By Dipo Olowookere
A funding package of about $224.8 million has been approved for West African country, Côte d’Ivoire.
The approval followed completion of the first reviews of Cote d’Ivoire economic program supported by three-year arrangements under the Extended Credit Facility (ECF) and Extended Arrangement under the Extended Fund Facility (EFF) by the International Monetary Fund (IMF).
The IMF said country’s economic outlook remains strong, with growth projected at about 7 percent in 2017–19.
The ECF/EFF-supported programs aim at supporting the authorities’ efforts to achieve a sustainable balance of payments, inclusive growth, and poverty reduction.
The $224.8 million approved by the IMF board is an augmentation of access under the two arrangements or 25 percent of the country’s quota.
This brings total access under the two arrangements to $899.2 million or 100 percent of quota.
However, after the completion of the review, the immediate disbursement of $133.8 million, including $37.5 million has been approved for the nation.
This brings total disbursements under the arrangement so far to about $230.1 million.
Côte d’Ivoire’s three-year $ 674.4 million at the time of approval, the equivalent of 75 percent of Côte d’Ivoire’s quota in the IMF were approved by the IMF Executive Board on December 12, 2016 to support authorities’ efforts to achieve a sustainable balance of payments position; inclusive growth, and poverty reduction; catalyze official and private financing; and build resilience to future economic shocks.
Following the Executive Board discussion, Mr Furusawa, Acting Chair and Deputy Managing Director, stated, “Côte d’Ivoire’s performance under its Fund-supported program has been satisfactory. The country has been hit by a substantial terms of trade shock and experienced social tensions earlier this year. Nonetheless, the country’s economic outlook remains strong, with growth projected at about 7 percent in 2017–19.
“The authorities have appropriately responded to the challenges by lowering the regulated cocoa producer price and adopting fiscal adjustment measures that aim to limit the fiscal deficit to 4.5 percent of GDP in 2017. The authorities have also reaffirmed their commitment to the convergence of the fiscal deficit to the WAEMU norm of 3 percent of GDP by 2019. Fiscal consolidation will be anchored on the implementation of new revenue measures starting in 2018 and containment of current spending while protecting pro-poor outlays.
“The authorities are improving public financial management and strengthening debt management operations with Fund technical assistance. To support fiscal consolidation, the authorities will need to address vulnerabilities in the energy and financial sectors. Structural reforms should also be accelerated to help improve the business climate and sustain robust and inclusive growth.”
