Saturday, January 25, 2020

Cameroon awaits IMF loan of 44 billion CFA

The Executive Board of the International Monetary Fund (IMF) completed, on January 22, the fifth review of the agreement under the Extended Credit Facility (ECF) for Cameroon.

According to the final work release, the completion of the review will allow the disbursement of approximately $ 76.1 million (nearly CFAF 44 billion). This brings the total disbursements under the agreement to around $ 590 million (nearly CFAF 344 billion). 

“Cameroon's performance under the program supported by the FEC is mixed. All the performance criteria at the end of June 2019 were met, but four of the five indicative targets for the end of June were not reached. Are structural reforms moving forward, but with delays? ”Said Deputy Managing Director and Interim IMF Chairman Mitsuhiro Furusawa after the Executive Board discussion. 

In this regard, the Board of Directors approved the Cameroonian authorities' request for a waiver for non-compliance with the continuous performance criteria concerning the non-accumulation of new external payment arrears.

Mitsuhiro Furusawa added that it is essential for Cameroon to stay the course on fiscal consolidation to constitute fiscal and external buffers. Authorities are encouraged to broaden the base of non-oil revenues, reduce discretionary tax exemptions, fight tax evasion and avoidance, and improve tax and customs administration. 

The IMF also calls for the completion of the reform of the Treasury single account and the reduction of direct interventions as well as exceptional spending procedures will help improve cash management and budget execution and enhance transparency. and budgetary credibility. 

Cameroon's three-year FEC agreement (2017-2019) was approved on June 26, 2017 for approximately $ 666.1 million (nearly CFAF 400 billion). The arrangement aims to support the country's efforts to restore external and fiscal sustainability and to lay the foundations for more sustainable, inclusive and private sector-led growth.