
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Bibliographic details
- Published: May 2, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400237966.002
Overview
- This paper presents Central African Republic’s (CAR) 2023 Article IV Consultation and Request for a 38-Month Arrangement under the Extended Credit Facility (ECF).
- The ECF-supported program is part of a coordinated effort by international financial institutions that aims to support the people of CAR and avert a humanitarian crisis.
- The program contains important governance safeguards for the use of IMF resources.
Program objectives and expected outcomes
- Help meet CAR’s protracted balance of payments needs.
- Sustain priority spending on basic public services in health and education.
- Provide a policy framework to advance key reforms.
Financing, debt, and risk considerations
- CAR has a high risk of debt distress and a limited revenue base.
- Given these constraints, CAR will have to continue its effort to mobilize grants to finance its economic needs.
- Continued financial and technical support from development partners remains critical to the program’s success.
- Close cooperation with international partners on humanitarian assistance is essential for supporting the population.
Governance and safeguards
- The program contains important governance safeguards for the use of IMF resources.
- Implementation of these safeguards is integral to program credibility and effectiveness.
Regional policy coordination
- CAR’s economic program will continue to be supported by the implementation of policies and reforms agreed among the Central African Economic and Monetary Community regional institutions.
- These regional policies notably aim at supporting an increase in regional net foreign assets and are ultimately critical to program’s success.
Key takeaways
- The 38-Month ECF-supported program targets balance of payments stabilization, protection of spending on health and education, and a policy framework for reforms.
- Success depends on: mobilizing grant financing, continued development partner support, effective governance safeguards, humanitarian cooperation, and regional policy implementation to increase regional net foreign assets.
International Monetary Fund. May 2, 2023. Central African Republic: 2023 Article IV Consultation and request for a 38-month arrangement under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Central African Republic.
Content in this bundle
- 1cafea2023001 - Executive Summary