In a letter signed on June 19 by Prime Minister Philemon Yang, the Cameroonian government asked the International Monetary Fund (IMF) to help Cameroon.
In its edition of July 7, 2017, Le Quotidien de l’Economie published the full letter signed June 19, 2017 by Prime Minister Philemon Yang to the Board of Directors of the International Monetary Fund (IMF).
“Madame Lagarde, Cameroon’s economy suffered the double blow of falling oil prices and security threats in the subregion. It continues to be resilient, particularly because of its diversification, which has allowed the country to maintain robust growth.
However, these external shocks have led to budgetary deterioration due to lower oil revenues combined with an increase in security spending and humanitarian spending related to the influx of refugees from neighboring Cameroon (Nigeria and Central African Republic) countries, internally displaced persons, and food-insecure populations. Moreover, as we are faced with the need for our country to continue to acquire the infrastructure necessary for her development, the public debt has increased considerably, even if it remains sustainable, ” one reads.
In his letter the head of government referred to the external accounts adversely affected by the fall in commodity prices, contributing to the sharp fall in the coverage of the country’s foreign exchange reserves. This requires consolidation based on measures to “increase incomes, rationalize and improve the quality of public spending, especially for spending on priority investments, while preserving certain social and humanitarian aid expenditures, emergency in the North and East of Cameroon, “says Philemon Yang.
“In accordance with the commitments contained in the final communiqué of the Extraordinary Summit of Heads of State of CEMAC of 23 December 2016 in Yaoundé, the Government agreed to take concerted measures with other CEMAC countries and regional institutions to ensure that the policies implemented are compatible with maintaining the fiscal and external viability of the region and the stability of its monetary agreement.
Cameroon’s economic reform program is in line with the objectives of our Growth and Jobs Strategy Paper (GJSP), which aims to reduce poverty and underemployment and accelerate economic growth emerging countries by 2035 “reassured the Cameroonian Prime Minister. Promising to “continue his efforts to provide the country with modern infrastructure capable of attracting private investment while improving the business climate“.
“The Government of Cameroon wishes to request the support of the IMF in its implementation within the framework of a three-year agreement supported by the Extended Credit Facility (ECF) covering the period 2017-20, amounting to 175 Per cent of its quota corresponding to the SDR 483 million (about CFAF 415 billion), which will be disbursed in seven installments, as well as quantitative performance criteria and structural measures until December 2017.
To meet our balance-of-payments financing needs, or about 4.7% of GDP in 2017, and to support our fiscal consolidation effort, we are calling for an initial disbursement of 45% of our quota. “