US: IMF gives US$11.83m financial assistance to CAR

New York, US (PANA) - The International Monetary Fund (IMF) is providing the Government of Central African Republic (CAR) with US$11.83 million (about CFAF 6.2 million) in financial
assistance under the IMF's Rapid Credit Facility (RCF).

The amount represents CAR's Special Drawing Right (SDR) of 8.355 million.

An IMF statement obtained by PANA in New York on Tuesday said the financial assistance
followed the discussions reached between CAR's Transition Government and the IMF mission
on staff-level understandings on a macroeconomic framework and policies to reinforce the
progress made since the second RCF was approved by the IMF Executive Board in March 2015.

It said these policies were aimed at further enhancing macroeconomic stability, advancing
fiscal consolidation, coordinating technical assistance, and maintaining the commitment of
international donors for continued assistance.

"Under the understandings reached, CAR would receive financial assistance through a third
RCF disbursement for an amount of SDR 8.355 million (about US$11.83 million or CFAF 6.2
billion), and this will bring IMF’s total emergency financial assistance to CAR since 2014 to
SDR 22.28 million (40 percent of quota), about US$31.49 million or CFAF 16.71 billion,"
it said.

It also said that additional contributions from development partners, contingent on the IMF’s assistance, would bring total external budget support to the CAR to CFAF 56.2 billion
or US$95.6 million which would help close the financial gap for 2015.

The statement noted that an IMF mission headed by Abdelrahmi Bessaha visited Bangui, CAR's capital, from 9-18 June to hold discussions on a possible financial assistance under the IMF’s Rapid Credit Facility (RCF) to support the authorities’ emergency programme.

It quoted Mr. Bessaha as saying: "The protracted political and security crisis in the CAR and the resulting collapse of economic activity continue to present major challenges to the Transition Government.

"For 2015, while economic activity is gradually picking up, the fragile security situation led the mission and the CAR authorities to revise the real GDP growth projection to 5.5 percent, mainly reflecting slower-than-projected recovery of forestry and mining activity.

"As a result of higher food supply and improved distribution networks, average inflation has abated and is projected to decline to 5.7 percent, still exceeding the Central African Economic and Monetary Community convergence criterion of 3 percent.

"The external current account deficit is projected to increase to 11.8 percent of GDP, on account of rising investment-related imports.''

He said the fiscal priority remained to further increase domestic revenue and enhance spending quality, with a view to limiting the domestic primary deficit to 3.7 percent of GDP in 2015.

The IMF mission met with CAR's Transition President, Mrs. Catherine Samba-Panza, and held discussions with the Prime Minister, Mr. Mahamat Kamoun, the Minister of Finance and Budget, Mr. Abdalla-Kadre Assane, and other ministers and government officials, as well as with development partners, the diplomatic community, security specialists, and the private sector.
-0- PANA AA/SEG 23June2015

23 june 2015 07:42:59




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