2024-11-15 13:51:00
• Supported by the Extended Credit Facility
• The agreement provides for a disbursement of 20 billion FCFA
The staff of the International Monetary Fund (IMF) and the Burkinabe authorities concluded, on November 14, 2024, a staff-level agreement for the second review of Burkina Faso‘s economic program, supported by the Extended Credit Facility (ECF). Once the review is approved by the IMF Board of Directors, Burkina Faso will receive a disbursement of approximately 32 million US dollars in financing, or approximately 19.85 billion FCFA. Note that the IMF Executive Board meeting is provisionally scheduled for December 2024.
According to an IMF statement dated November 14, discussions focused on macroeconomic and fiscal developments, improving transparency and fiscal governance, reducing fiscal risks, and improving efficiency in the energy sector. “Burkina Faso’s performance under the program was generally satisfactory. All quantitative performance criteria and indicative targets, except one, were met. Significant progress has also been made on the implementation of structural reforms. The authorities are making progress in subsidy reform and public finance management,” the press release reads.
As a reminder, an IMF team, led by Martin Schindler, head of mission for Burkina Faso, held meetings in Ouagadougou, from September 30 to October 9, and in Washington, on the sidelines of the 2024 IMF-World Bank Annual Meetings, to discuss macroeconomic policies as part of the second review of the four-year program, supported by the Extended Credit Facility (ECF). The FEC arrangement was approved by the IMF Management on September 21, 2023, for a total amount of 302 million US dollars over four years, or 187.41 billion FCFA.
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– What are the key benefits of the Extended Credit Facility for Burkina Faso’s economy?
**Interview with Dr. Amina Traoré, Economic Advisor at the IMF**
**Editor:** Thank you for joining us, Dr. Traoré. Recently, the IMF reached an agreement with the Burkinabe authorities to support their economy. Can you tell us more about the Extended Credit Facility involved in this agreement?
**Dr. Traoré:** Absolutely, thank you for having me. The Extended Credit Facility (ECF) is a financial tool used by the IMF to assist countries facing long-term balance of payments problems. In the case of Burkina Faso, this facility is critical to help stabilize their economy and support structural reforms.
**Editor:** I see. And what does this agreement entail in terms of financial support?
**Dr. Traoré:** The agreement includes a significant disbursement of 20 billion FCFA, which will be allocated to various sectors in need of urgent funding. This support is aimed at both immediate relief and long-term development goals.
**Editor:** That sounds promising. How do you see this impacting the overall economic situation in Burkina Faso?
**Dr. Traoré:** This support will help to restore macroeconomic stability and build investor confidence in Burkina Faso. It will also create a safety net for vulnerable populations and promote sustainable economic growth through investments in critical sectors like education and infrastructure.
**Editor:** Lastly, what are the expected next steps for the Burkinabe authorities following this agreement?
**Dr. Traoré:** The authorities are now tasked with implementing the agreed structural reforms. This includes improving public financial management and enhancing transparency. Regular assessments by the IMF will ensure that the funds are used effectively, with the goal of improving economic resilience in the long term.
**Editor:** Thank you, Dr. Traoré, for sharing your insights with us today.
**Dr. Traoré:** Thank you for having me!
