International Monetary Fund. Finance Dept., International Monetary Fund. Strategy, Policy, &, and Review Department
This paper reviews the Poverty Reduction and Growth Trust (PRGT) interest rate structure for the period July 2019–June 2021. Since the interest rate mechanism was first established in 2009, no interest has been charged on PRGT credit. In line with the package of reforms proposed in the parallel Review of LIC Facilities, this paper proposes to align interest rates on the SCF with those on the ECF. Based on the average SDR rate over the most recently observed 12-month period, the proposed revised interest rate mechanism would result in zero interest rates on both ECF and SCF credit for the period July 2019–June 2021.
Poverty reduction strategies (PRS) are central to Fund-supported economic and financial programs in low-income countries (LICs). The joint IMF-World Bank’s Heavily Indebted Poor Country (HIPC) Initiative introduced the PRS approach and established documentation requirements centered on the Poverty Reduction Strategy Paper (PRSP). The PRS approach has also been a cornerstone for the Fund’s concessional financing, currently the Extended Credit Facility (ECF), and has been extended to the Policy Support Instruments (PSI), the non-financing instrument for LICs, with PRS documentation serving as the operational framework for development of strategies to promote growth and reduce poverty under Fund-supported programs.
This paper puts forward a package of proposed decisions to implement the Multilateral Debt Relief Initiative (“MDRI”) and establish the Exogenous Shocks Facility within the PRGF Trust; it also provides a Commentary on key aspects of the decisions. The proposed decisions generally reflect the overall structure and modalities that have been identified by the staff and endorsed by Executive Directors in the several meetings held to date concerning the G-8 debt relief proposal/MDRI and ESF.
This paper evaluates Cameroon’s 2002 Article IV Consultation, Third Review Under the Poverty Reduction and Growth Facility (PRGF), and a Request for a Waiver of Performance Criterion. During the first half of the second annual program (October 2001–March 2002), economic activity expanded at a somewhat slower pace than projected, but continued to be strong. Although all the structural benchmarks were observed, the end-March 2002 performance criterion was missed. Good progress continued in implementing policies to strengthen non-oil revenue mobilization, and steps were taken to improve governance.
This paper assesses Cameroon’s Second Review Under the Poverty Reduction and Growth Facility (PRGF) Arrangement and a Request for a Waiver of Performance Criterion. Cameroon’s good record of macroeconomic performance continued during the first annual program (October 2000–September 2001) under the new three-year PRGF arrangement. The structural reform process progressed further—albeit at a slow pace. Progress in implementing structural reforms slowed during the second half of the first annual program. The pace of economic activity was broadly in line with the envisaged real GDP growth of 5.3 percent.
Cameroon’s good record of performance in the macroeconomic and structural areas under the previous three-year Poverty Reduction and Growth Facility (PRGF) arrangement remained broadly satisfactory during the first six months of the first annual program. Progress in structural reforms has continued, notably in the financial, transport, forestry, and petroleum sectors. For the medium term, Executive Directors emphasized the importance of continuing to strengthen the efficiency and transparency of public revenue and expenditure management, and welcomed the authorities’ intention to launch a technical audit of the judicial system.