## Press Release: IMF Concludes Staff Visit to Burundi

_IMF News, November 22, 2011_

## Source details

**Canonical URL:** [Press Release: IMF Concludes Staff Visit to Burundi](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr11429)

## Other formats

- [Markdown version](/en/news/articles/2015/09/14/01/49/pr11429/index.md)
- [Structured JSON version](/en/news/articles/2015/09/14/01/49/pr11429/index.json)
- [Bundle manifest](/en/news/articles/2015/09/14/01/49/pr11429/bundle-manifest.json)

## Bibliographic details
- Published: November 22, 2011

---

### Mission and meetings
- Mission leader: Mr. Oral Williams.
- Mission dates: November 8–21, 2011.
- Purpose: Conduct the seventh review of the government’s economic and financial program supported by the IMF under the Extended Credit Facility (ECF); review authorities’ fiscal plans for 2012; discuss key elements of a successor ECF arrangement.
- Senior officials met: Second Vice-President Gervais Rufyikiri; Minister of Finance Clotilde Nizigama; President of the Senate Gabriel Ntisezerana; Minister in Charge of Good Governance and Privatization Jean Baptiste Gahimbare; Governor of the Central Bank Gaspard Sindayigaya; other senior government officials.
- Other consultations: Donor community, private sector, and civil society.

### Macroeconomic assessment and projections
- 2011 growth: "The economy is expected to grow by about 4.2 percent in 2011, lower than earlier projected, owing to a weakening in aggregate demand related to the food and fuel price shock."
- Inflation:
  - Headline inflation: "rose sharply to 11.7 percent in September."
  - Core inflation: "remained in single digits."
- 2012 growth projection: "A rebound in coffee production and construction activity should contribute to a moderate pick-up in growth to 4.8 percent in 2012."
- Key downside risks: "The uncertainty in the external environment owing to weaker growth in trading partners, lower aid flows, and high oil prices remain key downside risks to the macroeconomic outlook."

### Program performance and reforms
- Program assessment: "Performance under the ECF-supported program has been satisfactory, despite difficult economic conditions."
- Structural reform progress: "There was good progress in the implementation of structural reforms focused on public financial management and the safeguard measures at the central bank and the treasury."
- Areas discussed for further reform: Measures to increase revenue mobilization, strengthen public financial management, and improve regulations hampering private sector activity.

### 2012 fiscal outlook and financing
- Budget support: "In 2012, budget support is expected to decline sharply reflecting uncertainties in the global economy."
- Revenue outlook: "While revenue mobilization is likely to strengthen due to ongoing administrative reforms by the Burundi Revenue Authority..."
- Expenditure stance: "...expenditures will have to be contained with a view to limiting recourse to domestic financing."

### Agreement on successor ECF arrangement (2012–14)
- Mission outcome: "The mission reached agreements, ad referendum, on the key elements that would underpin a new ECF arrangement for 2012–14."
- Policy emphases of the proposed arrangement:
  - Greater exchange rate flexibility.
  - Rebuilding of fiscal buffers.
  - Safeguarding fiscal sustainability.
  - Increasing revenue mobilization.
  - Strengthening public financial management.
  - Improving regulations hampering private sector activity.
- Context: These policies "build on the ex-post assessment of longer term program engagement approved by the Executive Board of the IMF in July 2011."

### Next steps
- IMF Executive Board: "The IMF's Executive Board is scheduled to discuss the seventh review of Burundi’s economic program under the ECF and the authorities’ request for a new ECF arrangement for 2012–14 in January 2012."
- Closing comment: The mission "would like to thank the authorities for their warm hospitality and very close and constructive cooperation."

*Press Release No. 11/429, November 22, 2011.*

---


## References

- [Burundi and the IMF](http://www.imf.org/external/country/BDI/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr11429_