Abstract
First Review Under the Extended Credit Facility Arrangement Requests for Waiver of Nonobservance of a Performance Criterion and Modification of Performance Criteria-Press Release; Staff Report; Supplementary Information; and Statement by the Executive Director for Cameroon
1. This supplement provides an update on economic and policy developments since the issuance of the staff report on December 13, 2017. The additional information does not change the thrust of the staff appraisal.
2. Staff obtained preliminary data concerning the end-September 2017 indicative targets (ITs) (Update to Attachment 1, Table 1)1. The end-September ITs appear to have all been met.
Cameroon: Quantitative Performance Criteria, Indicative Targets, and Projections, 2017–18
(Billions of CFA francs, cumulative for each fiscal year)
Program indicators under A are performance criteria at end-December and end-June; indicative targets otherwise.
The ceiling on net domestic financing (excluding payment of arrears) of the budget and the ceiling on the net borrowing from the central bank will be adjusted if the amount of disbursements of external budgetary assistance excluding IMF financing, falls short of or exceeds program forecasts. If disbursements are less (higher) than the programmed amounts, the ceiling will be raised (reduced) pro tanto, up to a maximum of CFAF 120 billion at the end of each quarter of 2017.
The targets for 2017 are set from the time of program approval.
Excluding ordinary credit for imports and debt relief obtained in the form of rescheduling or refinancing.
This criterion applies from the date of approval of the program for 2017, and from the beginning of each calendar year thereafter. As of October 17, the Government has signed CFAF 1050 billion of non-concessional borrowing in 2017.
The ceiling will be adjusted upwards by the amount of non-concessional budget support excluding IMF financing for debt management purposes, up to the amounts specified in memorandum item No. 1 below.
On a contracting basis in accordance with the IMF’s debt limits policy: http://www.imf.org/external/np/pp/eng/2014/111414.pdf.
Cameroon: Quantitative Performance Criteria, Indicative Targets, and Projections, 2017–18
(Billions of CFA francs, cumulative for each fiscal year)
| 2017 | 2018 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| End-Mar | End-Jun | End-Sep | End-Dec | End-Mar | End-Jun | End-Sep | End-Dec | ||||||
| PC | Actual | Status | IT | Prel | Status | PC | IT | PC | Proj | Proj | |||
| A. Quantitative performance criteria and indicative targets 1/ | |||||||||||||
| Floor on the non-oil primary fiscal balance (commitment basis) | −61 | −392 | −307 | Met | −708 | −327 | Met | −974 | −53 | −320 | −519 | −777 | |
| Ceiling on the net domestic financing of the central government excluding IMF financing 2/ | −73 | −18 | −79 | Met | 78 | −88 | Met | −200 | −43 | −153 | −76 | 5 | |
| Ceiling on net borrowing of the central government from the central bank excluding IMF financing 2/ | −35 | 0 | −61 | Met | 85 | −4 | Met | −253 | −304 | −403 | −316 | −376 | |
| Ceiling on the disbursement of non-concessional external debt contracted as of the date of program approval | 280 | 205 | Met | 540 | 340 | Met | 540 | 350 | 350 | 596 | 596 | ||
| B. Continuous quantitative performance criteria 3/ | |||||||||||||
| Ceiling on the accumulation of new external payments arrears | 0 | 0 | Met | 0 | 0 | Met | 0 | 0 | 0 | 0 | 0 | ||
| Ceiling on new non-concessional external debt contracted or guaranteed by the government 4/; 5/; 6/ | 100 | 0 | Met | 100 | 101 | Not met | 100 | 436 | 436 | 436 | 436 | ||
| C. Indicative Targets | |||||||||||||
| Floor on non-oil revenue | 599 | 1,185 | 1,231 | Met | 1,811 | 1,822 | Met | 2,457 | 689 | 1,331 | 1,958 | 2,616 | |
| Ceiling on the net accumulation of domestic payment arrears | −115 | 0 | −97 | Met | 0 | −171 | Met | −57 | 0 | 0 | 0 | −146 | |
| Floor on social spending | 253 | 265 | Met | 406 | 417 | Met | 624 | 144 | 288 | 460 | 657 | ||
| Ceiling on direct interventions of SNH | … | 168 | 90 | Met | 168 | 137 | Met | 168 | 156 | 156 | 156 | 156 | |
| Memorandum items: | |||||||||||||
| 1. Cumulative external budget support, excluding IMF (earliest disbursement) | 0 | 0 | 0 | 44 | 0 | 337 | 0 | 131 | 131 | 261 | |||
| 2. New concessional external debt contracted or guaranteed by the government 7/ | 3 | 100 | 0 | 100 | 19 | 100 | 152 | 152 | 152 | 152 | |||
Program indicators under A are performance criteria at end-December and end-June; indicative targets otherwise.
The ceiling on net domestic financing (excluding payment of arrears) of the budget and the ceiling on the net borrowing from the central bank will be adjusted if the amount of disbursements of external budgetary assistance excluding IMF financing, falls short of or exceeds program forecasts. If disbursements are less (higher) than the programmed amounts, the ceiling will be raised (reduced) pro tanto, up to a maximum of CFAF 120 billion at the end of each quarter of 2017.
The targets for 2017 are set from the time of program approval.
Excluding ordinary credit for imports and debt relief obtained in the form of rescheduling or refinancing.
This criterion applies from the date of approval of the program for 2017, and from the beginning of each calendar year thereafter. As of October 17, the Government has signed CFAF 1050 billion of non-concessional borrowing in 2017.
The ceiling will be adjusted upwards by the amount of non-concessional budget support excluding IMF financing for debt management purposes, up to the amounts specified in memorandum item No. 1 below.
On a contracting basis in accordance with the IMF’s debt limits policy: http://www.imf.org/external/np/pp/eng/2014/111414.pdf.
Cameroon: Quantitative Performance Criteria, Indicative Targets, and Projections, 2017–18
(Billions of CFA francs, cumulative for each fiscal year)
| 2017 | 2018 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| End-Mar | End-Jun | End-Sep | End-Dec | End-Mar | End-Jun | End-Sep | End-Dec | ||||||
| PC | Actual | Status | IT | Prel | Status | PC | IT | PC | Proj | Proj | |||
| A. Quantitative performance criteria and indicative targets 1/ | |||||||||||||
| Floor on the non-oil primary fiscal balance (commitment basis) | −61 | −392 | −307 | Met | −708 | −327 | Met | −974 | −53 | −320 | −519 | −777 | |
| Ceiling on the net domestic financing of the central government excluding IMF financing 2/ | −73 | −18 | −79 | Met | 78 | −88 | Met | −200 | −43 | −153 | −76 | 5 | |
| Ceiling on net borrowing of the central government from the central bank excluding IMF financing 2/ | −35 | 0 | −61 | Met | 85 | −4 | Met | −253 | −304 | −403 | −316 | −376 | |
| Ceiling on the disbursement of non-concessional external debt contracted as of the date of program approval | 280 | 205 | Met | 540 | 340 | Met | 540 | 350 | 350 | 596 | 596 | ||
| B. Continuous quantitative performance criteria 3/ | |||||||||||||
| Ceiling on the accumulation of new external payments arrears | 0 | 0 | Met | 0 | 0 | Met | 0 | 0 | 0 | 0 | 0 | ||
| Ceiling on new non-concessional external debt contracted or guaranteed by the government 4/; 5/; 6/ | 100 | 0 | Met | 100 | 101 | Not met | 100 | 436 | 436 | 436 | 436 | ||
| C. Indicative Targets | |||||||||||||
| Floor on non-oil revenue | 599 | 1,185 | 1,231 | Met | 1,811 | 1,822 | Met | 2,457 | 689 | 1,331 | 1,958 | 2,616 | |
| Ceiling on the net accumulation of domestic payment arrears | −115 | 0 | −97 | Met | 0 | −171 | Met | −57 | 0 | 0 | 0 | −146 | |
| Floor on social spending | 253 | 265 | Met | 406 | 417 | Met | 624 | 144 | 288 | 460 | 657 | ||
| Ceiling on direct interventions of SNH | … | 168 | 90 | Met | 168 | 137 | Met | 168 | 156 | 156 | 156 | 156 | |
| Memorandum items: | |||||||||||||
| 1. Cumulative external budget support, excluding IMF (earliest disbursement) | 0 | 0 | 0 | 44 | 0 | 337 | 0 | 131 | 131 | 261 | |||
| 2. New concessional external debt contracted or guaranteed by the government 7/ | 3 | 100 | 0 | 100 | 19 | 100 | 152 | 152 | 152 | 152 | |||
Program indicators under A are performance criteria at end-December and end-June; indicative targets otherwise.
The ceiling on net domestic financing (excluding payment of arrears) of the budget and the ceiling on the net borrowing from the central bank will be adjusted if the amount of disbursements of external budgetary assistance excluding IMF financing, falls short of or exceeds program forecasts. If disbursements are less (higher) than the programmed amounts, the ceiling will be raised (reduced) pro tanto, up to a maximum of CFAF 120 billion at the end of each quarter of 2017.
The targets for 2017 are set from the time of program approval.
Excluding ordinary credit for imports and debt relief obtained in the form of rescheduling or refinancing.
This criterion applies from the date of approval of the program for 2017, and from the beginning of each calendar year thereafter. As of October 17, the Government has signed CFAF 1050 billion of non-concessional borrowing in 2017.
The ceiling will be adjusted upwards by the amount of non-concessional budget support excluding IMF financing for debt management purposes, up to the amounts specified in memorandum item No. 1 below.
On a contracting basis in accordance with the IMF’s debt limits policy: http://www.imf.org/external/np/pp/eng/2014/111414.pdf.
Supplementary Letter of Intent
Yaoundé, December 15, 2017
Ms. Christine Lagarde
Managing Director
International Monetary Fund
Dear Ms. Lagarde,
Further to the Cameroonian authorities’ Letter of Intent of dated December 13th, 2017, we have communicated to staff preliminary information for the program’s end-September indicative targets. This information can be used to update Table 1 (“Quantitative Program Targets, 2017” under the Memorandum of Economic and Financial Policies”).
Sincerely yours,
/s/
Alamine Ousmane Mey
Minister of Finance
The fiscal data is preliminary and subject to further revision. Reconciliation between the fiscal data and monetary data is also preliminary.