Front Matter Page
IMF Country Report No. 20/185
CAMEROON
REQUESTS FOR DISBURSEMENT UNDER THE RAPID CREDIT FACILITY, EXTENSION OF THE EXTENDED CREDIT FACILITY ARRANGEMENT, AND REPHASING OF ACCESS—PRESS RELEASE; STAFF REPORT; STAFF STATEMENT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR CAMEROON
June 2020
In the context of the Request for Disbursement Under the Rapid Credit Facility, 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 May 4, 2020, following discussions that ended on April 16, 2020, with the officials of Cameroon 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 28, 2020.
A Debt Sustainability Analysis prepared by the staffs of the IMF and the World Bank.
A Staff Statement updating information on recent developments.
A Statement by the Executive Director for Cameroon.
The documents listed below have been or will be separately released:
Letter of Intent sent to the IMF by the authorities of Cameroon*
*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
CAMEROON
REQUESTS FOR DISBURSEMENT UNDER THE RAPID CREDIT FACILITY, EXTENSION OF THE EXTENDED CREDIT FACILITY ARRANGEMENT, AND REPHASING OF ACCESS
April 28, 2020
Executive Summary
Context. Cameroon is facing urgent financing needs driven by the twin Covid-19 pandemic and terms of trade shocks. Externally, Cameroon is exposed to demand and supply shocks due to the slowdown in major trading partners (China and Europe) and falling oil prices. Domestically, containment efforts to slow the number of Covid-19 cases, which have grown rapidly since March 6, 2020, are expected to further slow growth and widen the fiscal and current account deficits.
Request for Fund Support. Given limited buffers and urgent balance of payments needs due to the pandemic, the authorities are requesting financial assistance under the “exogenous shocks window” of the Rapid Credit Facility (RCF) equivalent to 60 percent of quota (SDR 165.6 million), provided that the Executive Board also approves the request for an extension of the ECF arrangement, due to expire on June 25, 2020, to September 30, 2020 with a rephasing of access.
Macroeconomic Policies and IMF Engagement. The authorities’ immediate priority is to boost health and social protection spending and use counter-cyclical fiscal policy measures to limit the spread of the disease in Cameroon and its humanitarian, economic and financial impact. The government’s preparedness and response plan envisages scaling up health spending to ensure infection prevention and control, improve case management, upgrade health facilities, train and increase health personnel. The funds linked to the fight against the Covid-19 pandemic will be subject to the strict application of budgetary procedures and controls, including audits. Cameroon remains committed to its medium-term reform agenda and the authorities expressed their interest in a successor arrangement following completion of the 6th and final ECF Review.
Approved By
David Owen (AFR) and Ashvin Ahuja (SPR)
An IMF team consisting of Mr. Sy (Head), Messrs. Benlamine and Tintchev (all AFR), Mr. Blache (MCM), Mr. Arnoud (FAD), Ms. Schauer (SPR), Messrs. Nsengiyumva (Resident Representative), Mr. Tchakote (local economist), and Mr. N’Sonde (OED) exchanged information and held discussions with the authorities by video conferences on April 16, 2020.
Contents
BACKGROUND
PRE-COVID-19 ECONOMIC DEVELOPMENTS
IMPACT OF THE COVID-19 PANDEMIC
POLICY ISSUES
FUND SUPPORT UNDER THE RAPID CREDIT FACILITY
STAFF APPRAISAL
TABLES
1. Selected Economic and Financial Indicators, 2018–25
2a. Central Government Operations, 2018–25 (CFAF billion)
2b. Central Government Operations, 2018–25 (In percent of GDP)
3. Balance of Payments, 2018–25
4. Monetary Survey, 2018–25
5. Indicators of Capacity to Repay the Fund, 2020–33
6a. Original Schedule of Disbursements Under the ECF Arrangement, 2017–20
6b. Proposed New Schedule of Disbursements Under the ECF Arrangement, 2017–20
APPENDIX
I. Letter of Intent
Front Matter Page
CAMEROON
REQUESTS FOR DISBURSEMENT UNDER THE RAPID CREDIT FACILITY, EXTENSION OF THE EXTENDED CREDIT FACILITY ARRANGEMENT, AND REPHASING OF ACCESS—DEBT SUSTAINABILITY ANALYSIS
April 28, 2020
Approved By
David Owen and Marcello Estevão (IDA)
Joint Bank-Fund Debt Sustainability Analysis 1
Front Matter Page
700 19th Street NW
Washington, DC 20431
USA
