## IMF Executive Board Completes First Review of Extended Credit Facility Arrangement for Cameroon and Approves US$ 117.2 Million Disbursement

_IMF News, December 20, 2017_

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## Bibliographic details
- Published: December 20, 2017

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### Review outcome and disbursement
- Executive Board completed the first review of the arrangement under the Extended Credit Facility (ECF) for Cameroon (Press Release No. 17/512).
- The completion of the review enables the disbursement of SDR 82.8 million (about US$ 117.2 million).
- Total disbursements under the arrangement now amount to SDR 207 million (about US$ 292.9 million).

### Program size, objective, and approval
- Cameroon’s three-year arrangement size: SDR 483 million (about US$ about US$683.5 million, or 175 percent of Cameroon’s quota).
- Arrangement approval date: June 26, 2017 (see Press Release No.17/248).
- Program aims: support efforts to restore external and fiscal sustainability and lay foundations for sustainable, inclusive and private sector-led growth.

### Waiver and conditionality
- The Executive Board approved the authorities’ request for waiving the non-observance of the continuous performance criteria on the ceiling on new non-concessional external debt contracted or guaranteed by the government.
- Waiver granted on the basis of corrective measures taken by the authorities.

### Assessment of performance and risks (statement by Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair)
- Overall assessment: “Cameroon’s performance under the ECF-supported arrangement has been broadly satisfactory.”
- Fiscal stance: Authorities remain fully committed to fiscal consolidation; the 2018 budget is in line with program objectives.
- Risks to targets: Meeting deficit targets may be challenging given weaker-than-envisaged revenue and spending pressures in 2018 and 2019.
- Regional context: Fiscal and external adjustment in Cameroon and other CEMAC countries, combined with external financing, have led to a gradual buildup in CEMAC reserves; the region’s recovery remains fragile.
- Leadership note: “Cameroon’s continued leadership of the regional effort will be essential to sustainability.”

### Policy recommendations and priorities
- Revenue and spending:
  - Stepped-up efforts to expand the non-oil revenue base.
  - Better prioritizing spending while preserving social spending.
- Borrowing and debt sustainability:
  - New non-concessional borrowing should be strictly limited and reserved for projects with a high social or growth impact.
  - Stepped up efforts to enhance public financial and debt management to improve spending efficiency and control fiscal risks.
- Growth and structural reform:
  - Implement the interim 2018–20 growth and employment strategy to boost private sector investment, job creation, and economic diversification.
  - Prioritize reforms to enhance delivery of basic social services and protect the poor, improve the business environment, and maintain financial stability while expanding access to financial services.

### Role of regional institutions and supportive policies
- Program support depends on implementation of supportive policies and reforms by regional institutions, including:
  - Tighter monetary policy.
  - Elimination of statutory advances.
  - Sound bank regulation and supervision.
  - Firm controls over the extension of credit to banks.

*IMF Press Release No. 17/512 — December 20, 2017*

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## References

- [The Executive Board](http://www.imf.org/external/np/sec/memdir/eds.aspx)
- [Mitsuhiro Furusawa](http://www.imf.org/external/np/omd/bios/mf.htm)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No.17/248](http://www.imf.org/en/News/Articles/2017/06/26/pr17248-imf-executive-board-approves-arrangement-under-the-extended-credit-facility-for-cameroon)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/12/20/pr17512-extended-credit-facility-arrangement-for-cameroon_