Press Release No. 18/376

IMF Staff Team Completes Mission to Côte d’Ivoire

October 3, 2018

• IMF staff team and authorities reach staff level agreement on the fourth review under ECF and EFF arrangements, subject to approval by IMF management and the Executive Board.

• Performance under the IMF-supported program was good in the first half of 2018.

• Staff noted the progress in strengthening the financial sector in the context of the regional transition to the new regulatory standards.

An International Monetary Fund (IMF) mission led by Ms. Céline Allard visited Abidjan from September 19 to October 3, 2018 to hold discussions on the fourth review of the three-year economic and financial program supported by the IMF through arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).

At the conclusion of the mission, Ms. Allard issued the following statement:

“The discussions on the fourth review under ECF and EFF arrangements have allowed the authorities and the IMF team to reach a staff level agreement, subject to approval by IMF management and the Executive Board. Consideration by the IMF’s Executive Board is expected in December 2018.

“The Ivoirian economy exhibited resilience after the exogenous and endogenous shocks of 2017, and strong economic performance is projected in 2018 and 2019. Inflation should remain subdued well below the 3 percent regional threshold of the Western Africa Economic and Monetary Union (WAEMU).

“Performance under the IMF-supported program was good in the first half of 2018. All performance criteria and indicative targets for end-June 2018 were met. Structural benchmarks on public debt management, public enterprise monitoring, and tax policy and administration were also met. The fiscal budget deficit is expected to be contained to 4.0 percent of GDP in 2018, in line with the program target, with a small revenue shortfall offset mostly by lower public investments.

“The IMF mission and authorities agreed on fiscal policy measures for the 2019 budget to secure key program objectives. These measures should enable the projected fiscal deficit to decrease to 3.0 percent of GDP in 2019 and thus comply with the WAEMU regional deficit norm. IMF staff and the authorities also agreed on policies to secure debt sustainability while making space to finance the National Development Program (2016-2020).

“The mission noted improvements in the restructuring and the oversight of public enterprises, and the monitoring of public-private partnership projects and their fiscal-related risks. Staff also commended the Ivoirian authorities for the measures taken to buttress the energy sector and to ensure sector sustainability over the medium term.

“Staff noted the progress in strengthening the financial sector in the context of the regional transition to the new regulatory standards aligned with the Basel II/III principles, and welcomed the recapitalization of one public bank.

“The IMF team thanks the authorities for their hospitality and productive discussions.”

The IMF mission met with His Excellency President Alassane Ouattara; Prime Minister Amadou Gon Coulibaly; Minister of Finance Adama Koné; Minister of Oil, Energy and Development of Renewable Energies Thierry Tanoh; Minister of Planning Nialé Kaba, Minister of Public Service Issa Coulibaly; Minister of Agriculture Mamadou Sangafowa Coulibaly, Secretary of State in charge of the Ministry of Budget and State Holdings Moussa Sanogo; and other senior officials including at the BCEAO.