IMF completes first review of staff monitored programme of Central African Republic
Washington, DC, US (PANA) - The Management of the International Monetary Fund (IMF) says it approved on 31 March, 2022, the completion of the first review of a seven-month (December 2021 - June 2022) Staff Monitored programme (SMP) with the Central African Republic (CAR).
A statement issued on Wednesday said policies under the SMP aim to address the challenges caused by the security crisis and the COVID-19 pandemic, provide a roadmap to improve the track record of policy implementation and help the country to benefit from budget support by development partners.
It saud fiscal policy focuses on the sustainable financing of additional high-priority social spending and investments. Structural reforms focus on strengthening revenue mobilization, fiscal transparency, and governance, including in the extractive sector.
"The (CAR) authorities made satisfactory progress through end-December 2021," the IMF said. "Thanks to a slightly higher revenue mobilization and improved spending execution, they met all quantitative targets. They also met all structural benchmarks," it added.
The statement said while the authorities met the indicative target on social spending, however, they missed those on domestic arrears and spending through extraordinary procedures, owing to monitoring weaknesses which are being addressed through IMF capacity development.
Downside risks related to the food and fuel shocks and uncertainties about budget support, are mounting, the IMF noted.
"Reaching an agreement with development partners on the disbursement of the budget support will be critical to preserve stability and limit hardship on the population. Financing assurances will also be required for a transition to an IMF financing arrangement."
The IMF also added that achieving tangible progress on the peace dialogue will sustain the recovery, strengthen inclusion, and unlock CAR’s growth potential.
-0- PANA MA 14April2022
