Tanzania: IMF approves US$11.8m financial assistance for CAR

Dar es Salaam, Tanzania (PANA) - The International Monetary Fund (IMF) Wednesday announced a US$11.8-million package in financial assistance for Central African Republic (CAR.) under the Rapid Credit Facility (RCF), to assist the authorities to meet urgent balance of payments needs and to support their emergency economic recovery programme.

PANA quoted the Fund as saying in a statement that the authorities in CAR have implemented most of their quantitative and policy objectives under their economic programme, including strengthening the institutional framework to enhance financial governance, appointing the head of the Treasury and accounting unit, enhancing revenue collection and rationalizing the wage bill.

"The CAR authorities continued their efforts to improve security conditions, promote an inclusive domestic political dialogue and move forward with their economic programme supported by the Fund and the international community.

"Reflecting a prudent spending policy, the government covered its key obligations, remained current on wage and debt service payments, and avoided accumulating arrears in salaries and pensions," the IMF said.

Given the progress that was made in policy implementation under the authorities’ economic programme, the Fund was optimistic that the new financial assistance will help CAR authorities to continue with implementation of a set of economic and structural policies aimed at restoring macroeconomic stability, achieving fiscal consolidation, and strengthening the country's capacity.

CAR's economic prospects for 2016 are positive, according to the IMF, with real GDP growth being projected at 5.7 percent, but risks remain high, including a protracted transition and lower external support.

Following the Executive Board’s discussion, IMF Deputy Managing Director and Acting Chair, Min Zhu, observed: “The Central African Republic is gradually recovering from a major political and security crisis in 2013 that led to the collapse of the economy and a humanitarian crisis.

"In recent months, improved security conditions enabled the restoration of state authority in most regions of the country. The intensified domestic inclusive political dialogue was instrumental in laying out a schedule toward crucial elections that could end the political transition before year-end."

Anticipating public finances to remain under pressure, he said that comprehensive plans adopted to enhance revenue collection and further reform the wage bill should facilitate the transition to the post-emergency phase.

"Continued external financial and technical assistance will remain critical for the economy to lift growth prospects and reduce poverty," Min added, assuring that the Fund "will continue to play a key role in coordinating international efforts in support of the government’s economic, financial, and social strategies to step-up growth and promote inclusive social development and peace.”
-0- PANA AR/SEG 16Sept2015

16 september 2015 09:13:15

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