Abstract
In this study, Cameroon’s economic recovery, low inflation, and positive economic prospects have been ascribed. Efforts to improve non-oil revenue by broadening the tax base, streamlining exemptions, and increasing the efficiency of tax and customs administration are outlined. The need to rebuild fiscal buffers, strengthen the budget execution process, and accelerate efforts to operationalize the medium-term expenditure framework are emphasized. The importance of redoubling efforts to address the severe infrastructure gap and improve the business climate and competitiveness are also provided.
I. Relations with the Fund
(As of April 30, 2011)
I. Membership Status: Joined: July 10, 1963; Article VIII
II. General Resources Account:
| SDR Million | %Quota | |
| Quota | 185.70 | 100.00 |
| Fund Holdings of Currency | 184.83 | 99.53 |
| Reserve Tranche Position | 0.87 | 0.47 |
| Lending to the Fund | ||
| Notes Issuance | ||
| Holdings Exchange Rate |
| SDR Million | %Quota | |
| Quota | 185.70 | 100.00 |
| Fund Holdings of Currency | 184.83 | 99.53 |
| Reserve Tranche Position | 0.87 | 0.47 |
| Lending to the Fund | ||
| Notes Issuance | ||
| Holdings Exchange Rate |
III. SDR Department:
| SDR Million | %Allocation | |
| Net cumulative allocation | 177.27 | 100.00 |
| Holdings | 17.23 | 9.72 |
| SDR Million | %Allocation | |
| Net cumulative allocation | 177.27 | 100.00 |
| Holdings | 17.23 | 9.72 |
IV. Outstanding Purchases and Loans:
| SDR Million | %Quota | |
| ESF RAC Loan | 92.85 | 50.00 |
| ECF Arrangements | 18.31 | 9.86 |
| SDR Million | %Quota | |
| ESF RAC Loan | 92.85 | 50.00 |
| ECF Arrangements | 18.31 | 9.86 |
V. Latest Financial Arrangements:
Formerly PRGF.
VI. Projected Payments to Fund 2
(SDR Million; based on existing use of resources and present holdings of SDRs):
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | ||||||
|---|---|---|---|---|---|---|
| 2011 | 2012 | 2013 | 2014 | 2015 | ||
| Principal | 0.53 | 1.59 | 2.39 | 3.45 | 22.28 | |
| Charges/Interest | 0.61 | 1.14 | 1.14 | 1. 13 | 1.09 | |
| Total | 1.14 | 2.73 | 3.52 | 4.58 | 23.37 | |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | ||||||
|---|---|---|---|---|---|---|
| 2011 | 2012 | 2013 | 2014 | 2015 | ||
| Principal | 0.53 | 1.59 | 2.39 | 3.45 | 22.28 | |
| Charges/Interest | 0.61 | 1.14 | 1.14 | 1. 13 | 1.09 | |
| Total | 1.14 | 2.73 | 3.52 | 4.58 | 23.37 | |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
VII. Implementation of HIPC Initiative:
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
| I. Commitment of HIPC assistance | Enhanced Framework | ||||
|---|---|---|---|---|---|
| Decision point date | Oct 2000 | ||||
| Assistance committed | |||||
| by all creditors (US$ million)1 | 1,267.00 | ||||
| Of which: IMF assistance (US$ million) | 37.04 | ||||
| (SDR equivalent in millions) | 28.62 | ||||
| Completion point date | April 2006 | ||||
| II. Disbursement of IMF assistance (SDR million) | |||||
| Assistance disbursed to the member | 28.62 | ||||
| Interim assistance | 11.25 | ||||
| Completion point balance | 17.37 | ||||
| Additional disbursement of interest income2 | 5.05 | ||||
| Total disbursements | 33.67 | ||||
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
| I. Commitment of HIPC assistance | Enhanced Framework | ||||
|---|---|---|---|---|---|
| Decision point date | Oct 2000 | ||||
| Assistance committed | |||||
| by all creditors (US$ million)1 | 1,267.00 | ||||
| Of which: IMF assistance (US$ million) | 37.04 | ||||
| (SDR equivalent in millions) | 28.62 | ||||
| Completion point date | April 2006 | ||||
| II. Disbursement of IMF assistance (SDR million) | |||||
| Assistance disbursed to the member | 28.62 | ||||
| Interim assistance | 11.25 | ||||
| Completion point balance | 17.37 | ||||
| Additional disbursement of interest income2 | 5.05 | ||||
| Total disbursements | 33.67 | ||||
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
VIII. Implementation of Multilateral Debt Relief Initiative (MDRI):
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
| I. MDRI-eligible debt (SDR million)1 | 173.26 | |||||
| Financed by: MDRI Trust | 149.17 | |||||
| Remaining HIPC resources | 24.09 | |||||
| II. Debt relief by facility (SDR million) | ||||||
| Eligible Debt | ||||||
| Delivery | ||||||
| Date | GRA | PRGT | Total | |||
| April 2006 | N/A | 173.26 | 173.26 | |||
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
| I. MDRI-eligible debt (SDR million)1 | 173.26 | |||||
| Financed by: MDRI Trust | 149.17 | |||||
| Remaining HIPC resources | 24.09 | |||||
| II. Debt relief by facility (SDR million) | ||||||
| Eligible Debt | ||||||
| Delivery | ||||||
| Date | GRA | PRGT | Total | |||
| April 2006 | N/A | 173.26 | 173.26 | |||
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
Decision point - point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.
Interim assistance - amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).
Completion point - point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).
IX. Safeguards Assessments:
The Bank of the Central African States (BEAC) is the regional central bank of the Central African States. The most recent safeguards assessment of the BEAC was completed on July 6, 2009. The findings of this assessment indicated that implementation of previous safeguards recommendations on financial reporting, internal audit, and internal control was limited, and that the changing risk profile of BEAC foreign exchange holdings required further actions to strengthen safeguards at BEAC. Subsequent to revelation of Paris office fraud, a series of measures and longer term safeguard measures were agreed between the IMF and BEAC in order to continue with country programs. Consequently, BEAC adopted an action plan for 2010 with the aims of reforming its governance and strengthening key safeguards. Implementation of the action plan is ongoing, and BEAC is adopting additional measures to address the weaknesses highlighted by the special audit on headquarters operations.
X. Exchange Arrangements:
Cameroon participates in a currency union with five other members of the CEMAC and has no separate legal tender. Cameroon’s currency, the CFA franc, is pegged to the euro at the fixed rate of CFAF 655.957 per euro. Local currency equivalent: CFAF 735.39=SDR 1, as of May 26, 2011. Effective January 1, 2007, the exchange arrangement of the CEMAC countries has been reclassified to the category of conventional pegged arrangement from the category of exchange arrangement with no separate legal tender. The new classification is based on the behavior of the common currency, whereas the previous classification was based on the lack of a separate legal tender. The new classification thus reflects only a definitional change, and is not based on a judgment that there has been a substantive change in the exchange regime or other policies of the currency union or its members. Cameroon maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions, except for restrictions maintained for security reasons that have been notified to the Fund pursuant to Executive Board decision 144-152/51.
XI. Article IV Consultation:
The last Article IV consultation with Cameroon was concluded by the Executive Board on July 14, 2010.
An Article IV consultation mission visited Cameroon during March 16-31, 2011.
XII. FSAP Participation and ROSCs:
A Financial System Stability Assessment (FSSA) report was issued in May 2000. An update of the FSSA was completed in February 2009, based on the work of a joint IMF-World Bank mission that visited Cameroon as part of the Financial Sector Assessment Program (FSAP) in June 2007, itself building upon the Central African Economic and Monetary Community (CEMAC) regional FSAP that was conducted in 2006.
The first Report on the Observance of Standards and Codes (ROSC) on fiscal transparency and transparency of monetary and financial policies for Cameroon was issued in June 2000. A fiscal ROSC reassessment mission visited Yaoundé, Cameroon during May 6-18, 2009. Its report was issued in June 2010.
XIII. Technical Assistance:
2011
April 2011: STA mission on national account statistics
March 2011: FAD mission on tax administration diagnostic
January 2011: FAD mission on PFM
2010
November 2010: STA mission on quarterly national account
November 2010: FAD mission on implementation of the new budget law
October 2010: AFRITAC mission on PFM (incl. Procurement Plan)
September 2010: FAD mission on tax administration peripatetic
August 2010: AFRITAC mission on public financial management (TOFE)
June 2010: FAD mission on implementation of the new budget law
May 2010: AFRITAC mission on tax administration
April 2010: FAD and AFRITAC Central mission on implementation of the Organic Budget Law
2009
December 2009: STA mission on national account statistics
September 2009: FAD mission on strengthening revenue administration
September 2009: AFRITAC Central mission on strengthening treasury management
February 2009: FAD mission on strengthening revenue administration
July 2009: MCM mission on public debt management
XIV. Resident Representative:
The post of IMF Resident Representative has been maintained in Yaoundé continuously since 1989. The current Resident Representative, Mr. Ekué G. Kpodar, has been in his post since August 10, 2009.
II. Bank-Fund Joint Managerial Action Plan, 2011–12
| Products | Mission timing | Expected delivery |
|---|---|---|
| A. Mutual Information on Relevant Work Programs | ||
| The Fund work program | ||
| Strategy: Fund’s policy advice and technical assistance will focus on helping Cameroon preserve fiscal sustainability and economic stability, while expanding priority spending to accelerate growth and poverty reduction. | ||
| 2011 Article IV consultation | March 2011 | Board discussion in June 2011 |
| Staff visit | September 2011 | Aide-mémoire at the end of the mission |
| 2012 Article IV consultation | March 2012 | Board discussion in June 2012 |
| TA to be offered by FAD/AFRITAC | ||
| TBD | Aide-mémoire at the end of the mission |
| TBD | Aide-mémoire at the end of the mission |
| TBD | Aide-mémoire at the end of the mission |
| TBD | Aide-mémoire at the end of the mission |
| TA to be offered by STA | ||
| TBD | Aide-mémoire at the end of the mission |
| TA to be offered by MCM | ||
| TBD | Aide-mémoire at the end of the mission |
| The World Bank program | ||
| Strategy: The new Country Assistance Strategy will aim at improving governance and accelerating growth. The World Bank will help to stimulate growth by improving the competitiveness through (i) increased infrastructure investment in the energy, transport, and telecommunications sectors; (ii) activities geared toward ensuring the transparent, equitable, and sustainable use of natural resources; and (iii) promotion of high potential value chains and improved business climate. It will also focus on service delivery with a particular emphasis on (i) human development (education, health); (ii) social protection, to help develop an effective safety net system based on targeted programs; and (iii) local development, where the focus will be on increasing access to basic services through infrastructure upgrading and capacity building for improved local governance. | ||
| Competitive value chains | Two missions (May and October 2011) | Aide-mémoire at the end of the mission |
| Cross-border trade—analytical work | TBD | Report |
| Transparency and accountability capacity building: TA and policy dialogue | Possibly three missions by end-2011: dates to be decided | Aide-mémoire at the end of the mission |
| Political economy analysis of mining, telecom, and fisheries - analytical work | TBD | Report, round-table discussions |
| Fiscal decentralization | TBD | |
| Debt management capacity | Mission in April, 2011 | Aide-mémoire |
| Country Health Status | TBD | Report |
| Governance diagnosis of local health delivery | TBD | Report |
| B. Requests for work program inputs | ||
| Fund request to Bank | ||
| Periodic update on World Bank program in Cameroon | ||
| Periodic economic update | ||
| Bank request to Fund | ||
| Periodic update of the macroframework | ||
| C. Agreement on joint products and missions | ||
| DSA update | March-April 2011 | Board discussion in June 2011 |
| DSA update | March-April 2012 | Board discussion in June 2012 |
| Products | Mission timing | Expected delivery |
|---|---|---|
| A. Mutual Information on Relevant Work Programs | ||
| The Fund work program | ||
| Strategy: Fund’s policy advice and technical assistance will focus on helping Cameroon preserve fiscal sustainability and economic stability, while expanding priority spending to accelerate growth and poverty reduction. | ||
| 2011 Article IV consultation | March 2011 | Board discussion in June 2011 |
| Staff visit | September 2011 | Aide-mémoire at the end of the mission |
| 2012 Article IV consultation | March 2012 | Board discussion in June 2012 |
| TA to be offered by FAD/AFRITAC | ||
| TBD | Aide-mémoire at the end of the mission |
| TBD | Aide-mémoire at the end of the mission |
| TBD | Aide-mémoire at the end of the mission |
| TBD | Aide-mémoire at the end of the mission |
| TA to be offered by STA | ||
| TBD | Aide-mémoire at the end of the mission |
| TA to be offered by MCM | ||
| TBD | Aide-mémoire at the end of the mission |
| The World Bank program | ||
| Strategy: The new Country Assistance Strategy will aim at improving governance and accelerating growth. The World Bank will help to stimulate growth by improving the competitiveness through (i) increased infrastructure investment in the energy, transport, and telecommunications sectors; (ii) activities geared toward ensuring the transparent, equitable, and sustainable use of natural resources; and (iii) promotion of high potential value chains and improved business climate. It will also focus on service delivery with a particular emphasis on (i) human development (education, health); (ii) social protection, to help develop an effective safety net system based on targeted programs; and (iii) local development, where the focus will be on increasing access to basic services through infrastructure upgrading and capacity building for improved local governance. | ||
| Competitive value chains | Two missions (May and October 2011) | Aide-mémoire at the end of the mission |
| Cross-border trade—analytical work | TBD | Report |
| Transparency and accountability capacity building: TA and policy dialogue | Possibly three missions by end-2011: dates to be decided | Aide-mémoire at the end of the mission |
| Political economy analysis of mining, telecom, and fisheries - analytical work | TBD | Report, round-table discussions |
| Fiscal decentralization | TBD | |
| Debt management capacity | Mission in April, 2011 | Aide-mémoire |
| Country Health Status | TBD | Report |
| Governance diagnosis of local health delivery | TBD | Report |
| B. Requests for work program inputs | ||
| Fund request to Bank | ||
| Periodic update on World Bank program in Cameroon | ||
| Periodic economic update | ||
| Bank request to Fund | ||
| Periodic update of the macroframework | ||
| C. Agreement on joint products and missions | ||
| DSA update | March-April 2011 | Board discussion in June 2011 |
| DSA update | March-April 2012 | Board discussion in June 2012 |
III. Table of Common Indicators Required for Surveillance
(As of May 31, 2011)
Monthly (M), Quarterly (Q), Annually (A), and Not Available (NA).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Goods only, data on trade in services are not available.
| Date of latest observation | Date received | Frequency of data1 | Frequency of reporting1 | Frequency of publication1 | |
|---|---|---|---|---|---|
| Exchange rates | April 2011 | April 2011 | M | M | M |
| International reserve assets and reserve liabilities of the monetary authorities2 | Dec. 2010 | April 2011 | M | M | M |
| Reserve/Base money | Dec. 2010 | April 2011 | M | M | M |
| Broad money | Dec. 2010 | April 2011 | M | M | M |
| Central bank balance sheet | Dec. 2010 | April 2011 | M | M | M |
| Consolidated balance sheet of the banking system | Dec. 2010 | April 2011 | M | M | M |
| Interest rates3 | May 2011 | May 2011 | M | M | M |
| Consumer price index (main cities) | February 2011 | April 2011 | M | M | M |
| Consumer price index (national) | Dec. 2011 | March 2011 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of financing4- General government5 | NA | NA | NA | NA | NA |
| Revenue, Expenditure, Balance and Composition of financing4- Central government | February 2011 | May 2011 | M | M | Partial data published monthly |
| Stocks of central government and Central government-guaranteed debt6 | Dec. 2010 | March 2011 | M | M | M |
| External current account balance | 2010 | March 2011 | A | A | NA |
| Exports and imports of goods and services7 | Dec. 2010 | March 2011 | M | M | NA |
| GDP/GNP | Dec. 2010 | March 2011 | A | A | NA |
| Gross external debt | Dec. 2010 | March 2011 | A | A | A |
| International investment position | NA | NA | NA | NA | NA |
Monthly (M), Quarterly (Q), Annually (A), and Not Available (NA).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Goods only, data on trade in services are not available.
| Date of latest observation | Date received | Frequency of data1 | Frequency of reporting1 | Frequency of publication1 | |
|---|---|---|---|---|---|
| Exchange rates | April 2011 | April 2011 | M | M | M |
| International reserve assets and reserve liabilities of the monetary authorities2 | Dec. 2010 | April 2011 | M | M | M |
| Reserve/Base money | Dec. 2010 | April 2011 | M | M | M |
| Broad money | Dec. 2010 | April 2011 | M | M | M |
| Central bank balance sheet | Dec. 2010 | April 2011 | M | M | M |
| Consolidated balance sheet of the banking system | Dec. 2010 | April 2011 | M | M | M |
| Interest rates3 | May 2011 | May 2011 | M | M | M |
| Consumer price index (main cities) | February 2011 | April 2011 | M | M | M |
| Consumer price index (national) | Dec. 2011 | March 2011 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of financing4- General government5 | NA | NA | NA | NA | NA |
| Revenue, Expenditure, Balance and Composition of financing4- Central government | February 2011 | May 2011 | M | M | Partial data published monthly |
| Stocks of central government and Central government-guaranteed debt6 | Dec. 2010 | March 2011 | M | M | M |
| External current account balance | 2010 | March 2011 | A | A | NA |
| Exports and imports of goods and services7 | Dec. 2010 | March 2011 | M | M | NA |
| GDP/GNP | Dec. 2010 | March 2011 | A | A | NA |
| Gross external debt | Dec. 2010 | March 2011 | A | A | A |
| International investment position | NA | NA | NA | NA | NA |
Monthly (M), Quarterly (Q), Annually (A), and Not Available (NA).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Goods only, data on trade in services are not available.