The International Monetary Fund (IMF) said Wednesday that it expects to reach a $2.6 billion lending agreement to assist Ivory Coast face ongoing economic challenges “in the coming days.”
Although the West African country’s economy proved “resilient” to the Covid-19 pandemic, the fallout from the war in Ukraine and the global cycle of monetary tightening to tackle price rises have weighed on its economy, the Fund announced in a statement following a visit to the country by senior officials.
“Indirect and direct subsidies to curb price pressures, higher security spending, and worsening terms-of-trade amid robust domestic demand,” led to a “widening of macroeconomic imbalances” in Ivory Coast last year, according to the statement.
In response, the Fund said it expects to finalize a staff-level agreement worth more than $2.6 billion in the coming days.
The Fund’s proposals, which would require approval by the IMF Executive Board, are aimed at “preserving fiscal and debt sustainability,” by making a number of structural reforms to the Ivoirian economy.
These would include “strengthening social protection for vulnerable households, improving public financial management and investment efficiency, and promoting private-sector led and more inclusive growth by creating new employment opportunities,” the Fund said.
Credit: AFP
