Cameroon: CFAF 86 billion from IMF to mitigate the impact of COVID-19

The International Monetary Fund has approved a new disbursement of 156 million dollars (nearly 86 billion FCFA) for Cameroon to deal with the repercussions of the Coronavirus pandemic.

The financing ordered by the IMF is the second disbursement under the Rapid Credit Facility (FCR) aimed at helping Cameroon meet the urgent financing needs of its balance of payments resulting from the COVID-19 pandemic. Indeed, the reduction in external demand and the intensification of the economic effects of the health crisis have further deteriorated growth prospects and worsened the external and budgetary positions.

As a result, the urgent balance of payments financing needs caused by the pandemic have increased and the financing gap is now estimated at some CFAF 917 billion.

In this perspective, “the additional resources under the RCF will help meet urgent funding needs to mitigate the impact of the pandemic, including spending on health, social protection and support for the most vulnerable people, and will help to mobilize additional resources from donors, ”said Brettons Woods.

This envelope represents 40% of Cameroon’s quota for the FCR out of the $ 382 million, 100% of the quota, the total emergency aid granted to the country by the IMF since the beginning. of the pandemic.

To mitigate the impact of the pandemic on the production tool, the authorities have, among other things, decided to increase health and social spending and provide temporary support to affected businesses and households. Hence the option of a revised budget law providing for a higher deficit to take into account the repercussions of the crisis, establish a three-year pandemic prevention and response plan and set up a special COVID account.

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