{
  "title": "IMF Executive Board Approves US$282.8 Million Three-Year Extended Fund Facility Arrangement for Equatorial Guinea",
  "publication": "IMF News, December 18, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/12/18/pr19472-equitorial-guinea-imf-executive-board-approves-us-million-three-year-eff-arrangement",
  "canonical": "https://www.imf.org/en/news/articles/2019/12/18/pr19472-equitorial-guinea-imf-executive-board-approves-us-million-three-year-eff-arrangement",
  "overlayPath": "/en/news/articles/2019/12/18/pr19472-equitorial-guinea-imf-executive-board-approves-us-million-three-year-eff-arrangement/index.md",
  "summary": "Approved on December 18, 2019: a three-year arrangement under the IMF’s Extended Fund Facility (EFF) for Equatorial Guinea in an amount equivalent to SDR205.009 million (about US$282.8 million, or 130 percent of Equatorial Guinea’s quota in the Fund).",
  "publishDate": "2019-12-18",
  "sections": [
    {
      "heading": "Program overview",
      "content": "- Approved on December 18, 2019: a three-year arrangement under the IMF’s Extended Fund Facility (EFF) for Equatorial Guinea in an amount equivalent to SDR205.009 million (about US$282.8 million, or 130 percent of Equatorial Guinea’s quota in the Fund).\n- Program aims:\n  - further reduce macroeconomic imbalances and address financial sector vulnerabilities;\n  - improve social protection and human capital development;\n  - promote economic diversification;\n  - foster good governance, increase transparency and fight corruption;\n  - catalyze additional external resources and contribute to rebuilding CEMAC regional reserves."
    },
    {
      "heading": "Executive Board decision and disbursement",
      "content": "- Immediate disbursement enabled: SDR29.287 million (about US$40.4 million).\n- Remaining amount to be phased in over the program duration, subject to semi-annual reviews by the Executive Board.\n- Board approval required three key prior actions focusing on governance and transparency:\n  - submission of an Extractive Industries Transparency Initiative (EITI) membership application;\n  - operationalization of a system to adequately track and control government expenditures;\n  - publication of a governance diagnostic report and the authorities’ “good governance and anti-corruption action plan” developed in consultation with Fund staff."
    },
    {
      "heading": "Key messages from Tao Zhang (Deputy Managing Director and Acting Chair)",
      "content": "- Recent shocks and challenges:\n  - sharp decline in oil prices and a secular decline in hydrocarbon output led to large macroeconomic imbalances and negative economic growth;\n  - longstanding governance and corruption problems have affected the economy.\n- Program priorities:\n  - (i) preserve macroeconomic and financial stability;\n  - (ii) improve governance and fight corruption;\n  - (iii) support human capital development and improve social protection;\n  - (iv) promote economic diversification.\n- Implementation emphasis:\n  - strict implementation of authorities’ commitments and adherence to a firm timetable is essential;\n  - the Fund will conduct a fiscal safeguard review in early 2020."
    },
    {
      "heading": "Governance, transparency and anti-corruption measures",
      "content": "- Priority actions identified:\n  - strengthen the anti-corruption framework by addressing conflict of interests and adopting and enforcing a robust asset declaration regime for senior public officials;\n  - foster hydrocarbon sector transparency, including publication of all active oil and gas contracts, audits of GEPetrol and SONAGAS, reports on hydrocarbon sector data and information, and EITI membership;\n  - further improve public financial management (PFM);\n  - strengthen the rule of law and the AML/CFT framework.\n- Additional measures:\n  - enhance enforcement and international cooperation;\n  - report suspicious activities related to politically exposed persons;\n  - enhance the transparency of companies by making beneficial ownership information available."
    },
    {
      "heading": "Fiscal and structural measures",
      "content": "- Fiscal objectives:\n  - sustained fiscal consolidation to address permanent decline in hydrocarbon revenue, maintain debt sustainability, and strengthen the external position;\n  - reduce low-efficiency capital expenditures and increase non-hydrocarbon revenue;\n  - shift expenditure composition away from capital outlays to create space for higher social spending.\n- Tax and revenue measures:\n  - adoption of a new excise tax law on imported beverages, tobacco and vehicles;\n  - continued efforts to limit tax fraud and exemptions, strengthen large-taxpayer management, and improve customs enforcement.\n- Structural reforms:\n  - reforms to improve the business environment and promote economic diversification to support sustainable and inclusive growth."
    },
    {
      "heading": "Banking sector, arrears clearance, and financial stability",
      "content": "- Banking sector weaknesses:\n  - high non-performing loans related to government arrears hindering recovery of the non-oil sector;\n  - need to address undercapitalized banks.\n- Arrears clearance strategy:\n  - clearance of domestic arrears envisaged through government bond issuance once the ongoing arrears audit is concluded, with sizeable amortization during the arrangement period;\n  - clearance of external arrears to official creditors by the first review under the EFF-arrangement.\n- Banking-sector stabilization:\n  - recapitalization of banks with capital shortfalls;\n  - close cooperation with the Central African banking Commission (COBAC) to ensure all banks fully meet COBAC regulations, particularly prudential, governance, and AML/CFT requirements;\n  - permanently reduce BEAC short-term liquidity support to banks to levels consistent with COBAC norms."
    },
    {
      "heading": "Risks and mitigation",
      "content": "- Downside risks to program implementation:\n  - volatility in hydrocarbon prices;\n  - PFM, governance and corruption vulnerabilities.\n- Mitigating factors:\n  - possibility of higher hydrocarbon output than envisaged in the program;\n  - frontloading of key PFM, governance and anti-corruption measures;\n  - authorities’ strong commitment to reforms."
    },
    {
      "heading": "Selected economic and financial indicators (2015–24) — key figures preserved exactly as presented",
      "content": "- Real GDP (annual percent change): 2015: -9.1; 2016: -8.8; 2017: -4.7; 2018: -5.7; 2019: -5.9; 2020 (Est.): -1.9; 2021 (Program): 1.0; 2022: -1.2; 2023: -1.4; 2024: [no number in source].\n- Hydrocarbon sectors (annual percent change): 2015: -9.4; 2016: -8.2; 2017: -5.6; 2018: -9.7; 2019: -10.4; 2020: -5.0; 2021: -0.6; 2022: -11.3; 2023: -5.5; 2024: -6.4.\n- Non-hydrocarbon sectors (annual percent change): 2015: -3.4; 2016: 0.0; 2017: 1.7; 2018: 2.9; 2019: 2.2; 2020: 2.8; 2021: 2.7.\n- GDP deflator (annual percent change): 2015: -20.2; 2016: -6.3; 2017: 12.7; 2018: 13.1; 2019: -3.2; 2020: 0.4; 2021: 2.4.\n- Consumer prices (annual average): 2015: 1.4; 2016: 0.7; 2017: 1.3; 2018: 0.9; 2019: 1.8; 2020: 1.9.\n- Broad money (annual percent change): 2015: -10.9; 2016: -16.4; 2017: -0.8; 2018: 3.7; 2019: 4.9; 2020: 4.3; 2021: 5.0.\n- Exports, f.o.b. (annual percent change): 2015: -46.1; 2016: -26.9; 2017: 10.5; 2018: 11.6; 2019: -19.2; 2020: -7.9; 2021: -6.1; 2022: -11.9; 2023: -4.6.\n- Hydrocarbon exports (annual percent change): 2015: -47.5; 2016: -25.9; 2017: 9.6; 2018: 12.4; 2019: -18.9; 2020: -8.6; 2021: -6.8; 2022: -13.0; 2023: -6.0.\n- Non-hydrocarbon exports (annual percent change): 2015: 34.6; 2016: -49.4; 2017: 39.6; 2018: -27.9; 2019: 14.9; 2020: 13.5; 2021: 11.9; 2022: 12.1.\n- Imports, f.o.b. (annual percent change): 2015: -23.1; 2016: -33.9; 2017: -13.2; 2018: 9.5; 2019: -17.8; 2020: -3.3; 2021: -12.5; 2022: -1.7.\n- Gross investment (percent of GDP): 2015: 24.7; 2016: 16.7; 2017: 12.6; 2018: 12.0; 2019: 12.2; 2020: 11.7; 2021: 12.3.\n- Gross national savings (percent of GDP): 2015: 8.3; 2016: 6.8; 2017: 6.6; 2018: 6.5; 2019: 7.3; 2020: 7.9; 2021: 8.1; 2022: 8.6; 2023: 8.5.\n- Of which: hydrocarbon revenue (percent of GDP): 2015: 22.2; 2016: 12.8; 2017: 13.8; 2018: 15.5; 2019: 14.3; 2020: 11.4; 2021: 10.1; 2022: 9.3.\n- Non-hydrocarbon revenue (percent of GDP): 2015: 4.1; 2016: 3.5; 2017: 4.7; 2018: 6.1; 2019: 7.1.\n- Overall fiscal balance (Commitment basis, percent of GDP): 2015: -15.1; 2016: -2.6; 2017: 2.3.\n- Overall fiscal balance (Cash basis)2: 2015: -2.9; 2016: -4.9; 2017: -21.3.\n- Non-hydrocarbon primary balance3 (percent of GDP): 2015: -37.0; 2016: -23.5; 2017: -16.1; 2018: -14.4; 2019: -12.4; 2020: -10.6; 2021: -8.1; 2022: -6.2.\n- Outstanding public debt4 (percent of GDP): 2015: 33.6; 2016: 43.4; 2017: 38.0; 2018: 43.0; 2019: 46.2; 2020: 46.6; 2021: 45.3; 2022: 44.4; 2023: 41.4; 2024: 38.5.\n- Change in domestic arrears (percent of GDP): 2015: 3.0; 2016: -2.3; 2017: -2.0; 2018: -22.4.\n- Current account balance (including official transfers; - = deficit): 2015: -5.8; 2016: -3.8; 2017: -4.1; 2018: -3.9.\n- Total external public debt (percent of GDP): 2015: 9.0; 2016: 11.2; 2017: 13.0; 2018: 14.8; 2019: 16.2; 2020: 15.6.\n- Debt service-to-exports ratio (percent): 2015: 5.8; 2016: 3.3; 2017: 6.3; 2018: 6.7; 2019: 9.8.\n- External debt service/government revenue (percent): 2015: 5.9; 2016: 6.9; 2017: 11.8; 2018: 15.4; 2019: 14.2.\n- Reserve assets at the BEAC (months of next years' imports): 2015: 0.1; 2016: 4.5; 2017: n.a.\n- CEMAC Foreign Reserves (US$ billions, end-of-period): 2015: 10.3; 2016: 12.5; 2017: 13.9.\n- CEMAC reserves (in months of extra zone imports): 2015: 4.4; 2016: 4.2; 2017: 4.8; 2018: 5.3; 2019: 5.6.\n- Oil price (U.S. dollars a barrel)5: 2015: 47.0; 2016: 39.0; 2017: 51.4; 2018: 67.2; 2019: 59.7; 2020: 56.7; 2021: 54.3; 2022: 53.7; 2023: 53.9; 2024: 54.5.\n- Nominal GDP (billions of CFA francs): 2015: 7,795; 2016: 6,661; 2017: 7,152; 2018: 7,624; 2019: 6,950; 2020: 6,842; 2021: 6,875; 2022: 6,726; 2023: 6,806; 2024: 6,898.\n- Nominal GDP (millions of US dollars): 2015: 13,180; 2016: 11,233; 2017: 12,287; 2018: 13,732; 2019: 11,864; 2020: 11,639; 2021: 11,824; 2022: 11,685; 2023: 11,933; 2024: 12,226.\n- Non-hydrocarbon GDP (billions of CFA francs): 2015: 4,272; 2016: 3,996; 2017: 3,846; 2018: 3,910; 2019: 3,949; 2020: 4,096; 2021: 4,298; 2022: 4,481; 2023: 4,705; 2024: 4,942.\n- Hydrocarbon volume (barrels): 2015: 133; 2016: 122; 2017: 115; 2018: 104; 2019: 92; 2020: 87; 2021: 89; 2022: 79; 2023: 74; 2024: 70.\n- Oil volume (crude + condensado): 2015: 88; 2016: 75; 2017: 64; 2018: 57; 2019: 53; 2020: 50; 2021: 43; 2022: 37; 2023: 34; 2024: 31.\n- Gas volume: 2015: 44; 2016: 47; 2017: 51; 2018: 46; 2019: 39; 2020: 41; 2021: 40.\n- Exchange rate (average; CFA francs/U.S. dollar): 2015: 591.4; 2016: 593.0; 2017: 582.1; 2018: 555.2; 2019: 585.8; 2020: 587.8; 2021: 581.4; 2022: 575.6; 2023: 570.4; 2024: 564.2.\n\nPress Release No. 19/472; IMF Communications Department; December 18, 2019.\n\n---\n\n\n References\n\n- Tao Zhang\n- https://www.imf.org/en/News/Articles/2019/12/13/na121319-equatorial-guinea-promoting-inclusive-growth-and-improving-governance-and-transparency\n- Guinea and the IMF\n- Republic of Equatorial Guinea and the IMF\n- The IMF and Good Governance -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- Staff Monitored Program\n- www.IMF.org/EquatorialGuinea\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/12/18/pr19472-equitorial-guinea-imf-executive-board-approves-us-million-three-year-eff-arrangement"
    }
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    "[Markdown version](/en/news/articles/2019/12/18/pr19472-equitorial-guinea-imf-executive-board-approves-us-million-three-year-eff-arrangement/index.md)",
    "[Structured JSON version](/en/news/articles/2019/12/18/pr19472-equitorial-guinea-imf-executive-board-approves-us-million-three-year-eff-arrangement/index.json)",
    "[Bundle manifest](/en/news/articles/2019/12/18/pr19472-equitorial-guinea-imf-executive-board-approves-us-million-three-year-eff-arrangement/bundle-manifest.json)",
    "Published: December 18, 2019",
    "Approved on December 18, 2019: a three-year arrangement under the IMF’s Extended Fund Facility (EFF) for Equatorial Guinea in an amount equivalent to SDR205.009 million (about US$282.8 million, or 130 percent of Equatorial Guinea’s quota in the Fund).",
    "Program aims:",
    "Immediate disbursement enabled: SDR29.287 million (about US$40.4 million).",
    "Remaining amount to be phased in over the program duration, subject to semi-annual reviews by the Executive Board.",
    "Board approval required three key prior actions focusing on governance and transparency:",
    "Recent shocks and challenges:",
    "Program priorities:",
    "Implementation emphasis:",
    "Priority actions identified:",
    "Additional measures:",
    "Fiscal objectives:",
    "Tax and revenue measures:",
    "Structural reforms:",
    "Banking sector weaknesses:",
    "Arrears clearance strategy:",
    "Banking-sector stabilization:",
    "Downside risks to program implementation:",
    "Mitigating factors:",
    "Real GDP (annual percent change): 2015: -9.1; 2016: -8.8; 2017: -4.7; 2018: -5.7; 2019: -5.9; 2020 (Est.): -1.9; 2021 (Program): 1.0; 2022: -1.2; 2023: -1.4; 2024: [no number in source].",
    "Hydrocarbon sectors (annual percent change): 2015: -9.4; 2016: -8.2; 2017: -5.6; 2018: -9.7; 2019: -10.4; 2020: -5.0; 2021: -0.6; 2022: -11.3; 2023: -5.5; 2024: -6.4.",
    "Non-hydrocarbon sectors (annual percent change): 2015: -3.4; 2016: 0.0; 2017: 1.7; 2018: 2.9; 2019: 2.2; 2020: 2.8; 2021: 2.7.",
    "GDP deflator (annual percent change): 2015: -20.2; 2016: -6.3; 2017: 12.7; 2018: 13.1; 2019: -3.2; 2020: 0.4; 2021: 2.4.",
    "Consumer prices (annual average): 2015: 1.4; 2016: 0.7; 2017: 1.3; 2018: 0.9; 2019: 1.8; 2020: 1.9.",
    "Broad money (annual percent change): 2015: -10.9; 2016: -16.4; 2017: -0.8; 2018: 3.7; 2019: 4.9; 2020: 4.3; 2021: 5.0.",
    "Exports, f.o.b. (annual percent change): 2015: -46.1; 2016: -26.9; 2017: 10.5; 2018: 11.6; 2019: -19.2; 2020: -7.9; 2021: -6.1; 2022: -11.9; 2023: -4.6.",
    "Hydrocarbon exports (annual percent change): 2015: -47.5; 2016: -25.9; 2017: 9.6; 2018: 12.4; 2019: -18.9; 2020: -8.6; 2021: -6.8; 2022: -13.0; 2023: -6.0.",
    "Non-hydrocarbon exports (annual percent change): 2015: 34.6; 2016: -49.4; 2017: 39.6; 2018: -27.9; 2019: 14.9; 2020: 13.5; 2021: 11.9; 2022: 12.1.",
    "Imports, f.o.b. (annual percent change): 2015: -23.1; 2016: -33.9; 2017: -13.2; 2018: 9.5; 2019: -17.8; 2020: -3.3; 2021: -12.5; 2022: -1.7.",
    "Gross investment (percent of GDP): 2015: 24.7; 2016: 16.7; 2017: 12.6; 2018: 12.0; 2019: 12.2; 2020: 11.7; 2021: 12.3.",
    "Gross national savings (percent of GDP): 2015: 8.3; 2016: 6.8; 2017: 6.6; 2018: 6.5; 2019: 7.3; 2020: 7.9; 2021: 8.1; 2022: 8.6; 2023: 8.5.",
    "Of which: hydrocarbon revenue (percent of GDP): 2015: 22.2; 2016: 12.8; 2017: 13.8; 2018: 15.5; 2019: 14.3; 2020: 11.4; 2021: 10.1; 2022: 9.3.",
    "Non-hydrocarbon revenue (percent of GDP): 2015: 4.1; 2016: 3.5; 2017: 4.7; 2018: 6.1; 2019: 7.1.",
    "Overall fiscal balance (Commitment basis, percent of GDP): 2015: -15.1; 2016: -2.6; 2017: 2.3.",
    "Overall fiscal balance (Cash basis)2: 2015: -2.9; 2016: -4.9; 2017: -21.3.",
    "Non-hydrocarbon primary balance3 (percent of GDP): 2015: -37.0; 2016: -23.5; 2017: -16.1; 2018: -14.4; 2019: -12.4; 2020: -10.6; 2021: -8.1; 2022: -6.2.",
    "Outstanding public debt4 (percent of GDP): 2015: 33.6; 2016: 43.4; 2017: 38.0; 2018: 43.0; 2019: 46.2; 2020: 46.6; 2021: 45.3; 2022: 44.4; 2023: 41.4; 2024: 38.5.",
    "Change in domestic arrears (percent of GDP): 2015: 3.0; 2016: -2.3; 2017: -2.0; 2018: -22.4.",
    "Current account balance (including official transfers; - = deficit): 2015: -5.8; 2016: -3.8; 2017: -4.1; 2018: -3.9.",
    "Total external public debt (percent of GDP): 2015: 9.0; 2016: 11.2; 2017: 13.0; 2018: 14.8; 2019: 16.2; 2020: 15.6.",
    "Debt service-to-exports ratio (percent): 2015: 5.8; 2016: 3.3; 2017: 6.3; 2018: 6.7; 2019: 9.8.",
    "External debt service/government revenue (percent): 2015: 5.9; 2016: 6.9; 2017: 11.8; 2018: 15.4; 2019: 14.2.",
    "Reserve assets at the BEAC (months of next years' imports): 2015: 0.1; 2016: 4.5; 2017: n.a.",
    "CEMAC Foreign Reserves (US$ billions, end-of-period): 2015: 10.3; 2016: 12.5; 2017: 13.9.",
    "CEMAC reserves (in months of extra zone imports): 2015: 4.4; 2016: 4.2; 2017: 4.8; 2018: 5.3; 2019: 5.6.",
    "Oil price (U.S. dollars a barrel)5: 2015: 47.0; 2016: 39.0; 2017: 51.4; 2018: 67.2; 2019: 59.7; 2020: 56.7; 2021: 54.3; 2022: 53.7; 2023: 53.9; 2024: 54.5.",
    "Nominal GDP (billions of CFA francs): 2015: 7,795; 2016: 6,661; 2017: 7,152; 2018: 7,624; 2019: 6,950; 2020: 6,842; 2021: 6,875; 2022: 6,726; 2023: 6,806; 2024: 6,898.",
    "Nominal GDP (millions of US dollars): 2015: 13,180; 2016: 11,233; 2017: 12,287; 2018: 13,732; 2019: 11,864; 2020: 11,639; 2021: 11,824; 2022: 11,685; 2023: 11,933; 2024: 12,226.",
    "Non-hydrocarbon GDP (billions of CFA francs): 2015: 4,272; 2016: 3,996; 2017: 3,846; 2018: 3,910; 2019: 3,949; 2020: 4,096; 2021: 4,298; 2022: 4,481; 2023: 4,705; 2024: 4,942.",
    "Hydrocarbon volume (barrels): 2015: 133; 2016: 122; 2017: 115; 2018: 104; 2019: 92; 2020: 87; 2021: 89; 2022: 79; 2023: 74; 2024: 70.",
    "Oil volume (crude + condensado): 2015: 88; 2016: 75; 2017: 64; 2018: 57; 2019: 53; 2020: 50; 2021: 43; 2022: 37; 2023: 34; 2024: 31.",
    "Gas volume: 2015: 44; 2016: 47; 2017: 51; 2018: 46; 2019: 39; 2020: 41; 2021: 40.",
    "Exchange rate (average; CFA francs/U.S. dollar): 2015: 591.4; 2016: 593.0; 2017: 582.1; 2018: 555.2; 2019: 585.8; 2020: 587.8; 2021: 581.4; 2022: 575.6; 2023: 570.4; 2024: 564.2.",
    "[Tao Zhang](https://www.imf.org/en/About/senior-officials/Bios/tao-zhang)",
    "[https://www.imf.org/en/News/Articles/2019/12/13/na121319-equatorial-guinea-promoting-inclusive-growth-and-improving-governance-and-transparency](https://www.imf.org/en/News/Articles/2019/12/13/na121319-equatorial-guinea-promoting-inclusive-growth-and-improving-governance-and-transparency)",
    "[Guinea and the IMF](http://www.imf.org/external/country/GIN/index.htm)",
    "[Republic of Equatorial Guinea and the IMF](http://www.imf.org/external/country/GNQ/index.htm)",
    "[The IMF and Good Governance -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/the-imf-and-good-governance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Staff Monitored Program](https://www.imf.org/en/News/Articles/2018/06/04/pr18218-Equatorial-Guinea-IMF-Managing-Director-Approves-a-Staff-Monitored-Program)",
    "[www.IMF.org/EquatorialGuinea](http://www.imf.org/EquatorialGuinea)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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