IMF and Ivory Coast reach staff-level-agreement on a $3.5 billion EFF/ECF arrangement

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The () staff team has reached a staff-level agreement with the Ivorian authorities on economic policies and reforms to be supported by a new 40-month arrangement of about $3.5 billion under the Extended Fund Facility (EFF)/Extended Credit Facility (ECF).

The -supported program would aim to preserve fiscal and debt sustainability and advance the authorities' reform agenda for deeper economic transformation under the 2021-25 National Development Plan. The authorities have taken measures to strengthen macroeconomic stability and reverse widening fiscal and external imbalances as the economy has been hit hard by the triple shock of the pandemic, global financial tightening, and adverse spillovers from 's war in .

The final program arrangement is subject to approval by the IMF's Executive Board.

During a visit to Abidjan from March 1-14, the IMF staff team led by Mr Olaf Unteroberdoerster agreed with the Ivorian authorities on all policy objectives and reforms for an economic reform program that could be supported by an IMF financial arrangement. A staff-level agreement has now been reached, including on the level of access to Fund resources of 400 per cent of quota (equivalent to about US$ 3.5 billion) under the EFF/ECF.

“The Ivorian economy proved resilient to the pandemic, but the economic rebound has softened in the face of adverse spillovers from 's war in and global monetary tightening. Indirect and direct subsidies to curb price pressures, higher security spending, and worsening terms-of-trade amid robust domestic demand have led to a widening of macroeconomic imbalances in 2022,” said Mr Unteroberdoerster in a statement.

“Against this challenging backdrop, the authorities have requested Fund support under a blended EFF/ECF arrangement for their economic program. It aims to preserve fiscal and debt sustainability and anchor the 2021-25 National Development Plan (NDP) in key structural priorities to promote more inclusive growth led by the private sector and facilitate Côte d'Ivoire's transition towards a middle-income country.”

The IMF team also met with Vice President Tiémoko Koné, Prime Minister Patrick Achi, Minister of State and Agriculture Kobenan Adjoumani, Minister of Planning and Development Nialé Kaba, Minister of Petroleum, Mines and Energy Sangafowa Coulibaly, Minister of Economy and Finance Adama Coulibaly, Minister of Budget and State Holdings Moussa Sanogo, Minister of Commerce and Industry Souleymane Diarrassouba, Minister and Secretary General of the Abdourahmane Cissé, and other senior government and BCEAO officials, as well as representatives of the business and donor communities.

The program aims to help Côte d'Ivoire build a more prosperous and inclusive society amid rapid demographic change and significant external challenges. The IMF team fully supports the authorities' reform agenda and welcomes their deep commitment to fiscal and debt sustainability.

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