(Ecofin Agency) - In a statement released on June 19, the International Monetary Fund (IMF) has announced that it has approved a $224.8 million additional credit for Cote d’Ivoire, in the framework of an Extended Credit Facility (ECF) and Extended Fund Facility (EFF).

"The Board ... approved an augmentation of access under the two arrangements by about US$224.8 million or 25 percent of the country's quota," the statement said. The source added that the additional credit brings to $900 million total lending to the country under two credit arrangements. This amount represents about the same quota provided to the IMF by Cote d’Ivoire.

In December 2016, the IMF approved three-year credit programmes worth $674.4 million. They aimed at supporting the efforts of the Ivorian government to strengthen balance payments, insure sustainable and inclusive growth and reduce poverty and unemployment by bolstering private investments. Moreover, the loans should help the nation better absorb external shocks, such as the over 35% drop in prices of cocoa, which is the main contributor to Cote d’Ivoire’s budget.

According to the IMF, economic outlook for WAEMU’s leading economy is solid, with growth projected at about 7% between 2017 and 2019.

This year, the country plans to keep its budget deficit at about 4.5% of GDP, a figure which it expects to reduce to 3% by 2019 (WAEMU’s standard) by improving the collection of revenues and debt management. Moreover, structural reforms are going to be put in place to help Cote d’Ivoire overcome social tension which gave rise to the recent mutinies that affected public finances.

Fiacre E. Kakpo