IMF Executive Board Completes First and Second Reviews of Central African Republic’s Arrangement Under Extended Credit Facility and Approves US$ 34.4 Million

  • Completion of the reviews enables an immediate disbursement of US$ 34.4 million)
  • The Covid-19 pandemic has had a substantial impact on C.A.R.’s economy but appears now somewhat contained
  • Program implementation has improved over recent months, during which the authorities focused on ensuring that emergency donor financing is efficiently and transparently used to fight the pandemic.
  • Washington, DC – January 12, 2021: The Executive Board of the International Monetary Fund (IMF) today completed the first and second reviews of the Central African Republic’s (CAR) economic and financial program supported by an Extended Credit Facility (ECF) arrangement. Completion of the reviews enables the disbursement of SDR 23.87 million, about US$ 34.4million), bringing total disbursements under the arrangement to SDR 35.8 million, about US$ 51.6million.

    In completing the two reviews, the Executive Board also approved the authorities’ request for waiver of non-observance of performance criteria.

    CAR’s ECF arrangement was originally approved by the Executive Board on December 20, 2019 for SDR 83.55 million, about US$ 115.1 million, or 75 percent of the Central African Republic’s quota in the Fund) – See Press Release No 19/484.

    The IMF-supported program aims to maintain macroeconomic stability, strengthen administrative capacity, governance and the business climate, and address the country’s protracted balance of payment needs.

    Following the Executive Board discussion on CAR, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement:

    “The Covid-19 pandemic has had a substantial impact on C.A.R.’s economy but appears to be somewhat contained. Performance under the ECF arrangement has been adversely affected by the pandemic and early policy and reform shortfalls. Program implementation has, however, improved over recent months, during which the authorities focused on ensuring that emergency donor financing is efficiently and transparently used to fight the pandemic and alleviate its impact on the most vulnerable. Substantial progress was also made in implementing structural reforms.

    “Looking ahead, the authorities will pursue their efforts to support the economic recovery and make progress toward poverty reduction. They aim to prioritize social spending, improve domestic revenue mobilization, consolidate the single treasury account, and enhance public sector supervision. They will also implement reforms to strengthen governance and the business climate, including through the submission to parliament of a new anti-corruption law and the publication of public procurement contracts.

    “Continued financial and technical support from development partners remains critical to the program’s success. Given its high risk of debt distress and limited revenue base, C.A.R. will have to continue to rely heavily on grant financing for its most pressing spending needs.

    “C.A.R.’s program will continue to be supported by implementation of policies and reforms by the CEMAC regional institutions, which notably aim at supporting an increase in regional net foreign assets.”

    Central African Republic: Selected Economic and Financial Indicators, 2018-2025

    2018

    2019

    2020

    2021

    2022

    2023

    2024

    2025

    Est.

    ECF

    Est.

    ECF

    RCF

    Proj.

    ECF

    RCF

    Proj.

    Proj.

    (Annual percentage change; unless otherwise indicated)

    National income and prices

    GDP at constant prices

    3.8

    4.5

    3.0

    5.0

    1.0

    0.0

    5.0

    4.0

    3.5

    5.0

    5.0

    5.0

    5.0

    GDP per capita at constant prices

    2.3

    2.8

    1.3

    3.2

    -0.7

    -1.8

    3.1

    2.0

    1.5

    3.0

    3.0

    3.0

    3.0

    GDP at current prices

    5.2

    7.4

    5.4

    7.6

    3.4

    1.9

    7.6

    6.6

    6.1

    7.7

    7.6

    7.6

    7.6

    GDP deflator

    1.3

    2.8

    2.4

    2.5

    2.3

    2.0

    2.5

    2.5

    2.5

    2.5

    2.5

    2.5

    2.5

    CPI (annual average)

    1.6

    3.2

    2.7

    2.5

    1.2

    2.1

    2.5

    2.5

    1.8

    2.5

    2.5

    2.5

    2.5

    CPI (end-of-period)

    4.6

    -0.3

    -2.8

    2.5

    3.5

    3.0

    2.5

    2.5

    2.5

    2.5

    2.5

    2.5

    2.5

    Money and credit

    Broad money

    14.0

    3.2

    8.9

    14.9

    12.3

    7.5

    5.8

    0.8

    10.3

    4.0

    4.7

    6.6

    7.9

    Credit to the economy

    11.5

    3.0

    -1.0

    5.0

    -2.0

    -3.0

    7.0

    7.0

    5.0

    8.0

    8.0

    8.0

    8.0

    External sector

    Export volume of goods

    10.3

    -6.5

    -6.7

    14.9

    -9.9

    -3.1

    6.0

    11.5

    8.2

    10.7

    12.6

    10.0

    8.8

    Import volume of goods

    -0.8

    10.4

    11.3

    7.8

    -1.3

    -0.8

    4.0

    4.5

    0.1

    4.6

    6.1

    5.8

    6.6

    Terms of trade

    -12.5

    12.7

    14.7

    3.5

    -0.1

    -19.6

    2.2

    5.9

    5.3

    2.4

    3.0

    1.2

    3.8

    (Percent of GDP; unless otherwise indicated)

    Gross national savings

    8.4

    10.5

    9.7

    10.6

    10.5

    11.1

    11.0

    10.6

    9.7

    10.6

    11.3

    12.0

    12.6

    Of which: current official transfers

    3.0

    6.0

    6.0

    3.7

    5.2

    5.7

    3.4

    3.7

    3.7

    3.2

    2.7

    2.2

    1.8

    Gross domestic savings

    -1.4

    -1.9

    -3.7

    0.3

    -1.1

    -0.8

    0.9

    -0.1

    -1.2

    0.2

    1.3

    2.1

    3.2

    Government

    -1.2

    -1.6

    -2.5

    -1.3

    -4.3

    -4.5

    -0.9

    -0.6

    -2.3

    -1.0

    -0.5

    -0.4

    -0.2

    Private sector

    -0.2

    -0.3

    -1.2

    1.6

    3.2

    3.8

    1.7

    0.5

    1.1

    1.2

    1.9

    2.5

    3.4

    Consumption

    101.4

    101.9

    103.7

    99.7

    101.1

    100.8

    99.1

    100.1

    101.2

    99.8

    98.7

    97.9

    96.8

    Government

    7.7

    7.3

    8.0

    7.5

    8.9

    9.0

    7.5

    7.5

    8.0

    7.7

    7.7

    7.8

    7.7

    Private sector

    93.7

    94.6

    95.6

    92.3

    92.2

    91.7

    91.7

    92.5

    93.2

    92.1

    91.0

    90.1

    89.0

    Gross investment

    16.4

    16.2

    14.7

    16.9

    16.2

    18.6

    16.3

    15.9

    15.8

    16.2

    16.8

    17.5

    18.1

    Government

    7.4

    7.1

    5.6

    7.9

    8.7

    11.1

    7.2

    7.6

    7.5

    7.3

    7.3

    7.5

    7.6

    Private sector

    9.0

    9.0

    9.0

    9.0

    7.5

    7.5

    9.0

    8.3

    8.3

    8.9

    9.5

    10.0

    10.5

    External current account balance

    with grants

    -8.0

    -5.6

    -4.9

    -6.3

    -5.7

    -7.6

    -5.3

    -5.2

    -6.1

    -5.6

    -5.5

    -5.5

    -5.6

    without grants

    -12.3

    -12.9

    -12.3

    -11.6

    -12.5

    -15.0

    -10.4

    -10.7

    -11.7

    -10.8

    -10.2

    -9.7

    -9.4

    Overall balance of payments

    -1.7

    1.0

    -1.1

    1.3

    -0.5

    -0.3

    1.5

    0.2

    -0.2

    0.2

    2.0

    2.4

    2.6

    Central government finance

    Total revenue (including grants)

    16.6

    19.4

    18.3

    18.6

    19.6

    21.8

    18.4

    18.9

    18.0

    18.3

    18.1

    17.7

    17.4

    of which: domestic revenue

    8.9

    8.7

    8.7

    9.7

    8.5

    8.5

    10.0

    10.3

    9.3

    10.2

    10.7

    10.9

    11.1

    Total expenditure 1

    17.6

    17.6

    16.9

    19.0

    21.7

    24.3

    18.3

    18.6

    19.3

    18.6

    18.6

    18.8

    19.0

    of which: capital spending

    7.4

    7.1

    5.6

    7.9

    8.7

    11.1

    7.2

    7.6

    7.5

    7.3

    7.3

    7.5

    7.6

    Overall balance

    Excluding grants

    -8.7

    -8.9

    -8.2

    -9.3

    -13.1

    -15.8

    -8.2

    -8.3

    -10.0

    -8.4

    -7.9

    -8.0

    -7.9

    Including grants

    -1.0

    1.8

    1.4

    -0.4

    -2.1

    -2.5

    0.2

    0.4

    -1.3

    -0.4

    -0.6

    -1.1

    -1.6

    Domestic primary balance 2

    -1.7

    -3.0

    -3.5

    -2.7

    -5.8

    -6.2

    -2.5

    -2.5

    -4.0

    -2.8

    -2.5

    -2.5

    -2.5

    Public sector debt 3

    50.0

    47.1

    47.2

    42.6

    47.1

    46.8

    39.8

    44.5

    44.1

    40.9

    38.8

    37.2

    35.8

    Of which: domestic debt 4

    12.8

    10.4

    11.1

    6.9

    7.3

    9.5

    5.8

    6.2

    7.1

    6.2

    5.7

    5.3

    4.8

    Of which: external debt

    37.2

    36.7

    36.1

    35.7

    39.8

    37.3

    34.0

    38.3

    36.9

    34.8

    33.2

    31.9

    31.0

    Memorandum items:

    GDP per capita (US dollars)

    489

    500

    480

    534

    486

    481

    567

    513

    525

    558

    591

    622

    655

    Nominal GDP (CFAF billions)

    1,266

    1,360

    1,334

    1,464

    1,380

    1,360

    1,575

    1,471

    1,443

    1,554

    1,672

    1,799

    1,935

    Sources: C.A.R. authorities and IMF staff estimates and projections.

    1 Expenditure is on a cash basis.

    2 Excludes grants, interest payments, and externally-financed capital expenditures.

    3 The changes in domestic debt estimates reflect a correction of the estimates reported in the RCF’ staff report tables, which had not been updated. This did not affect the debt sustainability analysis.

    4 Comprises government debt to BEAC, commercial banks, and government arrears.

    /Public Release. The material in this public release comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.