Abstract
2018 Article IV Consultation; First Review Under the Extended Credit Facility Arrangement; Request for Waiver for Nonobservance of a Performance Criterion, and Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Burkina Faso
Fund Relations
(As of October 31, 2018)
Membership Status: Joined: May 02, 1963; Article VIII
| General Resources Account: | ||
| SDR Million | %Quota | |
| Quota | 120.40 | 100.00 |
| IMF’s Holdings of Currency (Holdings Rate) | 97.46 | 80.95 |
| Reserve Tranche Position | 22.98 | 19.09 |
| SDR Department: | ||
| SDR Million | %Allocation | |
| Net cumulative allocation | 57.58 | 100.00 |
| Holdings | 14.21 | 24.67 |
| Outstanding Purchases and Loans: | ||
| SDR Million | %Quota | |
| ECF Arrangements | 146.64 | 121.80 |
| General Resources Account: | ||
| SDR Million | %Quota | |
| Quota | 120.40 | 100.00 |
| IMF’s Holdings of Currency (Holdings Rate) | 97.46 | 80.95 |
| Reserve Tranche Position | 22.98 | 19.09 |
| SDR Department: | ||
| SDR Million | %Allocation | |
| Net cumulative allocation | 57.58 | 100.00 |
| Holdings | 14.21 | 24.67 |
| Outstanding Purchases and Loans: | ||
| SDR Million | %Quota | |
| ECF Arrangements | 146.64 | 121.80 |
Latest Financial Arrangements:
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | Mar 14, 2018 | Mar 13, 2021 | 108.36 | 18.06 |
| ECF | Dec 27, 2013 | Jul 24, 2017 | 55.64 | 55.64 |
| ECF | Jun 14, 2010 | Dec 23, 2013 | 82.27 | 82.27 |
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | Mar 14, 2018 | Mar 13, 2021 | 108.36 | 18.06 |
| ECF | Dec 27, 2013 | Jul 24, 2017 | 55.64 | 55.64 |
| ECF | Jun 14, 2010 | Dec 23, 2013 | 82.27 | 82.27 |
Overdue Obligations and Projected Payments to Fund 1/
(SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | 10.85 | 23.63 | 19.03 | 21.16 | 18.28 |
| Charges/Interests | 0.11 | 0.45 | 0.45 | 0.45 | 0.45 |
| Total | 10.96 | 24.08 | 19.48 | 21.60 | 18.72 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | 10.85 | 23.63 | 19.03 | 21.16 | 18.28 |
| Charges/Interests | 0.11 | 0.45 | 0.45 | 0.45 | 0.45 |
| Total | 10.96 | 24.08 | 19.48 | 21.60 | 18.72 |
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. Burkina Faso owes a small amount of pre-HIPC Initiative arrears to non-Paris Club creditors which continue to be deemed away under the revised arrears policy for official creditors, as the underlying Paris Club agreement was adequately representative, and the authorities make best efforts to resolve the arrears.
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.
| Original Framework | Enhanced Framework | Total | ||||
|---|---|---|---|---|---|---|
| Commitment of HIPC assistance | ||||||
| Decision point date | Sep 1997 | Jul 2000 | ||||
| Assistance committed by all creditors (US$ Million) 1/ | 229.00 | 324.15 | ||||
| Of which: IMF assistance (US$ million) | 21.70 | 35.88 | ||||
| (SDR equivalent in millions) | 16.30 | 27.67 | ||||
| Completion point date | Jul 2000 | Apr 2002 | ||||
| Disbursement of IMF assistance (SDR Million) | ||||||
| Assistance disbursed to the member | 16.30 | 27.67 | 43.97 | |||
| Interim assistance | 4.15 | 4.15 | ||||
| Completion point balance | 16.30 | 23.52 | 39.82 | |||
| Additional disbursement of interest income 2/ | – | 2.01 | 2.01 | |||
| Total disbursements | 16.30 | 29.68 | 45.98 | |||
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. Burkina Faso owes a small amount of pre-HIPC Initiative arrears to non-Paris Club creditors which continue to be deemed away under the revised arrears policy for official creditors, as the underlying Paris Club agreement was adequately representative, and the authorities make best efforts to resolve the arrears.
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.
| Original Framework | Enhanced Framework | Total | ||||
|---|---|---|---|---|---|---|
| Commitment of HIPC assistance | ||||||
| Decision point date | Sep 1997 | Jul 2000 | ||||
| Assistance committed by all creditors (US$ Million) 1/ | 229.00 | 324.15 | ||||
| Of which: IMF assistance (US$ million) | 21.70 | 35.88 | ||||
| (SDR equivalent in millions) | 16.30 | 27.67 | ||||
| Completion point date | Jul 2000 | Apr 2002 | ||||
| Disbursement of IMF assistance (SDR Million) | ||||||
| Assistance disbursed to the member | 16.30 | 27.67 | 43.97 | |||
| Interim assistance | 4.15 | 4.15 | ||||
| Completion point balance | 16.30 | 23.52 | 39.82 | |||
| Additional disbursement of interest income 2/ | – | 2.01 | 2.01 | |||
| Total disbursements | 16.30 | 29.68 | 45.98 | |||
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. Burkina Faso owes a small amount of pre-HIPC Initiative arrears to non-Paris Club creditors which continue to be deemed away under the revised arrears policy for official creditors, as the underlying Paris Club agreement was adequately representative, and the authorities make best efforts to resolve the arrears.
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.
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.
| MDRI-eligible debt (SDR Million)1/ | 62.12 | ||
| Financed by: MDRI Trust | 57.06 | ||
| Remaining HIPC resources | 5.06 | ||
| Debt Relief by Facility (SDR Million) | |||
| Eligible Debt | |||
| Delivery Date | GRA | PRGT | Total |
| January 2006 | N/A | 62.12 | 62.12 |
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.
| MDRI-eligible debt (SDR Million)1/ | 62.12 | ||
| Financed by: MDRI Trust | 57.06 | ||
| Remaining HIPC resources | 5.06 | ||
| Debt Relief by Facility (SDR Million) | |||
| Eligible Debt | |||
| Delivery Date | GRA | PRGT | Total |
| January 2006 | N/A | 62.12 | 62.12 |
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.
Implementation of Catastrophe Containment and Relief (CCR): Not Applicable
Safeguards Assessments
The Central Bank of West African States (BCEAO) is a common central bank of the countries of the West African Economic and Monetary Union (WAMU). An update safeguards assessment of the BCEAO, completed in April 2018, found that the central bank has maintained a strong control environment since the last assessment in 2013 and its governance arrangements are broadly appropriate. In addition, audit arrangements have been strengthened, International Financial Reporting Standards (IFRS) were adopted as the accounting framework beginning with the 2015 financial statements, and a 2016 external quality review of the internal audit function found broad conformity with international standards. The BCEAO’s risk management framework established in 2014 is also progressing well with implementation of its work across the bank.
Exchange System
Burkina Faso is a member of the West African Economic and Monetary Union (WAEMU); the exchange system, common to all members of the union, is free of restrictions on payments and transfers for current international transactions (as is the exchange system of Burkina Faso). The common currency, the CFA franc, is pegged to the euro at the rate of €1 = CFAF 655.957.
Last Article IV Consultation
Burkina Faso is on a 24-month consultation cycle. The latest Article IV consultation was completed by the Executive Board on December 22, 2016 (Country Report No.16/390).
Technical Assistance
Technical assistance on customs and tax revenue administration, tax policy, wage bill control, management of fiscal risks, public financial management, improvement of budget execution, management of fiscal expenditures, financial reporting, cash flow management, the investment expenditure budgeting and execution systems, government finance statistics, national account statistics, debt management, and macroeconomic programming framework has been provided mainly through AFRITAC West I, FAD, MCM, and STA.
Resident Representative
With the departure of Ms. Mame Astou Diouf in July 2018, there is no resident representative currently in the post.
Relations with Other IFI’s
Relations with other IFIs
World Bank Group
http://projects.worldbank.org/search?lang=en&searchTerm=&countrycode_exact=BF
African Development Bank
AFRITAC Ouest 1
Statistical Issues
A. Assessment of Data Adequacy for Surveillance
General: Data provision has some shortcomings but is broadly adequate for surveillance. The data categories most affected are the national accounts and price statistics. Burkina Faso is receiving technical assistance (TA) from the IMF on an ongoing basis.
National accounts: Annual GDP estimates are compiled by economic activity and by expenditure categories at current and constant prices (1999=100). Quarterly GDP is compiled by economic activity at constant and current prices. An update of the benchmark year for the national accounts is urgent. The authorities are working on updating the base year of the national accounts to 2015 and disseminate the results by the end of 2018. The updated national accounts series will incorporate new data sources, updated methodologies and will address most issues related to the informal sector, gold production, and household consumption. The national accounts estimates are also affected by the scarcity of suitable sources and deficiencies in statistical practices. The main issues include: coverage of the informal sector; private household consumption source data, and validation procedures. The updated household budget-consumption surveys estimates are needed. The quarterly estimates of GDP are being affected by the delays in the compilation of annual estimates.
Price statistics: The CPI (2008=100) only covers African households in the capital; it excludes various types of purchased goods and services, and services of owner-occupied dwellings and prices of unavailable products are presumed unchanged for up to three months rather than imputed from recorded prices changes of closely related products. The producer price index and the wholesale price index are neither compiled nor envisaged due to budgetary constraints.
Government finance statistics: The authorities report revenue, expenditure and financing data in the GFSM 2001/2014 format to STA for the budgetary central government only. The absence of a committee monitoring and coordinating the implementation of the TOFE directive and a high mobility of staff hamper progress. The remaining areas for improvement include mainly the extension of the TOFE coverage to the general government and basing its compilation on the Treasury ledger.
Monetary and financial statistics: Monetary and financial statistics (MFS) are broadly adequate, and their institutional coverage is comprehensive. The dissemination of monthly monetary data from the Central Bank of West African States (BCEAO) takes four to six weeks after the end of the reference period and is consistent with e-GDDS recommendations. In August 2016, the BCEAO completed the migration of Burkina Faso’s MFS to the standardized report forms (SRFs) for the central bank and other depository corporations.
Financial Sector Surveillance: The BCEAO recently finalized the development of FSIs for deposit takers for Burkina Faso. Regular reporting to the IMF’s Statistics Department is expected to begin by December 2018.
Balance of Payments: The informal cross-border trade in goods is not estimated and could be large. Information on remittances should be improved. Consistency between balance of payments (BOP) and international investment position (IIP) should be checked. External debt statistics as reported to QEDS cover only public debt. Under the JSA-funded project, sustained TA on external sector statistics has been provided with a view to improving the quality, scope of data produced as well as the frequency.
B. Data Standards and Quality
Burkina Faso participates in the enhanced General Data Dissemination Standard since December 28, 2001. In September 2018, a data standards mission visited Burkina Faso to assist the authorities in fully implementing the e-GDDS by launching a National Summary Data Page (NSDP). The NSDP is expected to go live by December 5, 2018. The mission was financed by the United Kingdom Department for International Development (DFID). A data ROSC visited Burkina Faso during May 8-21, 2003.
C. Reporting to STA
Balance of payments (BOP): The BCEAO’s National Direction located in Ouagadougou is compiling annual BOP, IIP and CDIS data for Burkina and reporting them to STA. The reported BOP and IIP data are in line with the BPM6 format. Burkina Faso participates in the Coordinated Direct Investment Survey (CDIS) and reports to STA annual direct investment data by partner country. The reported CDIS data are based on an annual survey of transactions, crosschecked with the annual Financial Reports of the companies, as available in BCEAO. The BCEAO does not provide any metadata (describing the methodology used for data collection) in relation to any of the datasets reported to STA.
Government Finances: Since October 2010, annual data and quarterly data covering the budget of the central government are reported to STA for publication in International Financial Statistics and the Government Finance Statistics Yearbook (GFSY). The latest data reported for GSFY 2018 cover 2017.
Burkina Faso: Table of Common Indicators Required for Surveillance
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).
Burkina Faso: Table of Common Indicators Required for Surveillance
| Date of latest observation | Date received | Frequency of data6 | Frequency of reporting7 | Frequency of publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | Current | Current | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 09/2018 | 10/2018 | M | M | M |
| Reserve/Base Money | 09/2018 | 10/2018 | M | M | M |
| Broad Money | 08/2018 | 10/2018 | M | M | M |
| Central Bank Balance Sheet | 09/2018 | 10/2018 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 09/2018 | 10/2018 | M | M | M |
| Interest Rates2 | 3/2016 | 4/2016 | M | M | M |
| Consumer Price Index | 08/2018 | 10/2018 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | 12/2014 | 10/2015 | I | I | I |
| Revenue, Expenditure, Balance and Composition of Financing3 – Central Government | 06/2018 | 10/2018 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 12/2017 | 3/2018 | A | A | A |
| External Current Account Balance | 2016 | 1/2018 | A | A | A |
| Exports and Imports of Goods and Services | 2016 | 1/2018 | A | A | A |
| GDP/GNP | 2016 | 12/2017 | A | A | A |
| International Investment Position6 | 2016 | 1/2018 | A | A | A |
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).
Burkina Faso: Table of Common Indicators Required for Surveillance
| Date of latest observation | Date received | Frequency of data6 | Frequency of reporting7 | Frequency of publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | Current | Current | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 09/2018 | 10/2018 | M | M | M |
| Reserve/Base Money | 09/2018 | 10/2018 | M | M | M |
| Broad Money | 08/2018 | 10/2018 | M | M | M |
| Central Bank Balance Sheet | 09/2018 | 10/2018 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 09/2018 | 10/2018 | M | M | M |
| Interest Rates2 | 3/2016 | 4/2016 | M | M | M |
| Consumer Price Index | 08/2018 | 10/2018 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | 12/2014 | 10/2015 | I | I | I |
| Revenue, Expenditure, Balance and Composition of Financing3 – Central Government | 06/2018 | 10/2018 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 12/2017 | 3/2018 | A | A | A |
| External Current Account Balance | 2016 | 1/2018 | A | A | A |
| Exports and Imports of Goods and Services | 2016 | 1/2018 | A | A | A |
| GDP/GNP | 2016 | 12/2017 | A | A | A |
| International Investment Position6 | 2016 | 1/2018 | A | A | A |
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).
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.