{
  "title": "Press Release: IMF Approves Three-Year Arrangement Under the ESAF for Cote d'Ivoire",
  "publication": "IMF News, March 17, 1998",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr9805",
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  "summary": "The IMF approved a three-year arrangement under the Enhanced Structural Adjustment Facility (ESAF) in an amount equivalent to SDR 285.8 million (about US$384 million) to support Côte d’Ivoire’s economic program for 1998-2000.",
  "publishDate": "1998-03-17",
  "sections": [
    {
      "heading": "Arrangement details",
      "content": "- The IMF approved a three-year arrangement under the Enhanced Structural Adjustment Facility (ESAF) in an amount equivalent to SDR 285.8 million (about US$384 million) to support Côte d’Ivoire’s economic program for 1998-2000.\n- The first annual arrangement is equivalent to SDR 123.9 million (about US$167 million) and is available in two semiannual installments.\n- The first installment, in an amount of SDR 83.370 million (about US$112 million), will be available on March 25, 1998.\n- The IMF also considered Côte d’Ivoire’s eligibility under the Initiative for the Highly Indebted Poor Countries."
    },
    {
      "heading": "Background and recent performance (under prior ESAF arrangement)",
      "content": "- Performance under the three-year ESAF arrangement that expired in June 1997 was broadly satisfactory.\n- Progress reported: removing distortions, reducing financial imbalances, containing inflation, improving competitiveness, revitalizing the private sector, and boosting growth.\n- Key historical figures:\n  - Real GDP growth: 6.8 percent in 1996; 6 percent in 1997.\n  - Inflation (consumer prices, end of period): 3.5 percent in 1996; 5.2 percent in 1997.\n  - External current account deficit (percent of GDP): 4.8 percent in 1996; 4.5 percent in 1997.\n- Remaining vulnerabilities and constraints noted: fragile fiscal situation with cash-flow difficulties and weaknesses in expenditure control; private sector development below expectations; need for further liberalization of the cocoa and coffee sectors; governance issues requiring forceful action to ensure transparency and sound management of public resources."
    },
    {
      "heading": "Medium-term strategy and 1998 program objectives (1998–2000)",
      "content": "- Three key policy components:\n  - Prudent fiscal policy to bring the budget close to balance by 2000 and achieve a surplus thereafter.\n  - Structural reforms to promote private sector development and investment, including foreign direct and portfolio investment.\n  - Ambitious social development agenda to reduce poverty through well-targeted and efficient public spending on education and health.\n- Basic macroeconomic objectives for 1998-2000:\n  - Achieve real GDP growth of about 6 percent a year, allowing per capita income to rise by more than 2 percent annually.\n  - Maintain an inflation rate of about 3 percent a year, consistent with the exchange rate peg (of the CFA franc vis-à-vis the French franc).\n  - Lower the external current account deficit to 2 percent of GDP by 2000.\n- 1998 program targets (supported by the first annual ESAF loan):\n  - Achieve a real GDP growth rate of 6 percent.\n  - Limit inflation to 3 percent.\n  - Narrow the external current account deficit to 4.1 percent of GDP.\n- Fiscal policy specifics:\n  - Reduce the overall deficit to 1.5 percent of GDP in 1998, from 2 percent in 1997.\n  - Revenue-side measures: improve efficiency in customs and tax administration, reduce fraud, broaden the tax base.\n  - Expenditure-side measures: pursue prudent policy while adequately providing for basic health and education services and infrastructure maintenance.\n- Monetary policy: conducted at the regional level, to remain consistent with the fixed exchange rate regime and to aim for a further improvement of the CFA franc zone’s net foreign assets position."
    },
    {
      "heading": "Structural reforms",
      "content": "- Authorities accelerating implementation of unfinished structural reform agenda, particularly:\n  - Trade and price liberalization (pursued in the context of regional arrangements).\n  - Coffee marketing to be fully liberalized in October 1998.\n  - Cocoa marketing to be fully liberalized in October 1999.\n  - Privatization to be accelerated with the sale of 15 enterprises in 1998."
    },
    {
      "heading": "Social policy and poverty reduction",
      "content": "- Strategy: sustained high economic growth plus social policies and measures targeted to the most vulnerable groups.\n- Government actions:\n  - Comprehensive poverty reduction action plan adopted in June 1997 with specific measures targeting the poor.\n  - Continued redirection of public spending in favor of education, health, and infrastructure maintenance.\n  - Establishment of a steering committee to supervise actions under the poverty plan and to establish a system to monitor poverty indicators."
    },
    {
      "heading": "Challenges ahead",
      "content": "- Poverty reduction remains a major challenge given the strong deterioration in living standards during the economic decline from the mid-1980s to the early 1990s.\n- Need for further fiscal consolidation to achieve financial viability over the medium term and to increase public saving.\n- Crucial actions required:\n  - Strengthen government revenue performance and expenditure controls.\n  - Ensure transparency and sound management of public resources.\n  - Carry out the next phase of structural reforms with strong resolve to foster private sector confidence.\n  - Ensure good governance and strengthen the judicial system."
    },
    {
      "heading": "IMF membership and outstanding use",
      "content": "- Côte d’Ivoire joined the IMF on March 11, 1963.\n- Quota: SDR 238.2 million (about US$320 million).\n- Outstanding use of IMF financing currently totals SDR 333 million (about US$448 million)."
    },
    {
      "heading": "Selected economic indicators (as presented)",
      "content": "- Real GDP: 6.8 (1996); 6.0 (1997); 5.8 (1998).\n- Real per capita GDP: 3.1 (1996); 2.3 (1997); 2.1 (1998).\n- Consumer prices (end of period): 3.5 (1996); 5.2 (1997); 3.0 (1998); 2.5 (1999).\n- Overall fiscal balance (deficit -): -2.1 (1996); -2.0 (1997); -1.5 (1998); -0.8 (1999); -0.3 (2000).\n- External current account balance, excluding official transfers (deficit -): -4.8 (1996); -4.5 (1997); -4.1 (1998); -3.2 (1999).\n- Source of indicators: Côte d’Ivoire authorities, and IMF staff estimates and projections.\n- Note:  Estimates; Program.\n\nSource: Press Release No. 98/5, March 17, 1998, IMF EXTERNAL RELATIONS DEPARTMENT.\n\n---\n\n\n References\n\n- Côte d'Ivoire and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr9805"
    }
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    "Published: March 17, 1998",
    "The IMF approved a three-year arrangement under the Enhanced Structural Adjustment Facility (ESAF) in an amount equivalent to SDR 285.8 million (about US$384 million) to support Côte d’Ivoire’s economic program for 1998-2000.",
    "The first annual arrangement is equivalent to SDR 123.9 million (about US$167 million) and is available in two semiannual installments.",
    "The first installment, in an amount of SDR 83.370 million (about US$112 million), will be available on March 25, 1998.",
    "The IMF also considered Côte d’Ivoire’s eligibility under the Initiative for the Highly Indebted Poor Countries.",
    "Performance under the three-year ESAF arrangement that expired in June 1997 was broadly satisfactory.",
    "Progress reported: removing distortions, reducing financial imbalances, containing inflation, improving competitiveness, revitalizing the private sector, and boosting growth.",
    "Key historical figures:",
    "Remaining vulnerabilities and constraints noted: fragile fiscal situation with cash-flow difficulties and weaknesses in expenditure control; private sector development below expectations; need for further liberalization of the cocoa and coffee sectors; governance issues requiring forceful action to ensure transparency and sound management of public resources.",
    "Three key policy components:",
    "Basic macroeconomic objectives for 1998-2000:",
    "1998 program targets (supported by the first annual ESAF loan):",
    "Fiscal policy specifics:",
    "Monetary policy: conducted at the regional level, to remain consistent with the fixed exchange rate regime and to aim for a further improvement of the CFA franc zone’s net foreign assets position.",
    "Authorities accelerating implementation of unfinished structural reform agenda, particularly:",
    "Strategy: sustained high economic growth plus social policies and measures targeted to the most vulnerable groups.",
    "Government actions:",
    "Poverty reduction remains a major challenge given the strong deterioration in living standards during the economic decline from the mid-1980s to the early 1990s.",
    "Need for further fiscal consolidation to achieve financial viability over the medium term and to increase public saving.",
    "Crucial actions required:",
    "Côte d’Ivoire joined the IMF on March 11, 1963.",
    "Quota: SDR 238.2 million (about US$320 million).",
    "Outstanding use of IMF financing currently totals SDR 333 million (about US$448 million).",
    "Real GDP: 6.8 (1996); 6.0 (1997); 5.8 (1998**).",
    "Real per capita GDP: 3.1 (1996); 2.3 (1997); 2.1 (1998**).",
    "Consumer prices (end of period): 3.5 (1996); 5.2 (1997); 3.0 (1998**); 2.5 (1999**).",
    "Overall fiscal balance (deficit -): -2.1 (1996); -2.0 (1997); -1.5 (1998**); -0.8 (1999**); -0.3 (2000**).",
    "External current account balance, excluding official transfers (deficit -): -4.8 (1996); -4.5 (1997); -4.1 (1998**); -3.2 (1999**).",
    "Source of indicators: Côte d’Ivoire authorities, and IMF staff estimates and projections.",
    "Note: * Estimates; **Program.",
    "[Côte d'Ivoire and the IMF](http://www.imf.org/external/country/CIV/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)"
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