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.
Similar articles
1731901301
#Burkina #FasoIMF #agreement #reached #framework #2nd #review #economic #program
How will the implementation of the Extended Credit Facility impact the living standards of citizens in Burkina Faso?
**Interview with IMF Representative on Burkina Faso’s Extended Credit Facility Agreement**
**Interviewer:** Thank you for joining us today. As we understand, the International Monetary Fund recently reached an agreement with Burkina Faso under the Extended Credit Facility. Can you explain the significance of this agreement?
**IMF Representative:** Thank you for having me. The Extended Credit Facility (ECF) is designed to support countries facing serious economic challenges by providing financial assistance and policy advice. Our recent agreement with Burkina Faso allows for a disbursement of 20 billion FCFA, which will help fortify the country’s economic stability and implement necessary reforms.
**Interviewer:** What are the key goals that this financial support aims to achieve for Burkina Faso?
**IMF Representative:** The primary goal is to stabilize the economy, which has faced various challenges, including fiscal pressures and external shocks. The funds from the ECF will assist Burkina Faso in addressing budgetary needs and fostering a sustainable economic environment, ultimately leading to improved social services and development for its citizens.
**Interviewer:** How does the IMF collaborate with Burkina Faso’s authorities in implementing this agreement?
**IMF Representative:** Our collaboration involves continuous dialogue with Burkinabe authorities to monitor economic performance and tailor our support. We work together on a set of agreed policies and benchmarks, ensuring that the funds are used effectively to meet the country’s priorities, which includes enhancing governance and fiscal management.
**Interviewer:** Looking towards the future, what are the anticipated impacts of this agreement on the Burkinabe economy?
**IMF Representative:** We expect that the disbursement will provide immediate relief to the economy and help restore confidence among investors and donors. Long-term, successful implementation of the reforms is expected to lay a foundation for sustainable growth, job creation, and ultimately improved living standards for the people of Burkina Faso.
**Interviewer:** Thank you for your insights on this important agreement. It sounds like a crucial step for Burkina Faso’s economic recovery.
**IMF Representative:** Thank you for the opportunity to discuss this matter; we are committed to supporting Burkina Faso in its journey towards stability and growth.