The Executive Board of the International Monetary Fund (IMF) on Friday approved the disbursement of $51.28 million loan money for Burkina Faso.
The release, under the Extended Credit Facility (ECF), brings the total disbursements under the arrangement to $152.58 million.
It announced after the IMF completed the fourth and fifth reviews of Burkina Faso’s economic program.
Burkina Faso’s three-year ECF arrangement was approved by the IMF Executive Board on March 14, 2018.
It aims at maintaining macroeconomic stability, reducing poverty and creating fiscal space for priority spending.
“The COVID19 pandemic and the security crisis continue to negatively impact Burkina Faso’s economy,” said Mr. Mitsuhiro Furusawa, IMF Deputy Managing Director and Acting Chair.
Furusawa said “a widening of the fiscal deficit in 2020 and 2021 is warranted to accommodate the COVID19 spending, additional security needs, and post-COVID19 recovery.”
He added that such spending “should be cost-effective and appropriately targeted, while safeguarding macroeconomic stability and debt sustainability.”
“In addition, efforts should focus on boosting domestic revenue mobilization, which was affected by the large contraction in economic activity,” he added.
The Executive Board of the IMF also approved the Burkina Faso’s authorities’ requests for a waiver for the nonobservance of the program performance criterion on the ceiling on net domestic financing of the government and rephasing of access for the fifth review to make the sixth disbursement available on November 13, 2020.