IMF Executive Board Approves a US$886.2 Million Disbursement to Côte d’Ivoire to Address the COVID-19 Pandemic
April 17, 2020
- The IMF approves the disbursement of US$886.2 million to Côte d’Ivoire to be drawn under the Rapid Credit Facility and the Rapid Financing Instrument.
- The economic impact of the COVID-19 pandemic is likely to be substantial, with the near-term outlook deteriorating quickly.
- The authorities’ policy response to the pandemic has been swift, drawing on a health emergency plan and an ambitious economic package to provide targeted support to vulnerable populations and firms affected by the pandemic.
– The Executive Board of the International
Monetary Fund (IMF) today approved a disbursement under
the Rapid Credit Facility (RCF)
equivalent to SDR 216.8 million (about US$295.4 million, or 33.3 percent of
quota), and a purchase under the
Rapid Financing Instrument (RFI)
equivalent to SDR 433.6 million (about US$590.8 million or 66.7 percent of
quota), total amount of about US$886.2 million, to help Côte d’Ivoire meet the urgent balance of payment needs
stemming from the outbreak of the COVID-19 pandemic.
Côte d’Ivoire is feeling the brunt of the Covid-19 pandemic. The 2020
economic outlook is expected to deteriorate substantially owing to the
sharp slowdown in activity among Côte d’Ivoire’s trading partners, the hit
to investors’ confidence, and the adverse economic impact of the needed
containment and mitigation measures deployed by the authorities.
The government’s response to the pandemic has been swift, with strong
social distancing and containment measures and an emergency health plan
supported by the World Health Organization. The authorities also announced
an ambitious economic plan of about 1½ percent of GDP for 2020 to prop-up
the income of the most vulnerable segments of the population through
agricultural input support and expanded cash transfers, provide relief to
hard-hit sectors and firms, and support public entities in the logistics
sectors to ensure continuity in supply chains.
The deteriorating macroeconomic outlook and fiscal policy response to
mitigate the impact of the pandemic on Côte d’Ivoire are generating fiscal
pressures and creating an urgent BOP need. The IMF support through RCF/RFI
financing would help fill part of the financing gap and catalyze other
Following the Executive Board discussion. Mr. Mitsuhiro Furusawa, Deputy
Managing Director and Chair, made the following statement:
“The COVID-19 pandemic is expected to have a considerable negative impact
on Côte d’Ivoire’s economy, creating fiscal pressures and an urgent balance
of payments need. The authorities swiftly adopted strong containment
measures which, while necessary, will also weigh on economic activity.
“To mitigate these adverse effects and cushion the fallout on the business
sector and hardship on families and communities, the authorities adopted a
health plan and a package of economic measures to prop the income of the
most vulnerable segments of the population through agricultural input
support and expanded cash transfers, provide relief to hard-hit sectors and
firms, and support public entities in the transport and port sectors to
ensure continuity in supply chains.
“In view of the severity of the pandemic, the envisaged temporary widening
of the fiscal deficit is appropriate, even if this means temporarily
breaching the 3 percent regional convergence criterion. Given the
substantial downside risks, additional spending reallocations would be
needed if tax revenue were to underperform compared to the current
projection. Covid-19 related expenditures should be executed transparently
and be well targeted to the most affected households and firms. Once the
crisis abates, the fiscal deficit should return to the pre-crisis path to
preserve the gains achieved under the IMF-supported program and medium-term
“The IMF emergency support under the Rapid Credit Facility and Rapid
Financing Instrument will help the authorities address the urgent fiscal
and balance of payments financing needs. It will also help catalyze
additional financing from other development partners. Additional donor
support is critical to close the remaining financing gap and preserve Côte
d’Ivoire’s substantial development gains over the past decade.”
IMF Lending Tracker (emergency financing request approved by the IMF
IMF Executive Board calendar
IMF Communications Department
PRESS OFFICER: Gediminas Vilkas
Phone: +1 202 623-7100Email: MEDIA@IMF.org