Updated: February 28, 2021
The International Monetary Fund has approved the immediate disbursement of an additional $133.4 million to Ivory Coast under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements.
The approval, on Friday, brought total disbursements under the arrangements to about $896.7 million.
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The Executive Board of the IMF made the decision on Friday at the completion of the sixth review under ECF and EFF.
It also approved the request to extend the IMF support to the end of 2020 and increase Côte d’Ivoire access to SDR 843.972 million (about US$1,1163.6 million or 129.8 percent of Cote d’Ivoire’s quota).
According to the IMF, Cote D’Ivoire’s economic outlook remains strong, with growth projected at about 7½ percent in 2019-20, while the budget deficit is projected to converge to the WAEMU regional norm of 3 percent of GDP in 2019 and the authorities have committed to the same target for 2020.
The IMF said its supported program aims to foster inclusive growth and poverty reduction, support fiscal discipline, enhance domestic revenue mobilization, ensure debt sustainability, and achieve a sustainable balance of payments position.
“Côte d’Ivoire has been pursuing a development-oriented policy agenda, and the IMF-supported program in place since 2016 has supported that focus, paving the way for the private sector to become the main driver of growth,” said Mr. Mitsuhiro Furusawa, IMF Acting Board Chair and Deputy Managing Director.
“The performance under the program has been strong. The medium-term growth prospects remain robust, predicated on continuing prudent macroeconomic policy, furthering financial sector reforms and sustaining structural reforms to bolster private sector-led inclusive growth,” Furusawa added.
He said Ivorian authorities recommitted to the regional budget deficit target of 3 percent of GDP in 2019 and 2020.
“This objective is crucial to macroeconomic stability and should be supported by a combination of domestic revenue mobilization measures, such as broadening the tax base, curtailing exemptions and swiftly digitalizing the revenue administration, and through current expenditure restraint”.
“This will help Côte d’Ivoire finance its ambitious development projects. To preserve debt sustainability, the budget deficit target needs to be complemented by a balanced mix of external and domestic sources of financing and continued prudent debt management will also be imperative. The one-year extension of the current ECF and EFF arrangements through 2020 will provide an important anchor for prudent policies.
“Accelerating public bank restructuring will also be essential to further strengthen the resilience of the banking sector. Further strengthening the AML/CFT frameworks and their implementation is also important”.