{ "title": "IMF Executive Board Approves a US$302 Million 48-month Arrangement Under the Extended Credit Facility for Burkina Faso", "publication": "IMF News, September 21, 2023", "sourceUrl": "https://www.imf.org/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf", "canonical": "https://www.imf.org/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf", "overlayPath": "/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf/index.md", "summary": "The Executive Board of the International Monetary Fund (IMF) approved today a 48-month arrangement under the Extended Credit Facility of US$302.5 million (SDR228.76 million), with an immediate disbursement of SDR24 million (about US$31.8 million)", "publishDate": "2023-09-21", "sections": [ { "heading": "Arrangement details and financing", "content": "- Approved: a 48-month arrangement under the Extended Credit Facility (ECF).\n- Financing amount: SDR228.76 million (about US$302 million).\n- Full amount reported elsewhere in the text as US$302.5 million (SDR228.76 million).\n- Immediate disbursement: reported as SDR24 million (about US$31.8 million) and elsewhere as SDR24.08 million (about US$31.8 million).\n- The arrangement follows a Food Shock Window disbursement in March, 2023." }, { "heading": "Macroeconomic context and shocks", "content": "- Country faces protracted balance of payments problems driven by:\n - large development needs;\n - the COVID-19 pandemic;\n - adverse weather conditions;\n - deteriorating domestic security;\n - the food insecurity crisis; and\n - spillovers from Russia’s war in Ukraine.\n- Shocks have disrupted economic activity, affected livelihoods, and exacerbated macroeconomic imbalances.\n- External and fiscal buffers eroded substantially in 2022:\n - current account deficit reached 6.2 percent of GDP;\n - overall fiscal balance widened to 10.6 percent of GDP;\n - economic growth in 2022 decelerated to 1.5 percent year-on-year, after 6.9 percent of GDP in 2021;\n - more than 40 percent of the population remains below the poverty line.\n- Additional contextual risks noted: volatile political environment, fragile and deteriorating security conditions, the impact of Russia’s war in Ukraine on energy prices and key agricultural imports, and post-pandemic international supply-chain disruptions." }, { "heading": "Program objectives and pillars", "content": "- Program aims:\n - address protracted balance of payments problems;\n - achieve macroeconomic stabilization;\n - mitigate the impact of current shocks on the most vulnerable;\n - reduce poverty.\n- Program built on three pillars:\n 1. creating fiscal space for priority spending;\n 2. strengthening resilience to shocks while reducing poverty;\n 3. reinforcing fiscal discipline, transparency, and governance.\n- Program intended to help close financing gaps amid:\n - tighter financial conditions on the regional bond market;\n - larger deficits and debt vulnerabilities;\n - weak donor support.\n- The arrangement will also help mitigate risks of sharp policy corrections if financing shortfalls materialize." }, { "heading": "Key economic indicators (as reported)", "content": "- SDR228.76 million = about US$302 million (also referenced as US$302.5 million in the text).\n- Immediate disbursement: SDR24 million (about US$31.8 million) and SDR24.08 million (about US$31.8 million).\n- Current account deficit: 6.2 percent of GDP (2022).\n- Overall fiscal balance: widened to 10.6 percent of GDP (2022).\n- Economic growth: 1.5 percent year-on-year (2022); 6.9 percent of GDP (2021).\n- Poverty incidence: more than 40 percent of the population below the poverty line." }, { "heading": "Policy commitments and reforms", "content": "- Fiscal policy:\n - authorities committed to gradual fiscal consolidation to return to the regional convergence criteria for the fiscal deficit;\n - plans to step up efforts to increase domestic revenue mobilization and improve the quality and transparency of public spending.\n- Revenue-side reforms:\n - broaden the tax base, including by closing tax loopholes in the mining sector;\n - strengthen tax and customs administration.\n- Expenditure-side reforms:\n - bring the public sector wage bill as a share of tax revenue to a sustainable level over the medium term;\n - reform the energy sector to reduce untargeted energy subsidies.\n- Governance and transparency:\n - strengthen fiscal governance and transparency to restore donors’ trust and catalyze concessional financing." }, { "heading": "Social protection, humanitarian, and structural priorities", "content": "- Given large humanitarian and socio-economic development needs, the program envisages:\n - scaling up social spending;\n - strengthening social protection, including consolidating existing social safety nets;\n - accelerating the establishment of the Single National Registry of Beneficiaries.\n- Long-term development priorities:\n - sustain structural reforms to foster economic growth and diversification;\n - reduce poverty through improvements to the business environment, reinforced governance and anti-corruption efforts, and addressing the security crisis." }, { "heading": "Statement highlights from the Acting Chair (Mr. Kenji Okamura, Deputy Managing Director)", "content": "- The arrangement would:\n - help address balance of payments needs and create fiscal space for priority spending;\n - reduce public debt vulnerabilities;\n - contribute to strengthening resilience to security and climate shocks while reducing poverty and inequality;\n - reinforce fiscal discipline, transparency, and governance.\n- A resolute commitment to the policy and reform agenda under the arrangement, and to the timeline of the political transition, is critical to:\n - safeguard fiscal and debt sustainability;\n - anchor the country’s macroeconomic outlook; and\n - catalyze additional concessional financing.\n\nPress Release No. 23/320 — IMF Executive Board Approves a US$302 Million 48-month Arrangement Under the Extended Credit Facility for Burkina Faso (September 21, 2023)\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Burkina Faso and the IMF\n- Press Releases\n- PRESS CENTER\n- Extended Credit Facility\n- Food Shock Window\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf" } ], "bullets": [ "[Markdown version](/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf/index.md)", "[Structured JSON version](/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf/index.json)", "[Bundle manifest](/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf/bundle-manifest.json)", "Published: September 21, 2023", "Approved: a 48-month arrangement under the Extended Credit Facility (ECF).", "Financing amount: SDR228.76 million (about US$302 million).", "Full amount reported elsewhere in the text as US$302.5 million (SDR228.76 million).", "Immediate disbursement: reported as SDR24 million (about US$31.8 million) and elsewhere as SDR24.08 million (about US$31.8 million).", "The arrangement follows a Food Shock Window disbursement in March, 2023.", "Country faces protracted balance of payments problems driven by:", "Shocks have disrupted economic activity, affected livelihoods, and exacerbated macroeconomic imbalances.", "External and fiscal buffers eroded substantially in 2022:", "Additional contextual risks noted: volatile political environment, fragile and deteriorating security conditions, the impact of Russia’s war in Ukraine on energy prices and key agricultural imports, and post-pandemic international supply-chain disruptions.", "Program aims:", "Program built on three pillars:", "Program intended to help close financing gaps amid:", "The arrangement will also help mitigate risks of sharp policy corrections if financing shortfalls materialize.", "SDR228.76 million = about US$302 million (also referenced as US$302.5 million in the text).", "Immediate disbursement: SDR24 million (about US$31.8 million) and SDR24.08 million (about US$31.8 million).", "Current account deficit: 6.2 percent of GDP (2022).", "Overall fiscal balance: widened to 10.6 percent of GDP (2022).", "Economic growth: 1.5 percent year-on-year (2022); 6.9 percent of GDP (2021).", "Poverty incidence: more than 40 percent of the population below the poverty line.", "Fiscal policy:", "Revenue-side reforms:", "Expenditure-side reforms:", "Governance and transparency:", "Given large humanitarian and socio-economic development needs, the program envisages:", "Long-term development priorities:", "The arrangement would:", "A resolute commitment to the policy and reform agenda under the arrangement, and to the timeline of the political transition, is critical to:", "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)", "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)", "[Burkina Faso and the IMF](http://www.imf.org/external/country/BFA/index.htm)", "[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/2023/Extended-Credit-Facility-ECF)", "[Food Shock Window](https://www.imf.org/en/News/Articles/2023/03/27/pr2396-burkina-faso-imf-exec-board-approves-us-80m-emergency-financing-suppor)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf/index.md", "json": "/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf/index.json", "bundleManifest": "/en/news/articles/2023/09/21/pr23320-burkina-faso-imf-exec-board-approves-us-302m-48-month-arr-ecf/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T02:21:21.581Z" }