Abstract
Staff Report for the 2018 Article IV Consultation and Third Reviews Under the Arrangement Under the Extended Credit Facility and Extended Arrangement Under the Extended Fund Facility, and Request for Modification of a Performance Criterion
1. This supplement provides an update on developments since the issuance of the staff report on June 4, 2018. The additional information does not change the thrust of the staff appraisal.
2. Recent indicators confirm robust growth with contained inflation. Domestic electricity consumption, import volumes, and industrial production have picked up in the first quarter of 2018. CPI inflation remains low, at 0.6 percent (y/y) at end-March 2018.
3. According to preliminary data, two out of four structural benchmarks (SBs) and nine out of ten quantitative indicative targets (ITs) for end-March 2018 were met (Tables 1 and 2). The authorities prepared the action plan to improve the tracking of merchandise in transit and produced a summary table of public enterprises’ debt service. However, government contribution for the recapitalization of the public savings bank CNCE was not paid because of delays in processing payments orders. A partial payment has been made, and the authorities are making arrangements to transfer the remaining balance in the period ahead. The SB on preserving fuel tax revenue and IT on government tax revenue were not met, reflecting the lower revenue projections for 2018. This reinforces the importance of accelerated revenue administration and additional tax policy measures as envisaged under the program. Staff supported the authorities’ request for the downward revision of the relevant indicators from end-June 2018, but the indicators for end-March 2018 could not be revised retroactively. Retail fuel prices were increased by about 1 percent in April and about 2 percent in May 2018.
Côte d’Ivoire: Indicative Targets (IT) for end-March 20181/
(Billions of CFA francs, unless otherwise indicated)
Cumulative amount from January 1, 2018 for 2018 targets.
Côte d’Ivoire: Indicative Targets (IT) for end-March 20181/
(Billions of CFA francs, unless otherwise indicated)
| 2018 | ||||
|---|---|---|---|---|
| March | ||||
| IT | Est. | Status | ||
| A. Performance criteria | ||||
| Floor on the overall fiscal balance (incl. grants) | −171.2 | −77.6 | MET | |
| Ceiling on net domestic financing (incl. WAEMU paper) | 167.1 | −1,061.6 | MET | |
| Ceiling on the present value of new external debt contracted by the central government ($ million) | … | … | … | |
| Ceiling on accumulation of new external arrears by the central government (continuous basis) | ||||
| Ceiling on accumulation of new domestic arrears by the central government (continuous basis) | ||||
| B. Indicative targets | ||||
| Floor on government tax revenue | 878.8 | 844.8 | ||
| Ceiling on expenditures by treasury advance | 39.3 | 5.2 | MET | |
| Floor on pro-poor expenditure | 411.0 | 520.3 | MET | |
| Floor on net reduction of central government amounts payable (- = reduction) | −112.2 | −112.5 | MET | |
| Floor on primary basic fiscal balance | 44.4 | 120.2 | MET | |
| Memorandum items: | ||||
| Program grants | 0.0 | 0.0 | ||
| Program loans | 0.0 | 0.0 | ||
| Project grants | 58.4 | 33.5 | ||
| Project loans | 144.2 | 140.7 | ||
| Budget support from the European Union, World Bank, and African Development Bank | 0.0 | 0.0 | ||
| Fuel tax revenues | 102.9 | 95.2 | ||
Cumulative amount from January 1, 2018 for 2018 targets.
Côte d’Ivoire: Indicative Targets (IT) for end-March 20181/
(Billions of CFA francs, unless otherwise indicated)
| 2018 | ||||
|---|---|---|---|---|
| March | ||||
| IT | Est. | Status | ||
| A. Performance criteria | ||||
| Floor on the overall fiscal balance (incl. grants) | −171.2 | −77.6 | MET | |
| Ceiling on net domestic financing (incl. WAEMU paper) | 167.1 | −1,061.6 | MET | |
| Ceiling on the present value of new external debt contracted by the central government ($ million) | … | … | … | |
| Ceiling on accumulation of new external arrears by the central government (continuous basis) | ||||
| Ceiling on accumulation of new domestic arrears by the central government (continuous basis) | ||||
| B. Indicative targets | ||||
| Floor on government tax revenue | 878.8 | 844.8 | ||
| Ceiling on expenditures by treasury advance | 39.3 | 5.2 | MET | |
| Floor on pro-poor expenditure | 411.0 | 520.3 | MET | |
| Floor on net reduction of central government amounts payable (- = reduction) | −112.2 | −112.5 | MET | |
| Floor on primary basic fiscal balance | 44.4 | 120.2 | MET | |
| Memorandum items: | ||||
| Program grants | 0.0 | 0.0 | ||
| Program loans | 0.0 | 0.0 | ||
| Project grants | 58.4 | 33.5 | ||
| Project loans | 144.2 | 140.7 | ||
| Budget support from the European Union, World Bank, and African Development Bank | 0.0 | 0.0 | ||
| Fuel tax revenues | 102.9 | 95.2 | ||
Cumulative amount from January 1, 2018 for 2018 targets.
Côte d’Ivoire: Structural Benchmarks for end-March 20181
See memorandum item “fuel tax revenues” in Table 1.
Côte d’Ivoire: Structural Benchmarks for end-March 20181
| Measures | Timetable | Macroeconomic Rationale | Documentation |
|---|---|---|---|
| Price Adjustment Mechanism | |||
| Apply the retail fuel price mechanism to preserve fuel tax revenue at a level not below the level in the supplementary budget law.1 | SB quarterly | Improve budget revenue | Inter-ministerial decree |
| Tax Policy and Administration | |||
| Prepare action plan to improve tracking of merchandise in transit. | SB for end-March 2018 | Improve collection of customs duties and fees | Action plan |
| Public Debt Management | |||
| By the end of each quarter produce a summary table of public enterprise debt service in the previous quarter based on progress in the data availability. | SB quarterly, starting from end-June 2017 | Enhance monitoring of debt service by public enterprises | Summary debt service table |
| Financial Sector | |||
| Pay the remainder of government contribution for the recapitalization of the Caisse Nationale des Caisses d’Épargne (CNCE). | SB end-March 2018 | Strengthen the banking system and promote financial inclusion | Budget execution report |
See memorandum item “fuel tax revenues” in Table 1.
Côte d’Ivoire: Structural Benchmarks for end-March 20181
| Measures | Timetable | Macroeconomic Rationale | Documentation |
|---|---|---|---|
| Price Adjustment Mechanism | |||
| Apply the retail fuel price mechanism to preserve fuel tax revenue at a level not below the level in the supplementary budget law.1 | SB quarterly | Improve budget revenue | Inter-ministerial decree |
| Tax Policy and Administration | |||
| Prepare action plan to improve tracking of merchandise in transit. | SB for end-March 2018 | Improve collection of customs duties and fees | Action plan |
| Public Debt Management | |||
| By the end of each quarter produce a summary table of public enterprise debt service in the previous quarter based on progress in the data availability. | SB quarterly, starting from end-June 2017 | Enhance monitoring of debt service by public enterprises | Summary debt service table |
| Financial Sector | |||
| Pay the remainder of government contribution for the recapitalization of the Caisse Nationale des Caisses d’Épargne (CNCE). | SB end-March 2018 | Strengthen the banking system and promote financial inclusion | Budget execution report |
See memorandum item “fuel tax revenues” in Table 1.