IMF Reaches Staff-level Agreement with Côte d’Ivoire
IMF News, October 11, 2016
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Bibliographic details
- Published: October 11, 2016
Program overview and financing
- Staff-level agreement reached on a three-year program.
- Program could be supported by two arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for SDR 487.8 million (about USD 674.3 million) or 75 percent of Côte d’Ivoire’s quota in the IMF.
- Subject to IMF management approval, the staff-level agreement is expected to be submitted to the IMF Executive Board for its consideration in December 2016.
Objectives and alignment with national strategy
- The program will support the broad objectives of Côte d’Ivoire’s 2016‑2020 National Development Plan (NDP).
- NDP aims cited: foster conditions for continued strong and inclusive growth and poverty reduction through investment in infrastructure and social sectors, structural transformation and industrialization of the economy by the private sector.
- Program aims to address impediments to a sustainable balance of payments position and economic growth.
Fiscal targets and revenue/expenditure strategy
- Government’s budget deficit would converge to the WAEMU norm of 3 percent of GDP by 2019 to preserve public debt sustainability and support the regional international reserves pool.
- Key program objectives related to fiscal policy:
- Contain current expenditure.
- Mobilize additional revenues through broadening the tax base.
- Further improve tax administration.
Public financial management, debt, and financial sector reforms
- Program includes a comprehensive set of reforms aimed at enhancing public financial and debt management practices, which include:
- Strengthening debt management.
- Expanding the monitoring of public entities beyond the central government.
- Containing fiscal risks emanating from some public enterprises in financial difficulty.
- Restructuring public banks.
- Improving the business climate.
- Authorities requested further technical assistance to support efforts to improve the quality and dissemination of economic statistics; the staff welcomes this request.
Expected impacts and rationale (mission chief statement)
- “With the implementation of these policies, Côte d’Ivoire will create fiscal space for more infrastructure investment and social spending, catalyze official and private financing, and build resilience to future economic shocks.”
- Program expected to help the government continue building on achievements of the past four years and further strengthen foundations for strong and inclusive growth and poverty reduction.
IMF Press Release No. 16/457, October 11, 2016 — Statement by Dan Ghura, mission chief for Côte d’Ivoire.