Title Page

CEMAC

STAFF REPORT ON THE COMMON POLICIES OF MEMBER COUNTRIES, AND COMMON POLICIES IN SUPPORT OF MEMBER COUNTRIES REFORM PROGRAMS— INFORMATIONAL ANNEX

December 16, 2022

Prepared By

Contents

• RELATIONS OF CEMAC MEMBER COUNTRIES WITH THE FUND

Relations of CEMAC Member Countries with the Fund

Cameroon, Central African Republic (C.A.R.), Chad, Republic of Congo, and Gabon joined the IMF in 1963, and Equatorial Guinea joined in 1969. All Central African Economic and Monetary Community (CEMAC) member countries accepted the obligations of Article VIII, Sections 2, 3 and 4 of the IMF Articles of Agreement on June 1, 1996.

Relations of CEMAC Member Countries with the Fund

Cameroon. On May 4, 2020, the Executive Board approved a disbursement under the Rapid Credit Facility (RCF) equivalent to SDR 165.6 million (about US$ 226 million, 60 percent of quota), a second emergency disbursement equivalent to SDR 110.4 million (about US$156 million, 40 percent of quota) was approved on October 21, 2020. On July 29, 2021, the Executive Board approved a three-year arrangement under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) for SDR 483 million (about US$689.5 million or 175 percent of Cameroon’s quota at the IMF), respectively, to support the country’s economic and financial reform program. Cameroon is on a 24-month consultation cycle.

Central African Republic. On December 20, 2019, the Executive Board approved a three-year ECF arrangement for SDR 83.55 million (about US$115.1 million, 75 percent of Central African Republic’s quota at the IMF) to support the country’s economic and financial reform program which expired in July 2022 due to the lack of review completion for more than 18 months. On April 20, 2020, the Executive Board approved a disbursement under the Rapid Credit Facility (RCF) for SDR 27.5 million (US$37.6 million or 25 percent of CAR’s quota at the IMF). On December 17, 2021, IMF Management approved a seven-month Staff Monitored Program (SMP). The First Review of the SMP was completed by Management on March 31, 2022. The last Article IV consultation was concluded on December 19, 2018, and an Article IV consultation is expected to be concluded in December 2022. CAR is on a 24-month consultation cycle but is experiencing delays due to delayed program reviews.

Chad. On July 22, 2020, the Executive Board approved a disbursement under the RCF (RCF-2 of SDR 49.07 million (equivalent to $68.4 million or 35 percent of Chad’s quota), which followed RCF-1 of SDR 84.12 million (equivalent to $115.1 million or 60 percent of quota on April 14, 2020) and cancelled the ECF previously approved on June 30, 2017. On December 10, 2021, The IMF Executive Board approved a new 36-month arrangement under the Extended Credit Facility, in an amount equivalent to SDR 392.56 million (equivalent to US$ 570.75 million or 280 percent of quota). The last Article IV consultation was concluded on July 3, 2019. Chad is on a 12-month consultation cycle but is experiencing delays due to delayed program reviews.

Republic of Congo. On January 21, 2022, the Executive Board approved a three-year arrangement under the ECF for SDR 324 million (equivalent to US$448.6 million or 200 percent of the Republic of Congo’s quota) to support the country’s economic and financial reform program. The last Article IV consultation was concluded on September 24, 2021. Congo is on a 24-month consultation cycle.

Equatorial Guinea. On December 18, 2019, the Executive Board approved a three-year arrangement under the EFF for SDR 205 million (equivalent to US$282.8 million or 130 percent of Equatorial Guinea’s quota) to support the country’s economic and financial reform program which will end on December 17th 2022 without review. On September 15, 2021, the Executive Board approved Equatorial Guinea’s request for emergency assistance of SDR 47.25 million (equivalent to US$67.38 million or 30 percent of quota) under the Rapid Financing Instrument. The last Article IV consultation was concluded on July 25, 2022. It was proposed that the next Article IV consultation with Equatorial Guinea take place in accordance with the Executive Board decision on consultation cycles for members with Fund Arrangements.

Gabon. On April 9, 2020, the Executive Board approved the disbursement of SDR 108 million (equivalent to US$ 147 million or 50 percent of Gabon’s quota) under the Rapid Financing Instrument, a second disbursement of SDR 108 million (equivalent to US$152.61 million or 50 percent of quota) was approved on July 31, 2020. On July 28, 2021, the Executive Board approved a three-year extended arrangement under the EFF with Gabon for SDR 388.8 million (about US$553 million or 180 percent of quota) to support the country’s economic and financial reform program. The last Article IV consultation was concluded on December 16, 2019. Gabon is on a 24-month consultation cycle.

Safeguards Assessments

The Bank of the Central African States (BEAC) is the regional central bank of the Central African Economic and Monetary Community (CEMAC). Under the IMF safeguards policy and in line with the four-year cycle for safeguards assessments of regional central banks, an update safeguards assessment was completed in April 2022. The assessment found that the BEAC maintained strong governance arrangements following the comprehensive 2017 legal reforms that strengthened both governance and autonomy arrangements and completed the supplementary work on secondary legal instruments in 2019. The BEAC accomplished an important milestone and strengthened its financial reporting practices with the implementation of International Financial Reporting Standards. The external audit arrangements continue to be robust with joint audits conducted by experienced firms. Nevertheless, the internal audit function faces capacity constraints and has not yet achieved full alignment with international practices, and efforts are needed to develop the risk management function, cyber resilience, and business continuity and disaster recovery plans.

Statistical Issues

Assessment of data adequacy for surveillance and coverage of statistical issues are discussed in individual Article IV country reports.

Exchange System

CEMAC’s currency is the CFA franc. From 1948 to 1999, it was pegged to the French franc. Since the euro was introduced in 1999, it has been pegged to the euro at the rate of CFAF 655.957 per euro.

Article IV Consultation Discussions

Following an Executive Board decision in January 2006, discussions with monetary unions have been formalized and are part of the Article IV consultation process with member countries. The consultation discussions reported in the companion staff report are thus in relation with Article IV consultations with the six CEMAC member countries. The Executive Board concluded the last Article IV consultation discussion on common policies of CEMAC members on December 1, 2021. Article IV consultation discussions for CEMAC are held on a 12-month cycle.

FSAP Participation and ROSCs

The first regional Financial Sector Assessment Program (FSAP) was carried out during January– March 2006. Regional Reports on Observance of Standards and Codes (ROSCs) were done in the areas of monetary and financial policy transparency, banking supervision, and anti-money laundering and combating the financing of terrorism (AML/CFT) in June 2006. A FSAP update took place during November 2014–January 2015.