Front Matter Page

IMF Country Report No. 20/132

CÔTE D’IVOIRE

REQUESTS FOR DISBURSEMENT UNDER THE RAPID CREDIT FACILITY AND PURCHASE UNDER THE RAPID FINANCING INSTRUMENT—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR CÔTE D’IVOIRE

April 2020

In the context of the Requests for Disbursement Under the Rapid Credit Facility and Purchase Under the Rapid Financing Instrument, the following documents have been released and are included in this package:

  • A Press Release including a statement by the Chair of the Executive Board.

  • The Staff Report prepared by a staff team of the IMF for the Executive Board’s consideration on April 17, 2020, following discussions that ended on April 3, 2020, with the officials of Côte d’Ivoire on economic developments and policies underpinning the IMF arrangement under the Rapid Credit Facility. Based on information available at the time of these discussions, the staff report was completed on April 10, 2020.

  • A Debt Sustainability Analysis prepared by the staffs of the IMF and the World Bank.

  • A Statement by the Executive Director for Côte d’Ivoire.

The documents listed below have been or will be separately released.

Letter of Intent sent to the IMF by the authorities of Côte d’Ivoire*

*Also included in Staff Report

The IMF’s transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities’ policy intentions in published staff reports and other documents.

Copies of this report are available to the public from

International Monetary Fund • Publication Services

PO Box 92780 • Washington, D.C. 20090

Telephone: (202) 623–7430 • Fax: (202) 623–7201

E-mail: publications@imf.org Web: http://www.imf.org

Price: $18.00 per printed copy

International Monetary Fund

Washington, D.C.

© 2020 International Monetary Fund

Front Matter Page

CÔTE D’IVOIRE

REQUESTS FOR DISBURSEMENT UNDER THE RAPID CREDIT FACILITY AND PURCHASE UNDER THE RAPID FINANCING INSTRUMENT

April 10, 2020

Context. Côte d’Ivoire will be significantly impacted by COVID-19 pandemic: the number of cases in the country has increased rapidly since the first confirmed case was reported on March 11 and the global crisis is expected to severely affect supply chains and external demand. The authorities’ policy response to the pandemic has been swift, putting in place measures to help contain and mitigate the spread of the disease and designing a health response plan. They have complemented these steps with an economic package to provide targeted support to vulnerable populations and firms affected by the pandemic. The pandemic will also temporarily dampen domestic revenue mobilization and complicate access to international market financing.

Request for Fund support. Cognizant of the strains on the budget and financing arising from the economic impact and mitigation efforts to fight the COVID-19 pandemic, the authorities are seeking financial assistance under the Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI) to address the urgent balance of payments needs, to be disbursed as direct budget support. In the attached letter, the authorities request financial support under the RCF/RFI blend of SDR 650.4 million, equivalent to 100 percent of quota, with the full amount to become available upon Board approval of the request. Staff supports the request.

Economic policies. The authorities have taken swift measures to contain the spread of COVID-19 and have prepared an emergency health response plan as well as an economic support package targeted at vulnerable households and sectors affected by the pandemic. Staff supports the authorities’ decision to accommodate the fiscal costs associated with the projected growth slowdown and health and economic emergency plans. The authorities should return to the pre-crisis deficit from 2021 onwards once the crisis abates to preserve the gains achieved during the ECF/EFF-supported program and ensure debt sustainability.

Performance under the ECF and EFF-supported program. Preliminary data point to satisfactory performance. All end-December 2019 performance criteria and structural benchmarks appeared to have been met. However, the achieved fiscal consolidation was more skewed towards spending cuts than planned, leading to missed indicative targets on the floors for tax revenue, central government’s amount payable and primary basic balance. At this juncture, it is envisaged to combine the 7th and 8th reviews in the fall 2020.

Approved By

Dominique Desruelle (AFR) and Craig Beaumont (SPR)

An IMF team consisting of Ms. Allard (head), Ms. Simard, Ms. Zinabou, Mr. Ouedraogo, Mr. Yago (all AFR), Mr. Fournier (FAD), Ms. Fruttero (SPR), Mr. Gijon (Resident Representative) and Mr. Yohou (local economist) held discussions with Côte d’Ivoire’s authorities by teleconferences led by Minister of Economy and Finance, Adama Coulibaly, on March 17 and April 1–3. Mr. Li and Mr. Magno assisted the team.

Contents

  • CONTEXT

  • IMPACT OF THE PANDEMIC AND OUTLOOK

  • A. Economic Channels of Transmission and Response

  • B. Outlook and Risks

  • POLICY DISCUSSIONS

  • A. Debt Sustainability

  • B. Regional Monetary Policy

  • ACCESS AND CAPACITY TO REPAY

  • A. Access Level and Modalities

  • B. Capacity to Repay and Safeguards Assessment

  • STAFF APPRAISAL

  • BOX

  • 1. The Economic Impact of the COVID-19 Pandemic on Côte d’Ivoire

  • TABLES

  • 1. Selected Economic Indicators, 2018–25

  • 2a. Fiscal Operations of the Central Government, 2017–25 (Billions of CFA Francs)

  • 2b. Fiscal Operations of the Central Government, 2017–25 (Percent of GDP)

  • 3a. Balance of Payments, 2016–25 (Billions of CFA Francs)

  • 3b. Balance of Payments, 2016–25 (Percent of GDP)

  • 4. Monetary Survey, 2016–25

  • 5. Financial Soundness Indicators for the Banking Sector, 2016–19

  • 6a. External Financing Requirements, 2016–25 (Billions of CFA Francs)

  • 6b. External Financing Requirements, 2016–25 (Percent of GDP)

  • 7. Indicators of Capacity to Repay the Fund, 2020–28

  • APPENDIX

  • I. Letter of Intent

Front Matter Page

CÔTE D’IVOIRE

REQUESTS FOR DISBURSEMENT UNDER THE RAPID CREDIT FACILITY AND PURCHASE UNDER THE RAPID FINANCING INSTRUMENT—DEBT SUSTAINABILITY ANALYSIS

April 10, 2020

Approved by

Dominique Desruelle and Craig Beaumont (IMF); and Marcello Estevão (IDA)

Prepared by the International Monetary Fund and the International Development Association

article image