IMF reaches financial agreement under the rapid credit facility with Central African Republic

The International Monetary Fund mission, held discussions with the Central African Republic Minister of Finance and Budget, Mr. Rémi Yakoro,  to finalize discussions on an emergency program that could be supported by IMF’s Rapid Credit Facility from March 24 to April 2, 2014.

The delegation of the C.A.R. and the IMF mission agreed on a macro-fiscal framework and a set of economic and structural policies and measures focused at restoring progressively macroeconomic stability, achieving fiscal consolidation, strengthening the capacity of the C.A.R. government, and coordinating technical assistance.

The priority of the expenditure is to progressively restore public finances through improved mobilization of tax revenues and more effective control of spending with a view to limiting the domestic primary balance to 7.6 percent of GDP. Accordingly, the Transition Authorities and the mission agreed on measures to resume and strengthen public financial management by restoring revenue mobilization capacity, rationalizing and enhancing the monitoring of cash flow management, cleaning up the database for civil servants and payroll, and resuming swiftly normal expenditure execution procedures.

Finally, the mission held discussions on the broad lines of a draft budget policy for 2015, against the backdrop of a return to growth at around 5 percent and improved political and security conditions.

The mission takes this opportunity to thank the C.A.R. authorities for their exemplary cooperation and the candid and constructive discussions that took place. Furthermore, the mission wishes to thank the BEAC authorities for their logistical support.”

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