IMF Executive Board Completes Fourth Reviews under an Extended Credit Facility and Extended Fund Facility for Côte d’Ivoire and Approves US$133.7 Million Disbursement

December 13, 2018

  • The country’s economic outlook remains robust, with growth projected at about 7½ percent in 2018–19.
  • The budget deficit is projected to converge to the WAEMU regional norm of 3 percent of GDP in 2019.
  • The program aims to achieve a sustainable balance of payments position, enhance domestic revenue mobilization, ensure debt sustainability, and foster inclusive growth and poverty reduction.

On December 12, 2018, the Executive Board of the International Monetary Fund (IMF) completed the fourth reviews under the Extended Credit Facility (ECF) [1] and Extended Arrangement under the Extended Fund Facility (EFF) [2] for the Republic of Côte d’Ivoire. Completion of the reviews enables the immediate disbursement of SDR 96.786 million (about US$133.7 million).

The three-year ECF/EFF arrangements with a total access of SDR 650.4 million (about US$898.4 million or 100 percent of Côte d’Ivoire’s quota) were approved by the IMF Executive Board on December 12, 2016.

Following the Executive Board discussion, Mr. Furusawa, Acting Chair and Deputy Managing Director, made the following statement:

“Côte d’Ivoire is implementing a program of macroeconomic policies and structural reforms to sustain strong growth, ensure macroeconomic stability, reduce poverty and promote inclusiveness. The performance under this IMF-supported program has been satisfactory, especially on meeting the agreed quantitative performance criteria. Progress has also been made with regards to structural benchmarks, although more remains to be accomplished going forward. With determined implementation of sound economic policies and structural reforms, the medium-term growth outlook can be expected to remain robust.

“On the fiscal front, the budget deficit target for 2018 is within reach, and the authorities have reiterated their commitment to meet the regional WAEMU deficit norm of 3 percent of GDP in 2019. Achieving these goals will require additional revenue-enhancing measures and spending restraint while protecting pro-poor outlays. On the financing side, the authorities’ new debt management strategy envisages an even mix of domestic and foreign currency sources. In that context, a prudent borrowing policy, which carefully assesses the cost and benefits of new loans, is required to keep Côte d’Ivoire’s debt on a sustainable path. Strengthening public financial and debt management remain critical to maintaining debt sustainability.

“On the structural front, the authorities intend to persevere with reforms to enhance revenue administration and public financial management, improve the business climate, promote inclusive growth and consolidate banking sector stability. They also intend to enhance Côte d’Ivoire’s statistical system to better inform policy decisions.”

 

 Côte d’Ivoire: Selected Economic Indicators: 2015–20

2015

2016

2017

2018

2019

2020

Est.

Projections

(Annual percentage changes, unless otherwise indicated)

National income

GDP at constant prices

8.8

8.0

7.7

7.4

7.5

7.2

GDP deflator

3.1

-1.1

-1.7

0.4

1.1

1.8

Consumer price index (annual average)

1.2

0.7

0.8

1.7

2.0

2.0

External sector

Exports of goods, f.o.b., at current prices

8.2

-7.0

8.0

16.7

8.6

7.6

Imports of goods, f.o.b., at current prices

12.6

-8.5

18.2

21.6

8.7

8.3

Central government operations

Total revenue and grants

18.9

6.6

8.0

8.2

9.3

10.0

Total expenditure

21.8

12.2

9.9

5.9

5.0

9.5

Money and credit

Money and quasi-money (M2)

17.3

10.1

8.8

11.0

11.9

13.0

Credit to the economy

28.5

13.3

15.2

13.4

14.1

12.1

(Percent of GDP unless otherwise indicated)

Central government operations

Total revenue and grants

20.0

20.0

20.4

20.4

20.5

20.7

Total revenue

18.5

18.6

19.2

19.2

19.4

19.6

Total expenditure

22.8

24.0

24.9

24.4

23.6

23.7

Overall balance, incl. grants, payment order basis

-2.8

-4.0

-4.5

-4.0

-3.0

-3.0

Gross investment

20.1

17.7

19.5

21.8

22.4

23.5

Central government

6.7

7.4

7.5

7.6

7.2

7.3

Nongovernment sector

13.4

10.3

12.0

14.2

15.1

16.2

Gross domestic saving

23.6

20.3

20.4

21.7

22.4

23.6

Central government

2.9

2.2

2.0

2.6

3.6

4.1

Nongovernment sector

20.7

18.2

18.4

19.2

18.8

19.4

External sector balance

Current account balance

-0.6

-1.2

-3.5

-3.9

-3.7

-3.7

Overall balance

2.0

-1.2

1.0

1.1

0.0

0.6

Public sector debt

Central government debt, gross

47.3

48.4

49.8

52.6

51.0

49.7

Central government debt (excluding C2D)

40.7

43.1

45.3

49.1

48.4

47.9

External debt

29.5

29.0

30.5

36.7

36.8

34.1

External debt (excluding C2D)

22.2

23.4

25.4

32.7

33.8

31.9

Memorandum items:

Nominal GDP (CFAF billions)

19,595

20,931

22,151

23,892

25,957

28,307

Poverty rate (in percent)

46.3

…

…

…

…

…

Sources: Ivoirien authorities; and IMF staff estimates and projections.


[1] The ECF is a lending arrangement that provides sustained program engagement over the medium to long term in case of protracted balance of payments problems.

[2] The EFF was established to provide assistance to countries: (i) experiencing serious payments imbalances because of structural impediments; or (ii) characterized by slow growth and an inherently weak balance of payments position.

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