Abstract
BURUNDI
Title page
BURUNDI
REQUEST FOR DISBURSEMENT UNDER THE RAPID CREDIT FACILITY—INFORMATIONAL ANNEX
October 6, 2021
Prepared By
The African Department
(In Consultation with Other Departments)
Relations with the IMF
(As of August 31, 2021)
Membership Status
Joined: 9/28/1963; Acceptance Article VIII: No
| General Resources Account: | SDR Million | Percent Quota |
| Quota | 154.00 | 100.00 |
| Fund Holdings of currency (Exchange Rate) | 144.14 | 93.60 |
| Reserve Tranche Position | 9.90 | 6.43 |
| General Resources Account: | SDR Million | Percent Quota |
| Quota | 154.00 | 100.00 |
| Fund Holdings of currency (Exchange Rate) | 144.14 | 93.60 |
| Reserve Tranche Position | 9.90 | 6.43 |
| SDR Department: | SDR Million | Percent Allocation |
| Net cumulative allocation | 221.45 | 100.00 |
| Holdings | 153.93 | 69.51 |
| SDR Department: | SDR Million | Percent Allocation |
| Net cumulative allocation | 221.45 | 100.00 |
| Holdings | 153.93 | 69.51 |
| Outstanding purchases and Loans: | SDR Million | Percent Quota |
| ECF Arrangements | 13.90 | 9.03 |
| Outstanding purchases and Loans: | SDR Million | Percent Quota |
| ECF Arrangements | 13.90 | 9.03 |
Latest Financial Commitments:
Arrangements:
| Type | Date of arrangement | Expiration date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
| ECF | Jan 27, 2012 | Mar 31, 2016 | 40.00 | 30.00 |
| ECF | Jul 07, 2008 | Jan 23, 2012 | 51.20 | 51.20 |
| ECF | Jan 23, 2004 | Jan 22, 2008 | 69.30 | 69.30 |
| Type | Date of arrangement | Expiration date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
| ECF | Jan 27, 2012 | Mar 31, 2016 | 40.00 | 30.00 |
| ECF | Jul 07, 2008 | Jan 23, 2012 | 51.20 | 51.20 |
| ECF | Jan 23, 2004 | Jan 22, 2008 | 69.30 | 69.30 |
Projected Payments to Fund1/
(SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
| 2021 | 2022 | 2023 | 2024 | 2025 | |
| Principal | 6.40 | 4.50 | 2.50 | 0.50 | |
| Charges/Interest | 0.01 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total | 0.01 | 6.44 | 4.54 | 2.54 | 0.54 |
| Forthcoming | |||||
| 2021 | 2022 | 2023 | 2024 | 2025 | |
| Principal | 6.40 | 4.50 | 2.50 | 0.50 | |
| Charges/Interest | 0.01 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total | 0.01 | 6.44 | 4.54 | 2.54 | 0.54 |
Implementation of HIPC Initiative:
| Enhanced | ||||
| Commitment of HIPC assistance | Framework | |||
| Decision point date | Aug 2005 | |||
| Assistance committed by all creditors (US$ Million)2/ | 832.60 | |||
| Of which: IMF assistance (US$ million) | 27.87 | |||
| (SDR equivalent in millions) | 19.28 | |||
| Completion point date | Jan 2009 | |||
| Disbursement of IMF assistance (SDR Million): | ||||
| Assistance disbursed to the member | 19.28 | |||
| Interim assistance | 0.26 | |||
| Completion point balance | 19.02 | |||
| Additional disbursement of interest income3/ | 3.07 | |||
| Total disbursements | 22.35 | |||
| Implementation of Multilateral Debt Relief Initiative (MDRI): | ||||
| MDRI-eligible debt (SDR Million)4/ | 26.40 | |||
| Financed by: MDRI Trust | 9.01 | |||
| Remaining HIPC resources | 17.39 | |||
| Enhanced | ||||
| Commitment of HIPC assistance | Framework | |||
| Decision point date | Aug 2005 | |||
| Assistance committed by all creditors (US$ Million)2/ | 832.60 | |||
| Of which: IMF assistance (US$ million) | 27.87 | |||
| (SDR equivalent in millions) | 19.28 | |||
| Completion point date | Jan 2009 | |||
| Disbursement of IMF assistance (SDR Million): | ||||
| Assistance disbursed to the member | 19.28 | |||
| Interim assistance | 0.26 | |||
| Completion point balance | 19.02 | |||
| Additional disbursement of interest income3/ | 3.07 | |||
| Total disbursements | 22.35 | |||
| Implementation of Multilateral Debt Relief Initiative (MDRI): | ||||
| MDRI-eligible debt (SDR Million)4/ | 26.40 | |||
| Financed by: MDRI Trust | 9.01 | |||
| Remaining HIPC resources | 17.39 | |||
Debt Relief by Facility (SDR Million):
| Eligible Debt | |||
| Delivery Date | GRA | PRGT | Total |
| February 2009 | N/A | 26.40 | 26.40 |
| Eligible Debt | |||
| Delivery Date | GRA | PRGT | Total |
| February 2009 | N/A | 26.40 | 26.40 |
Implementation of Catastrophe Containment and Relief (CCR) Trust:
| Date of catastrophe | Board decision date | Amount Committed (SDR million) | Amount Disbursed (SDR million) |
| N/A | Jul 20, 2020 | 5.48 | 5.48 |
| N/A | Oct 02, 2020 | 4.82 | 4.82 |
| N/A | Apr 01, 2021 | 4.16 | 4.16 |
| Date of catastrophe | Board decision date | Amount Committed (SDR million) | Amount Disbursed (SDR million) |
| N/A | Jul 20, 2020 | 5.48 | 5.48 |
| N/A | Oct 02, 2020 | 4.82 | 4.82 |
| N/A | Apr 01, 2021 | 4.16 | 4.16 |
Safeguards Assessments:
The last safeguards assessment of the BRB was completed and approved by IMF management on July 17, 2012. The main findings included the need for legal reforms to strengthen the BRB law (structural benchmark under the previous ECF program); governance arrangements required significant strengthening namely Board and Audit Committee oversights of foreign exchange reserves and audit mechanisms respectively, and that control weaknesses in the fiscal accounts relating to government payments remained to be addressed. In response to the 2012 safeguards assessment recommendations, the BRB adopted key reforms: an international audit firm was recruited to (i) conduct a special audit of large disbursements on behalf of the government processed by the BRB during June 30, 2011-March 31, 2012, (ii) evaluate the implementation of the new decree on public expenditures management, and (iii) ascertain the status of implementation of earlier special audit recommendations. The recommendation from the 2012 assessment on legal reforms remains outstanding. During recent discussions in the context of the RCF, the authorities committed to undergo an update safeguards assessment, which would need to be completed before the Executive Board approval of any subsequent arrangement, publish the audited FY2020/21 financial statements of the BRB and provide Fund staff with the necessary audit reports.
Exchange System and Exchange Rate Arrangement
The de jure exchange rate arrangement of Burundi is floating, and its de facto exchange rate arrangement is classified as a crawl-like. As discussed in the 2014 Article IV Consultation report, Burundi maintains one multiple currency practice (MCP). The MCP arises from the use of an official rate for government transactions, which deviates from market rates by more than 2 percent. Staff is also assessing a few FX regulations and practices that appear restrictive. These restrictions among other factors have caused a continuous increase of the parallel market premium since 2015, which is an important challenge for an effective monetary policy.
Article IV Consultation
The last Article IV consultation discussions with Burundi were held in July 2014. The staff report was discussed by the Executive Board on August 25, 2014.
Resident Representative
None
Relations with Other International Financial Institutions
World Bank https://www.worldbank.org/en/country/burundi/overview
World Bank Group Projects:
https://projects.worldbank.org/en/projects-operations/projects-list?os=0&qterm=burundi
African Development Bank https://www.afdb.org/en/countries/east-africa/burundi
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
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.
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.
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.