Press Release No. 17/472

IMF Executive Board Completes Second Reviews of the ECF and the EFF Arrangements for Côte d’Ivoire and Approves US$136.5 Million Disbursement

December 8, 2017

On December 8, 2017, the Executive Board of the International Monetary Fund (IMF) completed the second reviews of Côte d’Ivoire program supported by the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF). The decision was taken without a Board meeting [1] and enables the disbursement of SDR 96.786 million (about US$136.5 million), bringing total disbursements under the arrangements to SDR 263.258 million (approximately US$371.3million).

Performance under the EFC/EFF-supported program was strong in the first half of 2017. All performance criteria and indicative targets for end-June 2017 were observed and all structural benchmarks were met. Sound policies implemented by the authorities in the context of the IMF-supported program have helped secure confidence of the international financial markets, which enabled a successful Eurobond issuance in June.

Economic activity remains strong in 2017. The economy has coped well with the terms of trade shocks and social tensions. Real GDP growth is expected to stay above 7 percent in 2017-19, with broadly balanced risks to the outlook. Inflation is expected to remain subdued. The fiscal budget deficit is expected to be contained to 4.5 percent of GDP in 2017 and converge to the WAEMU regional norm of 3 percent of GDP in 2019.

The authorities are advancing structural reforms, including on program budgeting and streamlining the expenditure chain, strengthening public investment management and monitoring fiscal risks stemming from public enterprises and PPPs. It will be essential that they continue to maintain debt sustainability, while making space to finance their National Development Program (2016-2020) by stepping up revenue mobilization, rationalizing tax exemptions, and strengthening the evaluation and prioritization of new investment projects.

It will be equally important for the authorities to accelerate structural reforms critical to sustaining private sector-led economic development, which would spur growth and reinforce the country’s regional economic role. In this regard, the measures implemented by the Ivoirien authorities in the energy sector will improve its financial viability. Alongside, the recapitalization of one public bank will contribute to financial sector stability.