Burundi: 2006 Article IV Consultation, Third and Fourth Reviews Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Request for Waiver of Performance Criteria, Modification of a Performance Criterion, Extension of the Arrangement, and Additional Interim Assistance Under the Enhanced Initiative for Heavily Indebted Poor Countries—Staff Report; Staff Statement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Burundi

IMF Staff Country Reports, August 21, 2006

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Canonical URL: Burundi: 2006 Article IV Consultation, Third and Fourth Reviews Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Request for Waiver of Performance Criteria, Modification of a Performance Criterion, Extension of the Arrangement, and Additional Interim Assistance Under the Enhanced Initiative for Heavily Indebted Poor Countries—Staff Report; Staff Statement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Burundi

Burundi is emerging from more than a decade of civil conflict that started with the 1993 coup d’état against its first elected government.
Macroeconomic developments in 2005 were broadly in line with the Poverty Reduction and Growth Facility (PRGF) program.
Growth in 2005 was lower at about 1 percent, largely because of a poor coffee harvest and worsening drought in the north.
The 2006 budget, adopted in late 2005, envisaged:
- revenues of 18.9 percent of GDP
- spending of 40.8 percent of GDP

Output performance:
- Growth of about 1 percent in 2005.
- Adverse agricultural shocks (poor coffee harvest) and climatic conditions (worsening drought in the north) were cited as primary drivers of weak growth.
Program alignment:
- 2005 macroeconomic developments were reported as broadly consistent with the PRGF program framework.

Key budgetary projections adopted in late 2005:
- Revenues: 18.9 percent of GDP
- Spending: 40.8 percent of GDP

Subject: Arrears, Asset and liability management, Debt relief, Debt service, External debt, Imports, International reserves, International trade
Keywords: Africa, Arrears, article IV consultation discussion, assistance, coffee marketing, CR, Debt relief, Debt service, East Africa, Europe, expenditure-tracking mechanism, government, Imports, ISCR, managed floating exchange rate regime, parliament, PRGF arrangement, regime, staff appraisal

IMF Staff Country Report No. 2006/311; August 21, 2006.