{
  "title": "IMF Executive Board Approves US$ 689.5 Million Arrangements Under the Extended Credit Facility and Extended Fund Facility for Cameroon",
  "publication": "IMF News, July 29, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/07/29/pr21237-cameroon-imf-executive-board-approves-us-million-arrangements-under-ecf-eff",
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  "summary": "Executive Board approved three-year arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for Cameroon for SDR 483 million (about US$ 689.5 million, or 175 percent of Cameroon’s quota).",
  "publishDate": "2021-07-29",
  "sections": [
    {
      "heading": "Program approval and financing",
      "content": "- Executive Board approved three-year arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for Cameroon for SDR 483 million (about US$ 689.5 million, or 175 percent of Cameroon’s quota).\n- Approval enables immediate disbursement of about US$ 177.2 million, usable for budget support.\n- This follows Fund emergency support under the Rapid Credit Facility (RCF) totaling SDR 276 million, about US$ 382 million or 100 percent of Cameroon’s quota."
    },
    {
      "heading": "Objectives and priorities of the ECF/EFF-supported program",
      "content": "- Aim: support authorities’ efforts to achieve a rapid post-COVID-19 recovery, restore the country’s fiscal and external sustainability, and unlock inclusive and private sector-driven growth.\n- Urgent priorities: address financial and fiscal risks associated with state-owned enterprises (SOEs), strengthen public debt management, and limit non-concessional borrowing.\n- Governance: steadfast commitment to strengthen transparency, good governance, and reduce corruption risks is crucial."
    },
    {
      "heading": "Program pillars and reform agenda",
      "content": "- The five pillars of the program will seek to:\n  - (i) mitigate the health, economic, and social consequences of the pandemic while ensuring domestic and external sustainability;\n  - (ii) reinforce good governance and strengthen transparency and the anti-corruption framework;\n  - (iii) accelerate structural fiscal reforms to modernize tax and customs administrations, mobilize revenue, improve public financial management, increase public investment efficiency, and reduce fiscal risks from state-owned enterprises;\n  - (iv) strengthen debt management and reduce debt vulnerabilities;\n  - (v) implement structural reforms to accelerate economic diversification, boost financial sector resilience and inclusion, and promote gender equality and a greener economy.\n- Authorities adopted a revised budget with a larger deficit to accommodate the pandemic impact and committed to gradually return to fiscal consolidation once the pandemic abates.\n- Success also depends on supportive policies and reforms by CEMAC regional institutions."
    },
    {
      "heading": "Economic context, recent performance, and risks",
      "content": "- COVID-19 developments: an upsurge in COVID-19 cases since January 2021 has raised concerns about growth prospects and the external and fiscal positions.\n- Other risks: security risks in parts of the country persist; pandemic could reverse improvements in poverty reduction and jeopardize reform implementation.\n- 2020 performance: economic activity decelerated markedly in 2020 but less than anticipated due to strong performance in agricultural and construction sectors.\n- 2020 outcomes:\n  - Current account deficit narrowed to 3.7 percent of GDP, owing to lower imports and higher than expected non-oil exports.\n  - Inflation remained below 3.0 percent.\n  - Fiscal deficit contained to 3.6 percent of GDP due to proactive COVID-19 management by authorities.\n- Near-term outlook: highly uncertain and dependent on program policy implementation. A gradual recovery could increase GDP growth to 3.6 percent in 2021 and 4.6 percent in 2022.\n- Medium-term drivers: implementation of National Development Strategy for 2020-30 (SND30), large infrastructure projects, and recovery in trading partner economies."
    },
    {
      "heading": "Fiscal, debt, and external projections (selected highlights preserved exactly)",
      "content": "- GDP growth (annual percentage change):\n  - 2019: 3,7\n  - 2020: -1,5\n  - 2021: 3,6\n  - 2022: 4,6\n  - 2023: 4,9\n  - 2024: 5,3\n  - 2025: 5,4\n  - 2026: 5,6\n- Nominal GDP (at market prices, CFAF billions):\n  - 2019: 22.855\n  - 2020: 22.955\n  - 2021: 24.265\n  - 2022: 25.865\n  - 2023: 27.687\n  - 2024: 29.670\n  - 2025: 31.922\n  - 2026: 34.359\n- Central government operations (percent of GDP where indicated):\n  - Total revenue (including grants): 2019: 15,7; 2020: 13,7; 2021: 14,6; 2022: 15,5; 2023: 15,8; 2024: 16,4; 2025: 16,9; 2026: 17,5\n  - Non-oil revenue (percent of non-oil GDP): 2019: 13,1; 2020: 12,0; 2021: 12,6; 2022: 13,4; 2023: 14,0; 2024: 14,7; 2025: 15,4; 2026: 16,2\n  - Overall fiscal balance (payment order basis) excluding grants:\n    - 2019: -3,9\n    - 2020: -3,4\n    - 2021: -3,7\n    - 2022: -2,9\n    - 2023: -2,2\n    - 2024: -2,0\n    - 2025: -1,3\n    - 2026: -1,4\n  - Overall fiscal balance (cash basis):\n    - 2019: -3,8\n    - 2020: -4,1\n    - 2021: -2,7\n    - 2022: -2,3\n    - 2023: -3,6\n    - 2024: -3,0\n    - 2025: -1,9\n    - 2026: -1,0\n  - Non-oil primary balance (payment basis, percent of non-oil GDP): 2019: -5,0; 2020: -4,4; 2021: -4,6; 2022: -3,1\n- External sector (percent of GDP where indicated):\n  - Gross national savings: 2019: 26,1; 2020: 22,9; 2021: 24,9; 2022: 27,1; 2023: 28,6; 2024: 30,1; 2025: 31,7; 2026: 33,4\n  - Gross domestic investment: 2019: 30,4; 2020: 26,6; 2021: 28,9; 2022: 30,7; 2023: 32,0; 2024: 33,2; 2025: 34,6; 2026: 35,9\n  - Current account balance excluding official grants: 2019: -4,7; 2020: -4,0; 2021: -3,5; 2022: -2,8\n- Public debt:\n  - Stock of public debt (percent of GDP): 2019: 42,3; 2020: 45,8; 2021: 46,2; 2022: 45,6; 2023: 44,4; 2024: 43,1; 2025: 41,0; 2026: 39,2\n  - Of which: external debt (percent of GDP): 2019: 29,9; 2020: 31,1; 2021: 32,3; 2022: 31,8; 2023: 31,3; 2024: 30,6; 2025: 29,3"
    },
    {
      "heading": "Key policy recommendations and conditionalities highlighted",
      "content": "- Implement reforms to further strengthen transparency, good governance, and the anti-corruption framework to help catalyze additional donor financing.\n- Accelerate structural fiscal reforms: modernize tax and customs administrations, mobilize revenue, improve public financial management, increase public investment efficiency, and reduce fiscal risks from SOEs.\n- Strengthen debt management and reduce debt vulnerabilities; limit non-concessional borrowing.\n- Implement structural reforms to accelerate economic diversification, boost financial sector resilience and inclusion, and promote gender equality and a greener economy.\n- Effective and resolute implementation of authorities’ reforms and supportive regional policies are critical to program success.\n\nSource: IMF Press Release No. 21/237 (July 29, 2021).\n\n---\n\n\n References\n\n- Mitsuhiro Furusawa\n- Cameroon and the IMF\n- Central African Republic and the IMF\n- Chad and the IMF\n- Gabon and the IMF\n- The IMF and Good Governance -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- Extended Credit Facility\n- Extended Fund Facility\n- IMF Press Release No. 20/205\n- IMF Press Release No. 20/318\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/07/29/pr21237-cameroon-imf-executive-board-approves-us-million-arrangements-under-ecf-eff"
    }
  ],
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    "Published: July 29, 2021",
    "Executive Board approved three-year arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for Cameroon for SDR 483 million (about US$ 689.5 million, or 175 percent of Cameroon’s quota).",
    "Approval enables immediate disbursement of about US$ 177.2 million, usable for budget support.",
    "This follows Fund emergency support under the Rapid Credit Facility (RCF) totaling SDR 276 million, about US$ 382 million or 100 percent of Cameroon’s quota.",
    "Aim: support authorities’ efforts to achieve a rapid post-COVID-19 recovery, restore the country’s fiscal and external sustainability, and unlock inclusive and private sector-driven growth.",
    "Urgent priorities: address financial and fiscal risks associated with state-owned enterprises (SOEs), strengthen public debt management, and limit non-concessional borrowing.",
    "Governance: steadfast commitment to strengthen transparency, good governance, and reduce corruption risks is crucial.",
    "The five pillars of the program will seek to:",
    "Authorities adopted a revised budget with a larger deficit to accommodate the pandemic impact and committed to gradually return to fiscal consolidation once the pandemic abates.",
    "Success also depends on supportive policies and reforms by CEMAC regional institutions.",
    "COVID-19 developments: an upsurge in COVID-19 cases since January 2021 has raised concerns about growth prospects and the external and fiscal positions.",
    "Other risks: security risks in parts of the country persist; pandemic could reverse improvements in poverty reduction and jeopardize reform implementation.",
    "2020 performance: economic activity decelerated markedly in 2020 but less than anticipated due to strong performance in agricultural and construction sectors.",
    "2020 outcomes:",
    "Near-term outlook: highly uncertain and dependent on program policy implementation. A gradual recovery could increase GDP growth to 3.6 percent in 2021 and 4.6 percent in 2022.",
    "Medium-term drivers: implementation of National Development Strategy for 2020-30 (SND30), large infrastructure projects, and recovery in trading partner economies.",
    "GDP growth (annual percentage change):",
    "Nominal GDP (at market prices, CFAF billions):",
    "Central government operations (percent of GDP where indicated):",
    "External sector (percent of GDP where indicated):",
    "Public debt:",
    "Implement reforms to further strengthen transparency, good governance, and the anti-corruption framework to help catalyze additional donor financing.",
    "Accelerate structural fiscal reforms: modernize tax and customs administrations, mobilize revenue, improve public financial management, increase public investment efficiency, and reduce fiscal risks from SOEs.",
    "Strengthen debt management and reduce debt vulnerabilities; limit non-concessional borrowing.",
    "Implement structural reforms to accelerate economic diversification, boost financial sector resilience and inclusion, and promote gender equality and a greener economy.",
    "Effective and resolute implementation of authorities’ reforms and supportive regional policies are critical to program success.",
    "[Mitsuhiro Furusawa](http://www.imf.org/external/np/omd/bios/mf.htm)",
    "[Cameroon and the IMF](http://www.imf.org/external/country/CMR/index.htm)",
    "[Central African Republic and the IMF](http://www.imf.org/external/country/CAF/index.htm)",
    "[Chad and the IMF](http://www.imf.org/external/country/TCD/index.htm)",
    "[Gabon and the IMF](http://www.imf.org/external/country/GAB/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/)",
    "[Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility)",
    "[Extended Fund Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/20/56/Extended-Fund-Facility)",
    "[IMF Press Release No. 20/205](https://www.imf.org/en/News/Articles/2020/05/04/pr20205-cameroon-imf-exec-board-approves-us-226m-disbursement-address-impact-covid19-pandemic)",
    "[IMF Press Release No. 20/318](https://www.imf.org/en/News/Articles/2020/10/21/pr20318-cameroon-imf-executive-board-approves-new-disbursement-to-address-the-impact-of-the-covid-19)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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