Press Release No. 19/288

IMF Executive Board Completes Fourth ECF Review for Cameroon and Approves US$76.2 Million Disbursement

July 17, 2019

The Executive Board of the International Monetary Fund (IMF) completed the fourth review of the arrangement under the Extended Credit Facility (ECF) for Cameroon on July 17, 2019. The completion of the review enables the disbursement of SDR 55.2 million (about US$76.2 million), bringing total disbursements under the arrangement to SDR 372.6 million (about US$514.5 million).

The Executive Board also approved the authorities’ request for a waiver for the non-observance of the performance criteria pertaining to the external arrears’ accumulation and the ceiling on net BEAC financing, based on the corrective actions taken by the authorities.

Cameroon’s three-year arrangement was approved on June 26, 2017 for SDR 483 million (about US$666.9million, or 175 percent of Cameroon’s quota—see Press Release No.17/248.) The arrangement aims at supporting the country’s efforts to restore external and fiscal sustainability and to lay the foundations for a more sustainable, inclusive and private sector-led growth.

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

“Cameroon’s performance under the ECF-supported program has improved from a year ago. Most end-December 2018 targets including on the fiscal deficit have been met, and structural reforms are advancing.

Cameroon continues to play a leadership role in the rebuilding of CEMAC’s fiscal and external buffers. Going forward, the Cameroonian authorities’ continued support of the implementation of the BEAC’s foreign exchange regulation will be essential to ensure full repatriation of foreign exchange receipts.

Enhanced fiscal discipline is key to reaching the end-2019 program targets and mitigating risks from external shocks and security challenges. Reducing recourse to exceptional spending procedures and completing the Treasury Single Account reform will support the steadfast implementation of the 2019 budget while improving cash management and the transparency of budget execution.

Refraining from new non-concessional borrowing and strictly adhering to the disbursement plan for contracted-but-undisbursed loans are essential to preserving debt sustainability. Further project prioritization and enhanced investment efficiency will help address developmental needs while supporting prudent debt management. Improving the financial viability of key public enterprises through performance contracts and targeted reforms of administered prices will reduce reliance on subsidies and mitigate risks from contingent liabilities.

Enhancing financial inclusion, the business climate, and governance remains central to promoting private sector development and boosting competitiveness. In particular, further strengthening EITI compliance and the AML/CFT framework are essential to promoting private sector-led growth and attracting foreign investment.

Cameroon’s program continues to be 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.”