Central African Republic: 2018 Article IV Consultation, Fifth Review Under the Extended Credit Facility Arrangement, and Financing Assurances Review—Informational Annex

2018 Article IV Consultation, Fifth Review under the Extended Credit Facility Arrangement, and Financing Assurances Review

Abstract

2018 Article IV Consultation, Fifth Review under the Extended Credit Facility Arrangement, and Financing Assurances Review

Relations with the Fund

(As of October 31, 2018)

Membership Status: Joined: 07/10/1963. C.A.R. is an Article VIII member of the Fund.

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Latest Financial Arrangements:

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Projected Payments to Fund:

(SDR million; based on existing use of resources and present holdings of SDRs):

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Implementation of Catastrophe Containment and Relief (CCR): Not applicable

As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

Safeguards Assessments

The Bank of the Central African State (BEAC) is the regional central bank of the Central African Economic and Monetary Community (CEMAC). A full safeguards assessment (SA) under the periodic four-year cycle for regional central banks was completed in August 2017. The BEAC continues to implement the remaining recommendations of the 2017 safeguards assessment. BEAC’s full transition to IFRS is progressing broadly as planned, and steps are being taken to accelerate the adoption of revisions to the secondary legal instruments to align these with the BEAC Charter, in consultation with IMF staff.

Exchange Rate Arrangement

The de jure exchange rate of the Central African Monetary Union (CAMU) is a conventional peg. C.A.R. participates in the CAMU and has no separate legal tender. C.A.R.’s currency is the CFA Franc which, since January 1, 1999, is pegged to the euro at the rate of EUR 1 = CFAF 655.957. C.A.R. maintains an exchange system that is free from restrictions and multiple currency practices on payments and transfers for current international transactions.

Article IV Consultations

The C.A.R. is currently on the standard 24-month cycle for Article IV consultations for program countries. The last Article IV consultation was concluded on July 20, 2016.

Resident Representative

Olivier Benon since September 2016

Table 1.

Central African Republic: Fund Technical Assistance

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Work Program with Partner Institution

The Fund and partner institutions collaborate closely. Staff from the World Bank and other development institutions regularly participate in IMF missions. The World Bank’s analysis and advice on structural reforms and reducing poverty informs the Fund’s recommendations. The Fund coordinates its capacity building and technical assistance with development partners and there are regular meetings in Bangui. The World Bank and the Fund participate in monthly meetings of the treasury committee.

The World Bank work program can be found on the following website:

http://www.worldbank.org/en/country/centralafricanrepublic

The African Development Bank work program can be found on the following website: https://www.afdb.org/en/countries/central-africa/central-african-republic/

Statistical Issues

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Table 1.

Central African Republic: Common Indicators Required for Surveillance

(As of November 2018)

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Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

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.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).

26

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.

27

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.

28

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.

Central African Republic: 2018 Article IV Consultation, Fifth Review under the Extended Credit Facility Arrangement, and Financing Assurances Review
Author: International Monetary Fund. African Dept.