Via IMF (Den Internationale Valutafond)

IMF Executive Board Completes the Fourth and Fifth Reviews Under the Extended Credit Facility (ECF) Arrangement and Approves the Disbursement of US$51.28 Million for Burkina Faso

November 13, 2020

  • The Executive Board decision allows an immediate disbursement of US$51.28 million.
  • ECF program performance was satisfactory despite being hampered by the COVID-19 pandemic and the security crisis.
  • Burkina Faso has also benefited from a second tranche of debt service relief of around US$14.52 million, provided by the IMF Catastrophe Containment and Relief Trust (CCRT).

Washington, DC:
The Executive Board of the International Monetary Fund (IMF) today
completed the fourth and fifth reviews of Burkina Faso’s economic program
under the Extended Credit Facility (ECF). Completion of these reviews,
which constitute the last two under the ECF-supported program, unlocks
access to SDR 36.12 million (about US$51.28 million),
total disbursements under the arrangement to SDR 108.36 million (about

US$152.58 million). Burkina Faso’s three-year ECF arrangement was approved
by the IMF Executive Board on March 14, 2018. It aims at maintaining
macroeconomic stability, reducing poverty and creating fiscal space for
priority spending.

The Executive Board also approved the authorities’ requests for a waiver
for the nonobservance of the program performance criterion on the ceiling
on net domestic financing of the government and rephasing of access for the
fifth review to make the sixth disbursement available on November 13, 2020.

In addition, Burkina Faso has benefited from a second tranche of debt
relief on its debt service falling due to the IMF from October 14, 2020 to
April 13, 2021 (SDR 10.3 million or about US$ 14.52 million), in
the form of grant assistance under the Catastrophe Containment and Relief
Trust. This relief follows that granted for debt service due between April
14 and October 13, 2020 (about US$12 million).

The economic impacts of the global and domestic measures to contain the
COVID19 pandemic have been stronger than expected. Real GDP is expected to
contract by 2.8 percent in 2020, compared to a forecast of 6.0 percent
expansion prior to the pandemic. The fiscal deficit in 2020 is expected to
widen to about 5.3 percent of GDP, to accommodate an effective response to
the fallout from COVID19 and security shocks. The main risks to the outlook
are the uncertainty surrounding the duration of the pandemic and the
ongoing security crisis.

Following the Executive Board’s discussion on Burkina Faso, Mr. Mitsuhiro
Furusawa, Deputy Managing Director and Acting Chair, issued the following

“The COVID19 pandemic and the security crisis continue to negatively impact
Burkina Faso’s economy. The authorities took swift actions to contain the
spread of the pandemic, and implement accommodative fiscal measures,
including additional healthcare spending and support for vulnerable
households and affected businesses. Performance under the ECF-supported
program has been satisfactory despite the challenging policy environment.

“A widening of the fiscal deficit in 2020 and 2021 is warranted to
accommodate the COVID19 spending, additional security needs, and
post-COVID19 recovery. Such spending should be cost-effective and
appropriately targeted, while safeguarding macroeconomic stability and debt
sustainability. In addition, efforts should focus on boosting domestic
revenue mobilization, which was affected by the large contraction in
economic activity.

“Good governance remains of paramount importance, including in the context
of emergency spending related to COVID19.

In this regard, the authorities published asset declarations by members
of the government and completed an audited report on COVID19-related
expenditures at end-June 2020. They have also committed to publish
further reports along with all pandemic-related procurement contracts
and their beneficial owners.

Shortfalls noted in the report on spending at end-June 2020 should be
expeditiously addressed.

“Addressing the security crisis and promoting higher and inclusive growth
will remain crucial for Burkina Faso over the medium term. Consequently, a
gradual return of the fiscal deficit to the regional target of 3 percent of
GDP (2024 – one year later than the regional goal) is important and will
preserve policy space to balance the growth impact and the fiscal
adjustments related to shocks associated with security and pandemic
spending needs.

“The authorities should make efforts to promptly adopt and implement the
necessary reforms to put the wage bill on a sustainable path.”

More information

IMF Lending Tracker (emergency financing request approved by the IMF
Executive Board)

IMF Executive Board calendar

IMF Communications Department

PRESS OFFICER: Gediminas Vilkas

Phone: +1 202 623-7100Email:


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