Devdiscourse | The three-year ECF arrangement with a total access of SDR 483 million (about US$680.7 million or 175 percent of Cameroon’s quota) was approved by the IMF Executive Board.
The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation and completed the second review under the Extended Credit Facility (ECF) arrangement for the Republic of Cameroon. Completion of this review enables the disbursement of SDR 55.2 million (about US$77.8 million).
The three-year ECF arrangement with a total access of SDR 483 million (about US$680.7 million or 175 percent of Cameroon’s quota) was approved by the IMF Executive Board on June 26, 2017.
Following the Board discussion of the ECF review, Mr. Mitsuhiro Furusawa, Deputy Managing Director, and Acting Chair made the statement below:
“Cameroon’s performance under its ECF-supported program has been mixed against the backdrop of slower economic activity and security concerns. End-year spending overruns offset strong non-oil revenue collection, resulting in a higher-than-envisaged fiscal deficit. Nonetheless, structural reform implementation has been broadly satisfactory and net foreign assets accumulated faster than anticipated owing to a narrowing of the current account deficit.
“The authorities have reiterated their commitment to the program and have implemented corrective measures to bring the fiscal adjustment back on track in 2018, including preparing a revised 2018 budget and tightening expenditure controls. Strict implementation of the 2018 revised fiscal targets will be essential to support the buildup of fiscal and external buffers for Cameroon and the region. With significant spending pressures associated with the 2018 elections, a worsening security situation, and the 2019 African Soccer Cup, any additional oil revenue should be saved.
“Public debt has risen in 2017 owing to faster-than-envisaged execution of investment projects. Strictly limiting new borrowing and tilting its composition toward concessional borrowing would be key to maintaining public debt sustainability. The stock of contracted but undisbursed debt should also be reduced. The financial sector and structural reforms would reduce vulnerabilities and address remaining competitiveness bottlenecks.
Cameroon’s program is supported by the implementation of supportive policies and reforms by the 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 the program’s success.”