Despite noting that programme implementations in 2019 had mixed results and faced challenges, The executive board of the International Monetary Fund (IMF) has approved the disbursement of $76.1 million to Cameroon.
The country has been hit by a blob in global oil and commodity prices, which have affected the six-member Central African Economic and Monetary Community (CEMAC) region.
According to the lender, the disbursement, after a fifth review of economic reforms under a three-year agreement known as the Extended Credit Facility (ECF) between the government and the institution, will bring the total amount disbursed under the arrangement to nearly $590 million.
The board has also approved the authorities’ request for a waiver of non-observance of the continuous performance criteria on the non-accumulation of new external payments arrears, based on actions by the Cameroonian government deemed to correct previous failures.
Introduced in June 2017, the ECF, worth $666.1 million aims at supporting Cameroon’s efforts to restore external and fiscal sustainability and to lay the foundations “for a more sustainable, inclusive and private sector-led growth.”
The disbursements are generally approved after mid-term evaluation meetings held after completion of article IV consultations. The article requires that IMF sends a team to the country under review to discuss with policy makers and gather economic and financial information. The report of the team forms the basis of discussions of the board. That was the aim of a visit by a mission from the institution to Yaoundé last October.