## IMF Executive Board Completes Fifth Reviews under Extended Credit Facility and Extended Fund Facility for Cameroon and Concludes 2023 Article IV Consultation

_IMF News, December 20, 2023_

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## Bibliographic details
- Published: December 20, 2023

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### Program actions and financing
- The Executive Board completed the Fifth Reviews under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements.
- Approved a 12-month extension of the ECF and EFF arrangements (from July 28, 2024, to July 28, 2025).
- Approved an augmentation of access by SDR 110.4 million (about US$ 147.6 million) over the extension.
- Completion of the Fifth Reviews allows for immediate disbursement of SDR 55.2 million (about US$ 73.8 million).
- Total disbursements under the arrangements to date: SDR 427.8 million (around US$ 571.9 million).
- Original program size: US$ 689.5 million, three-year blended arrangements approved on July 29, 2021.

### Macroeconomic developments and projections
- Real GDP growth:
  - 2022: 3.6 percent (estimated)
  - 2023: 4 percent (expected)
  - 2024–2028: projected at 4.2, 4.3, 4.5, 4.6 (and subsequent annual figures provided in Table 1)
- Inflation:
  - Consumer prices (end of period): 7.3 percent at end-2022; projected 6.2 percent by end-2023.
  - Consumer prices (average): 6.2 percent (2022); 7.2 percent (2023); subsequent projections in Table 1.
- Fiscal outcomes:
  - Overall fiscal deficit (payment order basis) excluding grants: -1.5 (2022), -1.1 (2023), -1.0 (2024), -0.7 (2025), -0.6 (2026), -0.9 (2027).
  - Overall fiscal balance (cash basis): -1.6 (2022), -2.4 (2023), -2.3 (2024), -1.4 (2025), -1.2 (2026), -2.0 (2027), -1.9 (2028).
  - Non-oil primary balance (payment order basis, percent of non-oil GDP): -3.9 (2022), -2.5 (2023), -1.7 (2024).
  - Total revenue (including grants) as percent of GDP: 15.9 (2022), 16.0 (2023), 15.5 (2024), 15.7 (2025), 15.8 (2026).
  - Non-oil revenue (percent of non-oil GDP): 12.6 (2022), 13.4 (2023), 14.3 (2024).
- Public debt:
  - Stock of public debt (percent of GDP): 45.3 (2022), 43.2 (2023), 41.8 (2024), 41.1 (2025), 39.0 (2026), 36.1 (2027), 34.1 (2028), 32.6 (subsequent), 31.4 (later projection as in Table 1).
  - External debt (percent of GDP): 30.8 (2022), 30.7 (2023), 29.2 (2024), 29.7 (2025), 28.5 (2026), 27.0 (2027), 26.0 (2028), 25.5, 25.4 (as detailed in Table 1).
- External sector:
  - Current account balance excluding official grants: -3.7 (2022), -3.3 (2023), -3.1 (2024), -2.9 (2025), -2.7 (2026), -2.8 (2027).
  - Trade components and other series are presented in Table 1.

### Program performance and conditionality
- The ECF-EFF arrangements continue to anchor the authorities’ economic and fiscal program; implementation has been broadly on track.
- A waiver was approved for nonobservance of the performance criterion on the non-accumulation of new external payments arrears on grounds the breach was temporary and minor (minor and temporary delays on two debt service payments).
- Completion of the sixth review will be conditional on the implementation of critical policy assurances at the Union level, as established in the December 2023 Union‑wide background paper.

### Policy priorities and staff recommendations
- Fiscal policy and public finance:
  - Maintain a fiscal consolidation path consistent with program objectives.
  - Create additional room for productive investment and social spending through greater non-oil revenue mobilization, enhanced investment efficiency, improved public financial management, and gradually phasing out fuel subsidies while mitigating impacts on the vulnerable.
  - Improve cash management and limit spending through exceptional procedures.
  - Strictly limit recourse to direct interventions and exceptional spending procedures; limit non‑concessional borrowing.
- Debt management:
  - Address high risk of debt distress and debt vulnerabilities.
  - Implement timely restructuring of the public oil refining company (SONARA).
- Financial sector:
  - Reduce banks' exposure to sovereign risk and ensure banks account adequately for sovereign risk in coordination with the Banking Commission of Central Africa (COBAC).
  - Strengthen financial sector stability and inclusion.
- Structural reforms:
  - Accelerate reforms to unlock growth potential, including improving the business climate and removing regulations that hinder competition to enhance market flexibility and formalization.
  - Invest in human capital and infrastructure, and strengthen institutions.
- Governance and anti-corruption:
  - Strengthen governance, transparency, and the anti‑corruption framework, including the AML/CFT framework.
  - Publication of the governance diagnostic report noted as an important step.
- Climate policy:
  - Mainstream climate agenda in national institutional, regulatory, and budget frameworks.
  - Advance climate change mitigation and adaptation measures in line with Cameroon’s commitments under the Paris Agreement.

### Executive Board assessment and concluding remarks
- Directors agreed with the thrust of the staff appraisal, commended authorities for maintaining stability amid external headwinds and internal fragilities, but noted mixed program performance and called for strengthened implementation.
- Emphasized the need for deep public financial reforms, gradual phasing-out of fuel subsidies with mitigation measures, strengthened domestic non‑oil revenue mobilization, and enhanced public expenditure efficiency and prioritization.
- Urged coordination with COBAC on sovereign exposure and called for timely implementation of SONARA restructuring.
- Welcomed authorities’ plans for structural transformation, export diversification, and integration of climate considerations.
- Noted support from CEMAC regional institutions is critical; sixth review conditional on Union-level policy assurances.
- Next Article IV Consultation expected to be held in accordance with the Executive Board decision on consultation cycles for members with Fund arrangements.

*Source: Press Release No. 23/469, IMF Communications Department (December 20, 2023).*

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## References

- [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)
- [Cameroon and the IMF](http://www.imf.org/external/country/CMR/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)
- [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)
- [press release](https://www.imf.org/en/News/Articles/2021/07/29/pr21237-cameroon-imf-executive-board-approves-us-million-arrangements-under-ecf-eff)
- [http://www.imf.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2023/12/20/pr23469-cameroon-imf-exec-board-completes-5th-rvw-ecf-eff-concludes-2023-article-iv-consultation_