## IMF Executive Board Completes Second Review Under the ECF Arrangement for the Central African Republic, Approves US$16.3 Million Disbursement, and an Augmentation of US$15.5 Million

_IMF News, July 17, 2017_

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## Bibliographic details
- Published: July 17, 2017

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### Executive summary and actions taken
- On July 17, 2017, the IMF Executive Board completed the second review under the Extended Credit Facility (ECF) arrangement for the Central African Republic.
- The completion of the review enables a disbursement of SDR 11.70 million (about US$16.3 million).
- The Executive Board approved an augmentation of the ECF arrangement of SDR 11.14 million (about US$15.5 million), to be disbursed upon completion of the third review.
- The augmentation is intended to meet additional balance of payments needs associated with the accelerated clearance of arrears to small and medium sized government suppliers.

### Financing envelope and disbursements
- Original ECF approval (July 20, 2016): SDR 83.55 million (about US$116.5 million), representing 75 percent of Central African Republic’s quota at the IMF.
- Total disbursements after this review: SDR 36.75 million (about US$51.2 million).
- Augmentation approved: SDR 11.14 million (about US$15.5 million).
- Total financing approved after augmentation: SDR 94.69 million (about US$132 million), representing 85 percent of the country’s IMF quota.

### Program performance and macroeconomic context
- Performance under the ECF-supported program has been described as satisfactory despite the challenging security environment.
- The program aims to create fiscal space for development spending, improve the business environment, and foster higher and more inclusive growth.
- Given the country’s high risk of debt distress, continued reliance on grant financing, while limiting borrowing, even in highly concessional terms, is emphasized.

### Policy measures, priorities, and recommendations (as stated by Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair)
- Fiscal strategy:
  - Remain anchored in the domestic primary balance objective.
  - Sustain and accelerate efforts to mobilize domestic revenues—particularly at customs.
  - Enhance budget transparency to create fiscal space for increasing social and capital spending.
- Public financial management:
  - Ensure regular publication of budget execution reports.
  - Consolidate the treasury single account.
  - Limit the use of exceptional spending procedures.
- Arrears and credibility:
  - Reduce domestic payment arrears to small and medium-sized enterprises to support growth, restore the state’s credibility, and contribute to social cohesion.
- Investment and growth:
  - Swift implementation of the National Plan for Recovery and Peace’s investment program to boost economic prospects.
  - Channel available assistance effectively into priority projects to lift economic growth, create jobs, and reduce poverty.
- Debt and financing strategy:
  - Given high risk of debt distress, prioritize grant financing and limit borrowing, including in highly concessional terms.
- Regional coordination:
  - Program success depends on supportive policies and reforms by regional institutions.

### Intended impact of augmentation
- The augmentation aims to support accelerated clearance of arrears to small and medium sized government suppliers, thereby supporting social cohesion and economic growth.

*Press Release No. 17/287 — July 17, 2017 — IMF Communications Department*

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## References

- [Mitsuhiro Furusawa](http://www.imf.org/external/np/omd/bios/mf.htm)
- [The Executive Board](http://www.imf.org/external/np/sec/memdir/eds.aspx)
- [Central African Republic and the IMF](http://www.imf.org/external/country/CAF/index.htm)
- [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No. 16/352](http://www.imf.org/en/News/Articles/2016/07/21/20/54/PR16352-Central-African-Republic-IMF-Executive-Board-Approves-Three-Year-Arrangement-Under-the-ECF)
- [ECF](http://www.imf.org/external/np/exr/facts/ecf.htm)
- [www.imf.org/external/country/CAF](http://www.imf.org/external/country/CAF)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/07/17/pr17287-imf-executive-board-completes-second-review-under-the-ecf-arrangement-for_