Abstract
Fourth Review under the Extended Credit Facility Arrangement and Requests for Waivers of Nonobservance of Performance Criteria and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Cameroon
1. This supplement provides an update on Cameroon’s external arrears since the issuance of the staff report for the fourth review under the ECF arrangement. The updated information regarding external arrears increases the level of nonobservance of the continuous performance criterion (CPC) on the non-accumulation of external arrears, for which the Cameroonian authorities have requested a waiver of non-observance based on corrective measures. The additional information does not change the thrust of the staff appraisal.
2. The amount of new external arrears that accumulated since the Board concluded the third review under the ECF arrangement is CFAF 3.18 billion (these are in addition to the amount of CFAF 52 billion already reported in the staff report). Besides the CFAF 52 billion already reported, one payment to Spain was missed in January and another one was missed in May 2019. The May payment was made shortly after the end of the grace period, and the authorities didn’t have all the necessary information to make the January payment on time. Arrears related to the January payment have now been cleared, and penalty interests related to both amounts have also been paid. The authorities have indicated that they would strengthen the monitoring of debt service falling due. Given the small amount of the new arrears (0.01 percent of GDP) and the authorities’ corrective action, staff continues to support the authorities’ request for a waiver of non-observance of this PC.
3. A revised supplementary letter of intent is attached to this supplement.
Supplementary Letter of Intent
July 1, 2019
Madame Christine Lagarde
Managing Director
International Monetary Fund
700 19th Street N.W.
Washington, D.C. 20431
U.S.A.
Madam Managing Director:
Further to the Letter of Intent dated June 17, 2019, that I have sent to you in order to request the conclusion of the 4th review of the economic and financial program supported by the International Monetary Fund under the Extended Credit Facility, I wish to inform you that the amount of new external arrears that accumulated since the Board completed the third review of this program is CFAF 55.18 billion and not CFAF 52 billion as reported in the staff report as well as in the above-mentioned Letter of Intent and the attached Memorandum of Economic and Financial Policies. The additional arrears have been recently accrued towards Spain, on the one hand due to a small delay in payment of debt service beyond the grace period and, on the other hand, because the government did not have the necessary information to make the payment on time. All arrears and related penalty interests have now been fully repaid.
Sincerely yours,
/s/
Joseph Dion Ngute
Prime Minister, Head of Government