(Ecofin Agency) - IMF Staff and Ivorian authorities reached a staff-level agreement on a three-year program that could be supported by two arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for SDR 487.8 million (about USD 674.3 million).

This sum represents 75% of Côte d’Ivoire’s quota in the IMF.

If approved by the IMF executive board, funds mobilized via the program will enable the WAEMU’s leading economy to support the main objectives of its 2016-2020 National Development Plan (NDP) “by addressing impediments to a sustainable balance of payments position”.

The Ivorian government still has not official agreed on balance trade deficit revealed few weeks ago by Agence Ecofin. The new agreement however is proof that the government is concerned about the situation. “The government’s budget deficit would converge to the WAEMU norm of 3 percent of GDP by 2019 to preserve public debt sustainability and support the regional international reserves pool,” IMF said.

Côte d’Ivoire, the world’s leading cocoa producer, gets most of its revenues from cocoa exports. However, dry weather and Sahara desert winds are set to curb output for the ongoing season. There is also a risk that government’s commitment to implement new infrastructure projects will lead to a deficit in the balance of services, subsequently in the country’s net exports.

In case the agreement is approved, Ivorian authorities committed to reforms including containing fiscal risks from public enterprises in difficulty, restructuring banks, improving business climate, improving debt management, extending monitoring of public entities beyond central government. Of course, while doing so, the country will receive IMF’s technical assistance.

Idriss Linge