The International Monetary Fund is planning to issue a total of USD117.46 million to Central Africa Republic that will cater for at least 75 percent of the country’s budget.
A statement issued by the IMF mission revealed that they had reached staff-level agreement with CAR authorities before approval by IMF Management and the Executive Board, on an economic programme that could be supported by a three-year Extended Credit Facility arrangement.
“The IMF staff team and the Central African Republic authorities held discussions on a long delayed Article IV consultation. The discussions focused on economic policies and structural reforms needed to bring back the economy on the path of sustainable and inclusive growth, improve competitiveness, and foster good governance, following years of a protracted political and humanitarian crisis that started in 2012,” read the statement.
The transition government in place implemented an emergency programme aimed at restoring security, basic government functions, and fiscal discipline, as well as rebuilding administrative capacity.
IMF has called on the newly elected government to restore a sustainable budget discipline and scale up its social spending and public investment.
“Other key elements of the reforms include policies to improve public financial management, including treasury management, to restore control and transparency in the execution of the budget. In addition, better control of the wage bill would allow new hiring in the health and education sectors. The authorities’ structural reform agenda comprises also measures to increase banking intermediation, improve the business environment, address corruption, and build capacity,” read the statement.
Central African Republic has until recently been torn by sectarian violence between the Seleka rebel coalition and government forces that led to thousands of deaths and migrations.
A UN-backed envoy helped to restore calm in the country that later saw CAR hold a peaceful election in 2016.