The Executive Board of the International Monetary Fund (IMF) today approved a disbursement of SDR 110.4 million (about US$ 156 million, 40 percent of quota) under the Rapid Credit Facility (RCF).
This is the second emergency disbursement to the country since the onset of the COVID-19 pandemic, bringing total IMF emergency support since the outbreak of the pandemic to SDR 276 million (about US$ 382 million, 100 percent of quota).
The new emergency disbursement will help Cameroon meet its urgent balance of payments and fiscal needs.
Since the approval of the first Rapid Credit Facility (RCF-1) request on May 4, 2020, weaker external demand in major trading partners and a more pronounced impact of containment measures to slow the rising number of COVID-19 cases have further deteriorated growth prospects and worsened Cameroon’s external and fiscal positions.
As a result, urgent balance of payments needs arising from the pandemic have increased, with the financing gap now estimated at about CFAF 917 billion (Ghs 9.7 billion). The additional disbursement under the RCF will help address urgent financing needs to mitigate the impact of the pandemic.
The authorities have been proactive in responding to the COVID-19 pandemic and are stepping up their efforts to contain the spread of the disease, boost health and social protection spending, and provide temporary support to affected businesses and households.
In that regard, they adopted a series of measures including a revised budget with a larger deficit to accommodate automatic stabilizers and crisis-related emergency spending; a three-year preparedness and response (P&R) plan against the pandemic; and they created a COVID Special Account.
Following the Executive Board’s discussion on Cameroon, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, issued the following statement: