By signing a loan of $ 666.2 million on Monday with the International Monetary Fund (IMF), Yaoundé is committed to the “Extended Credit Facility” program, which requires more transparency and rigor in public spending.
On June 26, 2017, the Executive Committee of the International Monetary Fund (IMF) approved a three-year program called “Extended Credit Facility” with Cameroon for approximately $ 666.2 million. $ 171.3 million is being provided immediately to support the country’s economic and financial reform program. According to the newspaper Quotidien de l’Economie published on 28 June 2017, the remaining amount will be released gradually over the duration of the program after semi-annual reviews.
After the discussion of the IMF Executive Committee on Cameroon, Mitsuhiro Furusawa, Deputy Managing Director of the Fund said: “Cameroon has been hit hard by both the price of oil and the security shocks that have affected the CEMAC region since 2014 and which led to a sharp decline in international reserves. Having initially shown resistance through diversification, the Cameroonian economy is now facing slower growth, lower fiscal and external buffers and rapidly rising public debt.
According to Mitsuhiro, the three-year program of the Fund’s authorities aims adequately to address Cameroon’s large balance of payments deficit and to restore fiscal and external solidarity by contributing to the collective effort to rebuild regional reserves . Mitsuhiro Furusawa continued: “Addressing emerging fiscal and external imbalances requires sustainable and balanced fiscal consolidation based on expanding non-oil revenue, prioritizing public investment projects with demonstrated growth dividends, and rationalization of recurrent expenditure, by protecting social expenditure “.
According to the deputy director of the IMF, the Cameroonian authorities have made a commitment to improve the country’s competitiveness and medium-term growth potential, in line with their strategy to achieve emerging country status by 2035. “The success of Cameroon’s program will also depend on the implementation of support policies and reforms by regional institutions,” Mitsuhiro concluded.