IMF Approves $666.2m Funding Assistance for Cameroon

June 27, 2017

By Dipo Olowookere

An immediate disbursement of N666.2 million under the Extended Credit Facility (ECF) has been approved for Cameroon by the Executive Board of the International Monetary Fund (IMF).

Cameroon’s ECF-supported program aims to restore the country’s fiscal and external sustainability and unlock job-rich, private sector-driven growth.

The funding assistance was approved by the global lender on Monday, June 26, 2017 and it is expected to create reforms that will maintain financial stability and boost financial inclusion, and address structural obstacles to competitiveness and economic diversification, will be key in accelerating private sector-led diversification.

IMF, in a statement, disclosed that $171.3 million would be immediately made available to Cameroon, further to the approval of the arrangement. The remaining amount will be phased in over the duration of the program, subject to semi-annual program reviews.

Commenting, Deputy Managing Director and Acting Chair of the IMF, Mr Mitsuhiro Furusawa, stated that, “Cameroon has been hit hard by the twin oil price and security shocks which have affected the CEMAC region since 2014 and led to a sharp drop in the pooled international reserves. Having initially shown resilience owing to its greater diversification, the Cameroonian economy is now facing decelerating growth, declining fiscal and external buffers, and rapidly-rising public debt.

“The authorities’ Fund-supported program appropriately aims at addressing Cameroon’s large balance of payments need and restoring fiscal and external sustainability, while also contributing to the collective effort to rebuild regional reserves.

“The Cameroonian authorities’ leadership has been instrumental in spearheading the coordinated regional response to maintain the integrity of the CEMAC’s monetary arrangement.

“Addressing the rising fiscal and external imbalances requires a sustained and balanced fiscal consolidation based on expanding the non-oil revenue base, prioritizing public investment projects with demonstrated growth dividends, and rationalizing recurrent expenditure, while protecting social spending. The authorities’ fiscal program is supported by comprehensive structural reforms in revenue mobilization and public financial management to further boost non-oil revenue collection, improve spending efficiency, and contain fiscal risks.

“The authorities are committed to enhance Cameroon’s competitiveness and medium-term growth potential, in line with their strategy to reach emerging economy status by 2035. The completion of large energy and transport public infrastructure projects will help boost private sector investment, job creation and further diversification, and is supported by complementary reforms to maintain financial stability, expand access to financial services and improve the business environment.

“The success of Cameroon’s program will also depend on the implementation of supportive policies and reforms by the regional institutions.”

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

Leave a Reply

Previous Story

IMF Okays $16.1m Funding Package for Gambia

Next Story

‘Fuji House of Commotion’ Actor Victor Eze Dies

Latest from Economy

NASD Unlisted Security Index

NASD Index Declines by 0.02%

By Adedapo Adesanya There was a 0.02 per cent loss at the NASD Over-the-Counter (OTC) Securities Exchange on Friday, June 21 after the share

Don't Miss