4, May 2019
Ambazonia War: IMF Doles Out Another $77 Million No Mentions of Killings By Biya Who Lives in Geneva On Cash 0
The IMF is doling out another $77 million to Biya’s government without mentioning his killings in SW and NW nor that he lives, on the cash, in Geneva. Here is the announcement; “An International Monetary Fund (IMF) team, led by Ms. Corinne Deléchat, visited Yaoundé during April 23—May 3, 2019 to conduct discussions on the fourth review of the program supported by the Extended Credit Facility (ECF) that was approved in June 2017 . At the conclusion of this visit, Ms. Deléchat issued the following statement: “The IMF team reached staff-level agreement with the authorities on economic and financial policies that could support approval of the fourth review of their three-year program under the ECF.
The IMF Executive Board could consider the fourth review in late June 2019. The completion of the fourth review would enable a fifth disbursement of SDR 55.2 million (about US$ 76.5 million). “Overall economic growth is estimated to have reached 4 percent in 2018, from 3.5 percent in 2017, mostly owing to a lower contraction in the oil and gas sector than anticipated. Non-oil activity is estimated to have remained robust at 4.4 percent in 2018, driven by projects related to the African Cup of Nations (CAN), strong external demand for forestry products and expanding financial services. Inflation remains low but is trending up from 0.8 percent in 2017 to 2.3 percent in March 2019 (y/y) mainly owing to higher food prices and with strong regional variations.
Budget execution in 2018 was broadly as envisaged under the program, but with stronger-than-envisaged revenue mobilization and higher expenditures, notably on public investment. In spite of ample financing, government net deposits at the BEAC declined by 0.5 percent of GDP as the authorities made large payments during the last quarter on unexecuted payment orders of previous years. Structural reforms are moving ahead, albeit with slower progress on already-delayed structural benchmarks in the financial sector. “ The authorities are reprofiling the 2019 budget to take into account higher projected revenue and fully incorporate spending needs related to the forthcoming elections and fuel subsidies, while keeping the overall deficit anchored at 2 percent of GDP .
The revised budget also allows for accelerated implementation of ongoing foreign-financed investment projects based on a well-prioritized disbursement plan. In turn, higher external financing will allow the rebuilding of fiscal buffers and payment of the expenditure float accumulated at end-2018. The authorities continue to strengthen transparency and controls in budget implementation. Resort to exceptional spending procedures will decline and a decree establishing a budget calendar including a reduction of the complementary period to one month will be adopted. The laws transposing the four remaining CEMAC Directives on public financial management are being finalized.” “The medium-term outlook remains positive, with growth expected to gradually increase to 4.2 percent in 2019 owing to higher projected oil production. Finalization of the projects related to the 2021 CAN and coming on stream of large energy and transport infrastructure projects should boost medium-term growth to about 5-5 ½ percent of GDP. Fiscal consolidation over 2019-21, together with enhanced foreign exchange repatriation will support a continued rebuilding of BEAC reserves. Structural reforms to increase investment efficiency, reduce contingent liabilities of public enterprises and support private sector development will support the growth outlook going forward.
“The team met with Prime Minister Joseph Dion Ngute, Minister of State Secretary General at the Presidency Ferdinand Ngoh Ngoh, Minister of Finance Louis Paul Motaze, Minister of Economy, Planning, and Regional Development Alamine Ousmane Mey, BEAC Governor Mahamat Abbas Tolli, BEAC National Director Jean-Marie Mani, and other senior officials. The mission also met representatives of the diplomatic and donor communities.” “The team wishes to thank the Cameroonian authorities for their hospitality, cooperation, and the constructive dialogue.'” We’ll have more on this. On December 17 the International Monetary Fund announced more money to Paul Biya’s government, while not answering Inner City Press question about Biya losing the African Cup of Nations on which the IMF relied. The December 17 announcement: “The Executive Board of the International Monetary Fund (IMF) today completed the third review of the arrangement under the Extended Credit Facility (ECF) Arrangement for Cameroon. The completion of the review enables the disbursement of SDR 55.2 million (about US$76.3 million), bringing total disbursements under the arrangement to SDR317.4 million (about US$438.9 million).
In completing the third review, the Executive Board also approved the authorities’ request for a waiver for the non-observance of the performance criterion on the ceiling on net BEAC financing and the modification of two performance criteria pertaining to the ceiling on net borrowing of the central government from the central bank, excluding IMF financing, and the continuous performance criterion on new non-concessional external debt contracted or guaranteed by the government.
Cameroon’s three-year arrangement for SDR 483 million (about US$667,8 million, or 175 percent of Cameroon’s quota), was approved on June 26, 2017 (see Press Release No.17/248 ). It aims at supporting the country’s efforts to restore external and fiscal sustainability and lay the foundations for sustainable, inclusive and private sector-led growth.
Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement:
“Cameroon’s performance under its ECF-supported program is broadly satisfactory. Most end-June 2018 targets have been met and structural reforms have advanced, with completion of key delayed financial sector reforms.
“The authorities remain committed to the concerted regional effort to rebuild CEMAC’s fiscal and external buffers. To that end, addressing revenue shortfalls and containing investment spending will be key to reaching the 2018 deficit target. Steadfast implementation of the 2019 budget, including measures to mobilize non-oil revenue by gradually removing exemptions and further spending rationalization will be essential to mitigate the risks from the challenging security situation, increasing commodity price volatility and other shocks to growth.
“Public external debt has increased rapidly in 2018, mainly owing to faster-than-envisaged disbursements of foreign project loans. Strictly limiting new non-concessional borrowing and addressing the stock of contracted but undisbursed loans are essential to maintain debt sustainability. Gradual adjustments in administered prices would help reduce subsidies and restore the financial viability of key public utility companies, while lowering risks from contingent liabilities.
“Financial sector reforms should continue to advance, including effective resolution of ailing banks and reduction of overdue loans. Other structural reforms should focus on tackling governance issues and improving the business environment to support private investment and enhance competitiveness.
“Cameroon’s program continues to be supported by the implementation of supportive policies and reforms by the regional institutions in the areas of foreign exchange regulations and monetary policy framework and to support an increase in regional net foreign assets, which are critical to the program’s success.” Inner City Press last week – when the IMF did answer it on Yemen and Haiti – asked, “On Cameroon, gives the IMF’s references and reliance on the 2019 African Cup of Nations (CAF) football tournament which has now on November 30 been stripped from the country, what is the IMF’s comment and modified estimates on this development in Cameroon and the IMF’s program there?” We are still waiting, as as the IMF on December 17 answered when Inner City Press asked, ” I wanted to ask for IMF’s response, if you can, to this sent to Inner City Press from South Africa, that for her visit here there are no public events scheduled (?), and an information void? Substantively, does the IMF have a view of these loans / trends:
· in 2013, $5 billion from the China Development Bank, mainly for Transnet’s purchase of imported infrastructure inputs, especially for corrupt port-petrochemical expansion in Durban and a coal export rail line to Richards Bay (billions of rands were illicitly directed via China South Rail to the Gupta empire); and
· in 2016, $5 billion again from the China Development Bank, mainly for Eskom’s other coal-fired mega-generator, Kusile, initially arranged by Molefe and renewed at the BRICS Sandton summit last July.” The IMF answered, “Dear Matthew, Thank you for your question. Please be advised that Ms. Christine Lagarde, IMF Managing Director, will hold a press briefing with Mr. Lesetja Kganyago, Governor of the South African Reserve Banks, on Wednesday at 4 pm SA time (SARB premises). You will receive a media advisory tomorrow with further details.” Watch this site. Back in October the IMF published this blithe report on Cameroon: “An International Monetary Fund (IMF) team, led by Ms. Corinne Deléchat, visited Yaoundé during November 5-13, 2018 to conduct discussions on the third review of the program supported by the Extended Credit Facility (ECF) that was approved in June 2017.
At the end of this visit, Ms. Deléchat issued the following statement:
“The IMF team reached staff-level agreement with the authorities on economic and financial policies that could support approval of the third review of their three-year program under the ECF. The IMF Executive Board could consider the third review in mid-December 2018.
Source: Inner Press