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MIL OSI Translation. Government of the Republic of France statements from French to English

Source: MFIS in French

may 4, 2020

The IMF has approved a disbursement of $ 226 million under the rapid credit facility (RCF) to help the cameroonian authorities to respond to the urgent needs of financing their balance of payments due to the pandemic of COVID-19 and shocks on the terms of trade caused by the sharp fall in oil prices.
The IMF has also approved the request that the authorities were presented with a view to an extension until September 30, 2020 of the agreement under the extended credit facility (FEC), which is due to expire on 25 June 2020, and a rescheduling of the access to resources in the framework of this agreement.
To mitigate the impact of the pandemic, the government has taken several measures to curb the spread of the virus, increase health spending, to strengthen the social protection schemes in place and to provide assistance to households and businesses affected.

Washington. The board of directors of the international monetary Fund (IMF) has approved this day in favour of Cameroon a disbursement under the rapid credit facility (RCF) equivalent to 165,6 million SDR (approximately $ 226 million, or 60 % of its quota) to help the country meet the urgent needs of financing its balance of payments due to the pandemic of COVID-19. The pandemic of COVID-19 and shocks on the terms of trade due to the sharp fall in oil prices have significant impacts on the economy of cameroon, which recorded a historic fall in the rate of growth of real GDP.

The authorities have taken several measures to contain the spread of the disease, including increase health spending and social spending and support businesses and households affected. However, due to a marked deterioration in the macroeconomic outlook and a weakening of the fiscal position, due to a decline in revenue combined with an increase in direct spending on health and social pressing need of external financing and budget are felt. The IMF assistance will help meet the immediate needs for external funding and to preserve the fiscal space necessary for spending health-related COVID-19. It is also expected to accelerate the mobilisation of additional funds from other donors.

At the conclusion of the discussions of the board of directors on Cameroon, Mr. Mitsuhiro Furusawa, deputy director general and acting president of the Council made the following statement :

“Cameroon is facing serious problems due to the accumulated effects of the pandemic COVID-19 and shocks on the terms of trade. The weakness of global demand, lower commodity prices and the measures of containment at the national level are weighing on the outlook and have serious economic and social repercussions. These shocks have resulted in strong fiscal pressure and urgent need for financing of the balance of payments.

The authorities are acting with determination to limit the spread of the virus and its effects on the economic and social plan. They have implemented solid measures for the containment and mitigation of the crisis, and increase spending to strengthen their intervention in the health field. Additional measures currently under consideration will help to support households and businesses vulnerable.

Given the sudden and compelling need of shocks, implementation of monetary and fiscal policies accommodative to mitigate the impact of the epidemic on economic and human is justified. The authorities, however, remain attached to the programme of reforms set out in the framework of the agreement under the extended credit facility (ECF). They plan to make adjustments to get back on track of fiscal consolidation once the crisis has passed, in order to preserve debt sustainability and ensure a strong recovery.

The emergency financing from the IMF under the RCF will help the government to mitigate the impact of the double shock. It will be essential to obtain additional support from development partners to meet the financing needs remaining. It will also be necessary to ensure that a budgetary control to be rigorous and to demonstrate transparency to ensure that aid granted under the FCR allows to achieve the desired objectives. “

Additional information

Tracking tool of the IMF loans (requests for emergency funding approved by the board of directors of the IMF)

Calendar of the board of directors of the IMF

Communications department of the IMF

PRESS secretary: Lucie Mboto Fouda

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure is not be perfect.

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