## IMF Executive Board Completes Fourth ECF Review for Cameroon and Approves US$76.2 Million Disbursement

_IMF News, July 17, 2019_

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## Bibliographic details
- Published: July 17, 2019

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### Overview
- The Executive Board completed the fourth review of the arrangement under the Extended Credit Facility (ECF) for Cameroon on July 17, 2019.
- The completion of the review enables a disbursement and reflects the program’s aim to restore external and fiscal sustainability and lay foundations for more sustainable, inclusive and private sector-led growth.

### Financial disbursements and program status
- Disbursement enabled by the review: SDR 55.2 million (about US$76.2 million).
- Total disbursements under the arrangement after this review: SDR 372.6 million (about US$514.5 million).
- Original arrangement approval: June 26, 2017 for SDR 483 million (about US$666.9million, or 175 percent of Cameroon’s quota).
- The Executive Board approved a waiver for non-observance of the performance criteria pertaining to:
  - the external arrears’ accumulation, and
  - the ceiling on net BEAC financing,
  based on corrective actions taken by the authorities.

### IMF assessment and performance findings
- “Cameroon’s performance under the ECF-supported program has improved from a year ago.”
- Most end-December 2018 targets including on the fiscal deficit have been met.
- Structural reforms are advancing.
- Cameroon continues to play a leadership role in the rebuilding of CEMAC’s fiscal and external buffers.
- Regional institutional support (foreign exchange regulations and monetary policy framework) is important to support an increase in regional net foreign assets and the program’s success.

### Policy recommendations and conditional actions (from the IMF statement)
- “Going forward, the Cameroonian authorities’ continued support of the implementation of the BEAC’s foreign exchange regulation will be essential to ensure full repatriation of foreign exchange receipts.”
- “Enhanced fiscal discipline is key to reaching the end-2019 program targets and mitigating risks from external shocks and security challenges.”
- Reduce recourse to exceptional spending procedures and complete the Treasury Single Account reform to:
  - support the implementation of the 2019 budget,
  - improve cash management, and
  - improve the transparency of budget execution.
- Refrain from new non-concessional borrowing and strictly adhere to the disbursement plan for contracted-but-undisbursed loans to preserve debt sustainability.
- Further project prioritization and enhanced investment efficiency to address developmental needs while supporting prudent debt management.
- Improve financial viability of key public enterprises through performance contracts and targeted reforms of administered prices to reduce reliance on subsidies and mitigate contingent liabilities.
- Enhance financial inclusion, the business climate, and governance to promote private sector development and competitiveness, including:
  - further strengthening EITI compliance, and
  - strengthening the AML/CFT framework to promote private sector-led growth and attract foreign investment.

### Key statistics and dates
- Review completion date: July 17, 2019.
- Disbursement amount enabled: SDR 55.2 million (about US$76.2 million).
- Cumulative disbursements after review: SDR 372.6 million (about US$514.5 million).
- Original arrangement: approved June 26, 2017 for SDR 483 million (about US$666.9million, or 175 percent of Cameroon’s quota).
- Press Release No.: 19/288.

*Source: IMF press release, July 17, 2019.*

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## References

- [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/2019/07/17/pr19288-cameroon-imf-executive-board-completes-fourth-ecf-review-approves-disbursement_