Press Release No. 04/231

Mr. Bio-Tchané, Director of the African Department of the International Monetary Fund (IMF), met during October 29-30, 2004 with the Prime Minister and other senior officals of the Cameroon government to exchange views on recent economic developments, and to discuss the ongoing cooperation between the IMF and Cameroon.

The IMF delegation welcomed the continued strong growth of Cameroon's economy amid low inflation. It stressed the importance of ensuring that these developments are not only sustained but also used as a foundation for further growth and employment creation. In that regard, the IMF noted that it would be important to continue to strengthen budgetary and financial management performance under the government's policy program.

It was agreed that discussions should resume soon on an economic program for Cameroon that would seek to enhance economic growth and contribute to poverty reduction, as well as gain renewed financial support from the Fund. A new Povery Reduction and Growth Facility arrangement can be put in place after a sustained period of implementation of reform measures. The successful implementation of a program supported by a new PRGF arrangement would allow Cameroon to reach its completion point under the Heavily Indebted Poor Countries Initiative and obtain an important reduction of its external debt. Mr. Bio-Tchané informed the authorities that a new IMF Resident Representative will be stationed in Yaoundé as soon as administrative processes have been completed.