46 billion. This is the disbursement amount announced on March 8 by the FMI at the end of its Board of Directors meeting, which approved the third reviews of the agreements under the Extended credit facility (Fec) and Extended Credit Facility (Medc) concluded with Cameroon in 2021. According to a press release signed on March 9 by the Cameroonian Minister of Finance, Louis Paul Motazethis disbursement -52.2 million DTS (Special drawing rights) – brings to more than 240 billion FCFA the total of IMF support to Cameroon, under the Economic and Financial Program, since 2021. This disbursement, he adds, will trigger the payment of contributions other technical and financial partners. By approving this disbursement, the IMF hailed the resilience of the Cameroonian economy which, in an uncertain and more difficult global context, like a reed, bends but does not break. Indeed, in 2022, its growth was estimated at 3.4%, supported by the rise in oil prices and non-oil production. The overall budget deficit is reduced, falling from 3% of GDP in 2021 to around 1.8% in 2022, due to the increase in oil revenues.
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On the other hand, deplores the IMF, the non-oil primary deficit is widening, from 3.9% of GDP in 2021 to 4.5% in 2022, mainly due to the increase in subsidies on fuel prices – 775 billion in 2022. In addition, indicates the institution of Bretton woods, the ceiling concerning the accumulation of new arrears of external payments has not been respected. Notwithstanding this mixed picture, real GDP growth is projected at 4.3% in 2023 and should average 4.5% in the medium term.
A little bit, let us indicate, about the subsidies on the prices of fuels that, these third reviews intervene while Cameroon has partially yielded to this requirement of the IMF. The international financial institution has always recommended that the country give up fuel price subsidies to create more budgetary room for manoeuvre. The third reviews under the FEC and MEDC programs also take place a few days before the arrival – announced tomorrow, March 14 – in Cameroon of the deputy director general of the IMF, Kenji Okamura, of Japanese nationality. For the Cameroonian Minister of Finance, this visit contributes to the strengthening of cooperation relations between Cameroon and this institution with the opportunity to explore new prospects for dialogue with a view to financing priority projects included in the national development strategy. 2020-2030.
The agreements under the extended credit facility and the extended credit mechanism had been approved on July 29, 2021 for an amount of 483 million SDRs (a little less than 400 billion CFA francs).
For the record, the previous agreements under the Extended Credit Facility and the Extended Credit Facility between Cameroon and the IMF were initialed in 2017.
By Jenner Onana
