IMF Wraps Up Eighth Reviews Under Cameroon Funding

• The IMF Executive Board concluded today the eighth reviews under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements, allowing for a disbursement equivalent to about US$75.7 million.
• The IMF Executive Board also concluded the third review under the Resilience and Sustainability Facility (RSF) arrangement, making available about US$71 million in support of Cameroon's climate change agenda.
• Cameroon's economy continued growing, albeit at a modest pace. Pursuing a prudent fiscal stance remains paramount to preserve debt sustainability. To boost growth in the medium-term, decisive actions are needed to mobilize non-oil revenues, mitigate financial sector vulnerabilities, and address public-financial management, governance and anti-corruption weaknesses.

Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded today the eighth reviews under Cameroon's Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. The completion of the ECF-EFF reviews allows for an immediate disbursement of SDR 55.2 million (about US$75.7 million), bringing total disbursements under the arrangements to SDR 593.4 million (US$793.8 million). The Executive Board also completed the third review under the Resilience and Sustainability Facility (RSF) arrangement. Completion of this review makes available SDR 51.75 million (US$71 million), with disbursements to date totaling SDR 120.75 million (US$162.3 million).

In completing the eighth ECF-EFF reviews, the Executive Board also approved the authorities' request for waivers of nonobservance of the performance criteria on the floor on the non-oil primary fiscal balance at end-December 2024 and the ceiling on the net domestic financing of the central government excluding IMF financing at end-December 2024 on the basis of corrective actions, and the continuous ceiling on Treasury advances without a budget allocation on the basis of the minor nature of the deviation.

Cameroon's three-year ECF-EFF arrangements were originally approved by the IMF Executive Board for a total amount of SDR 483 million (US$ 689.5 million, or 175 percent of quota) in July 2021. An extension of these arrangements of 12 months was approved in December 2023 to allow more time to implement the policies and reforms, and access was augmented by SDR 110.4 million (US$ 145.4 million, or 40 percent of quota). The 18-month RSF arrangement was approved by the Executive Board in January 2024 in the amount of SDR 138 million (US$ 181.7 million, or 50 percent of quota).

Following the Executive Board's discussion on Cameroon, Mr. Nigel Clarke, Deputy Managing Director and Acting Chair, made the following statement:

"Cameroon's economy continued to grow, albeit at a modest pace, and inflation has moderated relative to recent peaks. The medium-term outlook remains broadly positive, but risks are tilted to the downside. While program performance was mixed, the authorities remain committed to program objectives and have taken corrective actions.

"The authorities have successfully maintained macroeconomic stability amid domestic and external shocks. Sustaining progress in fiscal consolidation beyond the program is important to preserve debt sustainability. Key measures aim to boost non-oil revenues, improve public investment management, and strengthen domestic arrears control.

"Cameroon is at high risk of debt distress, but its debt is declining and remains sustainable. It is important to advance the restructuring of the oil refinery, implement reforms in the electricity sector, and strengthen governance in other state-owned enterprises to limit contingent liabilities, improve budgetary control, and elevate the quality of public services.

"The authorities have boosted financial sector resilience through the recapitalization of two banks. Reducing structural vulnerabilities will require efforts to clear domestic arrears, deepen the domestic financial market, implement key strategies focused on financial sector development and inclusion, and work closely with regional financial institutions.

"Stepping up governance reforms and strengthening the anti-money laundering and combatting the financing of terrorism regimes is needed to promote inclusive and durable private sector-led growth, exit from the FATF 'grey' list, and reinstate full membership in the Extractive Industries Transparency Initiative. Going forward, addressing persistent public financial management weaknesses will be critical for improving fiscal transparency.

"Cameroon has made good progress on strengthening the framework for tackling climate change risks. Efforts to implement the new framework should improve resilience to climate shocks, minimize their balance of payments impact, and help catalyze funds for new green investments at favorable terms."

Table 1. Cameroon: Selected Economic and Financial Indicators, 2024-30

(CFAF billions, unless otherwise indicated)