Title: IMF agreements strengthen the economic stability of Côte d’Ivoire
Introduction :
The Executive Board of the International Monetary Fund (IMF) recently approved the first reviews of the arrangements under the Extended Credit Facility (ECF) and the Extended Credit Facility (EMDC) for Côte d’Ivoire. This decision paves the way for a second disbursement of nearly $400 million. These agreements demonstrate Côte d’Ivoire’s solid economic performance and the authorities’ commitment to cleaning up public finances and promoting the country’s growth.
A favorable economic context despite global challenges:
Ivory Coast has faced several economic challenges in recent years, including the negative impact of the war in Ukraine and the global climate of monetary tightening. Despite this, the country has maintained resilient growth, estimated at around 6.5% in 2023. Ivorian authorities have implemented fiscal austerity measures and addressed macroeconomic imbalances, which helped reduce the deficit of the current account and the budget deficit compared to the previous year.
The key role of the IMF in the economic stability of Côte d’Ivoire:
The ECF/MEDC agreements with the IMF provide Côte d’Ivoire with crucial financial support to strengthen the country’s economic stability. These agreements are accompanied by structural reforms aimed at improving the business climate and encouraging the participation of the private sector in the country’s development. Domestic revenue mobilization is also a priority, in order to create fiscal space necessary to finance the country’s economic transformation towards upper middle-income country status.
The need to maintain fiscal consolidation and debt management:
To preserve debt sustainability and guarantee long-term economic stability, the Ivorian authorities are committed to continuing fiscal consolidation. This translates into quality and permanent tax policy measures, as well as tax and customs administration reforms. Improving the coverage, transparency and management of public finances is also a priority, particularly for public enterprises.
Conclusion :
The FEC/MEDC agreements between Côte d’Ivoire and the IMF mark an important step in consolidating the country’s economic stability. By committing to implementing structural reforms and consolidating public finances, Côte d’Ivoire is showing its determination to maintain solid growth and preserve the sustainability of its debt. These measures will help to strengthen the country’s attractiveness for investments and promote long-term economic development.