Côte d'Ivoire runs to IMF for $3.5 billion bailout; Staff-Level Agreement reached

An International Monetary Fund (IMF) staff team, led by Mr. Olaf Unteroberdoerster, visited Abidjan from 1 – 14 March 2023 and agreed with the Ivorian authorities on all policy objectives and reforms for an economic reform program that could be supported by an IMF financial arrangement under the Extended Fund Facility (EFF)/ Extended Credit Facility (ECF).

A staff-level agreement has now been reached, including on the level of access to Fund resources of 400 percent of quota (equivalent to about US$ 3.5 billion) under the Extended Fund Facility (EFF)/Extended Credit Facility (ECF).

Mr. Unteroberdoerster issued the following statement on Wednesday, 5 April 2023: “The Ivorian economy proved resilient to the pandemic, but the economic rebound has softened in the face of adverse spillovers from Russia’s war in Ukraine and global monetary tightening”.

“Indirect and direct subsidies to curb price pressures, higher security spending, and worsening terms-of-trade amid robust domestic demand have led to a widening of macroeconomic imbalances in 2022”.

He noted: “Against this challenging backdrop, the authorities have requested Fund support under a blended EFF/ECF arrangement for their economic program. It aims to preserve fiscal and debt sustainability and anchor the 2021-25 National Development Plan (NDP) in key structural priorities to promote more inclusive growth led by the private sector and facilitate Côte d’Ivoire’s transition towards a middle-income country”.

“Staff fully support the authorities’ reform agenda and welcomes their deep commitment to fiscal and debt sustainability, and to building a more prosperous and inclusive society amid rapid demographic change and significant external challenges”, he noted.

The IMF team met with Vice President Tiémoko Koné; Prime Minister Patrick Achi; Minister of State and Agriculture Kobenan Adjoumani; Minister of Planning and Development Nialé Kaba; Minister of Petroleum, Mines and Energy Sangafowa Coulibaly; Minister of Economy and Finance Adama Coulibaly; Minister of Budget and State Holdings Moussa Sanogo; Minister of Commerce and Industry Souleymane Diarrassouba; Minister and Secretary General of the Presidency Abdourahmane Cissé; and other senior government and BCEAO officials, as well as representatives of the business and donor communities.

Ghana reached a similar agreement with the IMF a few months ago for $3 billion.

Ghanaian authorities were hoping for a board-level agreement by March but that did not happen.