The financial institution and Cote d’Ivoire have reached a service-level agreement of 3.5 billion dollars (2,102 billion CFA francs) for the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).
An IMF mission led by Olaf Unteroberdoerster visited Abidjan from March 1 to 14, where the delegation agreed with the Ivorian authorities on reforms to the National Development Programme that could be supported by a financial arrangement from the institution.
A service level agreement was reached, including access to Fund resources at 400 percent of quota (equivalent to about $3.5 billion) under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF), according to an IMF note.
IMF-supported programme
According to the note, the IMF’s support is aimed at “preserving fiscal and debt sustainability and advancing the authorities’ deeper economic transformation programme under the 2021-2025 National Development Plan.”
The Ivorian authorities have taken measures to strengthen macroeconomic stability and reverse growing fiscal and external imbalances, as the economy has been severely affected by the triple shock of the COVID-19 pandemic, global financial tightening, and negative spillovers from Russia’s war in Ukraine.
According to the IMF mission report, “the Ivorian economy has weathered the pandemic well, but the economic recovery has weakened due to negative spillovers from Russia’s war in Ukraine and global monetary tightening.”
Direct and indirect subsidies to reduce price pressures, increased security spending and deteriorating terms of trade in the context of sustained domestic demand have led to a worsening of macroeconomic imbalances in 2022, the note says.
A difficult economic context
The government of Cote d’Ivoire has requested IMF assistance under a mixed ECF/EFF arrangement to support the national development programme to promote more inclusive private sector-led growth and facilitate the country’s transition to middle-income status.
The IMF, for its part, will support the new economic programme for fiscal and debt sustainability and for developing a more prosperous and inclusive society in a context of rapid demographic change and significant external challenges.
During the mission in Abidjan, the IMF team met with Vice President Tiemoko Kone, Prime Minister Patrick Achi, Minister of State and Agriculture Kobenan Adjoumani, Minister of Planning and Development Niale Kaba, and other senior government and BCEAO officials, as well as representatives of the business community and donors.
AP/lb/abj/APA