Cameroon: Request for a Three-Year Arrangement Under the Extended Credit Facility — Press Release; Staff Report; and Statement by the Executive Director for Cameroon

IMF Staff Country Reports, July 5, 2017

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Canonical URL: Cameroon: Request for a Three-Year Arrangement Under the Extended Credit Facility — Press Release; Staff Report; and Statement by the Executive Director for Cameroon

Cameroon has been hit by significant export price declines and security threats since 2014.
Consequences highlighted:
- Oil revenue declined.
- Security and humanitarian spending increased.
- Large infrastructure programs continued.
- Resulting macroeconomic pressures included widening fiscal and current account deficits, rapidly accumulating external debt, and a decline in imputed reserves.

Fiscal and external balances have deteriorated due to:
- Lower petroleum revenue.
- Higher spending needs for security and humanitarian response.
- Continued large public investment commitments.
External balance pressures:
- Rapid accumulation of external debt.
- Decline in imputed reserves.
Subject tags indicating focus areas: Debt sustainability analysis, External debt, Fiscal consolidation, Fiscal policy, Fiscal stance, Public debt, Public financial management (PFM).

The Cameroonian authorities are requesting a three-year program under the Extended Credit Facility (ECF) in the amount of SDR 483 million.
Program objectives stated:
- Restore external and fiscal sustainability.
- Lay the foundations for sustainable, private-sector led growth.

IMF staff supports the authorities’ request for an ECF-supported program.
The report discussed the rationale for IMF engagement to address:
- Fiscal consolidation needs.
- External debt and balance of payments pressures.
- Structural reforms to support private-sector led growth.