The International Monetary Fund (IMF) has reached a staff-level agreement with Burkina Faso on the second review of the Extended Credit Facility (ECF) arrangement. This announcement was made following discussions held by an IMF team led by Martin Schindler, Mission Chief for Burkina Faso, during meetings in Ouagadougou and Washington.
The ECF arrangement, approved by the IMF Executive Board on September 21, 2023, amounts to SDR 228.76 million, approximately US$ 302 million. Mr. Schindler stated that the agreement "could support the approval of the second review of the program under the ECF arrangement." If approved by the IMF Executive Board in December 2024, it would enable a disbursement of about US$ 32 million.
Burkina Faso faces challenges due to its security situation, affecting its economic growth outlook despite resilience in sectors like services. The projected GDP growth rate for 2024 is expected at 4.2 percent. The Burkinabè authorities have been commended for their efforts in macroeconomic reforms amid these challenges.
Most quantitative indicators and structural benchmarks have been met, including progress on controlling public wage bills and energy subsidies. The authorities aim to reduce their fiscal deficit to around 5 percent of GDP in 2024 and gradually decrease it to 3 percent by 2027.
Efforts will also continue in fiscal governance improvement and expanding social protection measures. Discussions included potential reforms on energy subsidies and initial talks on a future RSF arrangement.
An audit under the IMF's Food Shock Window showed contributions towards alleviating food insecurity vulnerabilities. A final report on this program will be provided by Burkinabè authorities.
The IMF expressed gratitude for constructive discussions with key figures including Hon. Aboubakar Nacanabo, Minister of Economy and Finance, BCEAO National Director Armand Badiel, senior government officials, private sector representatives, and development partners.