IMF approves $115.1 million three-year loan to Central African Republic under ECF

1,005FollowersFollow

The executive board of the International Monetary Fund (IMF) on Friday approved $115.1 million three-year loan for the Central African Republic under an extended credit facility. The board also approved an immediate disbursement of $16.4 million.

“Disbursement of the remaining amount will be phased in over the duration of the program, subject to semi-annual reviews of the IMF-supported program by its Executive Board,” IMF said in a statement received by TODAY NEWS AFRICA in Washington D.C.

An extended credit facility (ECF) allows the borrowing country to take out money over an extended period of time rather than reapplying for a loan each time it needs money.

Mr. Mitsuhiro Furusawa, a Deputy Managing Director and Acting Chair at the IMF said despite significant progress under the ECF arrangement that expired last July, “the Central African Republic remains very fragile, with a volatile security environment, limited administrative capacity, poor governance, and lack of social cohesion”.

He added: “The new three-year program supported by the IMF Extended Credit Facility (ECF) will support the implementation of the February 2019 peace agreement and of C.A.R.’s medium-term development strategy. It aims at maintaining macroeconomic stability, strengthening administrative capacity, governance and the business climate, promoting robust and sustainable growth, and reducing poverty.

“Fiscal policy will focus on enhanced revenue mobilization, spending prioritization, and strengthened public financial management. This will ensure that C.A.R.’s considerable security, social, and infrastructure spending needs are sustainably met. Revenue mobilization measures will include the daily reconciliation of revenue data, the digitalization of tax returns and payments, and enhanced coordination between revenue administrations. The further strengthening of public financial management will involve the elimination of the remaining public agencies with no economic justification, the finalization of the audit of domestic arrears, and the strengthening of SOEs’ oversight and management.

“Structural reforms will aim at improving the government’s capacity to design and implement policies and reforms, enhancing governance, including through strengthening anticorruption institutions, and removing bottlenecks and regulatory impediments to private investment.

“Continued financial and technical support from development partners will be critical to the program’s success. Given its high risk of debt distress and limited revenue base, C.A.R. will have to continue relying heavily on grant financing to finance its most pressing spending needs. The authorities will work closely with their technical partners to ensure that capacity development focuses on priorities closely aligned with the program objectives and is efficiently delivered.

“The C.A.R.’s program is supported by the implementation of policies and reforms by the CEMAC regional institutions in the areas of foreign exchange regulations and monetary policy framework, and to support an increase in regional net foreign assets, which are critical to program’s success.”

Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: simonateba@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

U.S. calls for independent probe into massacres in Tigray region in Ethiopia

The United States government on Thursday called for an independent investigation following massacres in the Tigray region in Ethiopia.The United States said the investigation...

U.S. government has no evidence WHO director general Tedros Adhnom Ghebreyesus is backing Tigray rebels

The United States government on Thursday indicated that it did not have any evidence the director general of the World Health Organization (WHO) Tedros...

As COVID-19 kills a quarter million Americans, Trump plays bad golf, tweets many lies, whines over election loss and obstructs Joe Biden

President Donald Trump spends time playing bad golf, tweeting many election fraud lies and obstructing President-elect Joe Biden, at a time when a quarter...

Ethiopia baselessly accuses WHO director general Tedros Adhnom Ghebreyesus of backing Tigray rebels

Ethiopia's military on Thursday baselessly accused the director general of the World Health Organization (WHO) Tedros Adhnom Ghebreyesus of supporting Tigray's rebels.The military claimed...

Trump campaign files appeal after Judge called legal claim in Pennsylvania “Frankenstein’s Monster” before dismissing it

President Donald Trump’s legal team on Sunday filed an appeal to a federal judge’s ruling that dismissed his campaign's effort to block the certification...

Biden to National Governors Association’s executive committee: “I will be your partner in the White House”

U.S. President-elect Joe Biden told the National Governors Association's executive committee on Thursday he will be their partner in the White House against the...

Biden announces foreign policy and national security team, including Blinken as Secretary of State, Mayorkas as Secretary of Homeland Security and Kerry as envoy on climate

U.S. President-elect Joe Biden on Monday announced key members of his foreign policy and national security team, including Antony Blinken as Secretary of State;...

Linda Thomas-Greenfield: “America is back. Multilateralism is back. Diplomacy is back.”

Linda Thomas-Greenfield, who has been nominated by President-elect, Joseph R. Biden Jr., to serve as the United States Ambassador to the United Nations, on...

Biden says he opposes guarded border between Ireland and Northern Ireland

U.S. President-elect Joseph R. Biden Jr. on Tuesday said he opposed a guarded border between Ireland and Northern Ireland.Mr. Biden spoke briefly with reporters...

Biden says he’s ready to meet with Trump if asked, has not yet received intel briefings

U.S. President-elect Joseph R. Biden Jr. on Tuesday said he was ready to meet with outgoing President Donald J. Trump if asked.“Of course I...

Black media highlight selection of Thomas-Greenfield and Shuwanza Goff in Biden-Harris administration

President-elect Joe Biden on Monday announced several historic nominations and appointments to key cabinet and White House posts, including two black women and several...

Incoming U.S. Secretary of State Antony Blinken indicates Trump’s “America First” policy is over

President Donald Trump's "America First" policy is over, incoming U.S. Secretary of State Antony Blinken indicated on Tuesday.In his acceptance speech in Wilmington, Delaware,...

Biden: America is back, ready to lead the world

U.S. President-elect Joseph R. Biden Jr. on Tuesday introduced key members of his foreign policy and national security team in Wilmington, Delaware, saying "America...

In their own words: Read full remarks by national security and foreign policy nominees and appointees

Remarks as Prepared for Delivery by Nominee for Secretary of State, Antony Blinken in Wilmington, DelawarePresident-elect Biden, Vice President-elect Harris: thank you for your...

Linda Thomas-Greenfield: “America is back. Multilateralism is back. Diplomacy is back.”

Linda Thomas-Greenfield, who has been nominated by President-elect, Joseph R. Biden Jr., to serve as the United States Ambassador to the United Nations, on Tuesday, delivered, perhaps, what was one of the strongest messages that echoed in many capitals around the world, a striking difference between the outgoing administration of Donald J. Trump, and the incoming Biden government."America is back. Multilateralism is back. Diplomacy is...
error: Alert: Content is protected !!
WhatsApp
Share
Tweet
Pin
Share