IMF agrees three-year funding deal with Burkina Faso

16 Mar 18

The International Monetary Fund has approved a three-year $157m arrangement to support Burkina Faso’s economic and financial reforms.

The programme, which is operating under the Extended Credit Facility, aims to achieve sustainable macroeconomic stability in the West African country while creating fiscal space by improving public spending, tax administration and introduced new tax policies.  

It will also help catalyse official and private financing and build resilience to future economic shocks, the IMF said.

IMF deputy managing director Mitsuhiro Furusawa said: “Burkina Faso faces significant development challenges, which have intensified in the recent period due to security shocks and social unrest.

“The authorities are making strong efforts to improve security and meet the expectations of the population in the context of limited resources through the implementation of their national development strategy.”

The first disbursement of $26.3m will be made immediately, while the remainder will be phased in over the duration of the programme, subject to semi-annual reviews.

The IMF said that Burkina Faso’s economic outlook was broadly favourable but security and domestic challenges posed risks.

The country’s budget also needs to be protected against the “accumulation of contingent liabilities” in the energy sector, the fund said.

Burkina Faso’s growth is estimated to have increased to 6.5% in 2017, from 5.9% the previous year. This was mainly due to higher agriculture output, particularly cotton, increased mining activity, and a significant increase in public investment.

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