Journal Issue

Côte d’Ivoire: Request for Three–Year Arrangement Under the Poverty Reduction and Growth Facility

International Monetary Fund
Published Date:
April 2009
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I. Relations with the Fund

(As of February 28, 2009)

I. Membership Status: Joined March 11, 1963; Article VIII

II. General Resources Account:SDR millionPercent Quota
Fund holdings of currency405.74124.76
Reserve position in Fund0.760.23
Holdings exchange rate
III. SDR Department:SDR millionPercent
Net cumulative allocation37.83100.00
IV. Outstanding Purchases and Loans:SDR millionPercent Quota
PRGF arrangements40.9812.60
Post-Conflict Emergency Assistance81.3025.00
V. Latest Financial Arrangements:
Date ofExpirationAmount ApprovedAmount Drawn
TypeArrangementDate(SDR million)(SDR million)
VI. Projected Payments to Fund:4
(SDR million; based on existing use of resources and present holdings of SDRs):
VII. Implementation of HIPC Initiative:
I. Commitment of HIPC assistance
Decision point dateMarch 1998
Assistance committed by all creditors345.00
(US$ million)5
Of which:
IMF assistance in US$ million22.50
SDR equivalent in millions16.70
Completion point date--
II. Disbursement of IMF assistance (SDR million)
Assistance disbursed to the member--
Interim assistance--
Completion point balance--
Additional disbursement of interest income6--
Total disbursements--

VIII. Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable

Decision point - point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.

Interim assistance - amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).

Completion point - point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).

IX. Safeguards Assessments:

The Central Bank of West African States (BCEAO) is the common central bank of the countries of the West African Economic and Monetary Union, which includes Côte d’Ivoire. The most recent safeguards assessment of the BCEAO was completed on November 4, 2005. The assessment indicated progress has been made in strengthening the bank’s safeguards framework since the 2002 assessment and identified some areas where further steps would help solidify it.

The BCEAO now publishes a full set of audited financial statements and improvements have been made to move financial reporting closer to International Financial Reporting Standards (IFRS). Furthermore, an internal audit charter has been put in place, mechanisms for improving risk management have been established, and follow-up on internal and external audit recommendations has been strengthened.

The results of continuous safeguards monitoring indicate that while certain vulnerabilities remain in internal control systems and legal structure, there has been some progress in other areas, including through: (i) improving the external audit process by adopting a multi-year audit program; (ii) establishing an audit committee; (iii) expanding disclosures on financial positions of WAEMU countries with the Fund in the notes to the annual financial statements; and (iv) further strengthening of the effectiveness of the internal audit function.

X. Exchange Arrangements:

Côte d’Ivoire is a member of the WAEMU; the exchange system, common to all members of the union, is free of restrictions on payments and transfers for current international transactions. The common currency, the CFA franc, is pegged to the euro at the rate of €1 = CFAF 655.957.

XI. Article IV Consultation:

Côte d’Ivoire is on the standard 12-month Article IV consultation cycle. The Executive Board completed the 2007 consultation on August 3, 2007.

XII. Technical Assistance:


2007Public Debt ManagementDiagnostic mission, identification of needs.
(January 2007)
(August 2007)Mid-term debt strategy and debt sustainability.
(September 2007)Debt management and HIPC Initiative
Public Expenditure ManagementDiagnostic mission, identification of needs.
(February 2007)
Public Finance StatisticsDiagnostic mission, identification of needs.
(February 2007)
Tax administrationDiagnostic mission on ongoing reforms.
(August 2007)
MicrofinanceSupport of Microfinance Directorate.
(May and August 2007)
(October 2008)
National Accounts (August 2007)Techniques of measurement of certain services in national accounts. Review of deflators.
Customs administrationCombating fraud.
(August 2007)
Financial supervision and regulation (September-October 2007)Propose analysis methods of financial statements. Personnel training.
2008Public Expenditure Management (February 2008)Assessment of integrated budget execution information system.
Customs AdministrationCombating fraud.
(March 2008)
Public Finance StatisticsPreparation of GFS metadata.
(March 2008)
National Accounts (April 2008) National Accounts (August 2008)Assess work program of the National Statistical Office. Review choice of base year (2006) for compilation of National Accounts estimates.
2009Public Expenditure Management (March-April, 2009)Interface budget execution (SIGFIP) and accounting (ASTER).
Government finance statistics (March 2009)Training in use of GFS methodology.
Customs administration (February 2009)Control of value and origin, ex-post inspection, and customs surveillance.
B. Headquarters
Fiscal AffairsDecember 2001Public Expenditure Management.
Fiscal AffairsFebruary/March 2008Petroleum pricing and taxation.
March 2008Customs administration.
February/March 2009Tax administration.
Monetary and Capital MarketsOctober-December 2007Regional FSAP.

XIII. Resident Representative:

A Fund resident representative was posted in Abidjan in January 2007 after an interruption of one and a half years.

II. Joint Bank-Fund Work Program, 2009

(As of February 28, 2009)

TitleProductsProvisional timing of missionsExpected delivery date
A. Mutual information on relevant work programs
World Bank work program in the next 12 monthsOperations:
1. DPO—Economic Governance and Recovery Grant IISeptember 2008March 2009
2. Emergency Electricity Rehabilitation ProjectOctober 2008; February 2009May 2009
3. Emergency SME Revitalization and Governance ProjectJune 2009
Economic and Sector Work
Post-Conflict Environmental AssessmentMarch 2009
Education Country Status ReportMarch 2009
Health Country Status ReportJuly 2009
Technical assistance/other analytical
PEMFAR follow-up
Economic and Poverty Monitoring
PSIA impact of possible new electricity tariff structuresQ2 2009
Competition in cocoa marketing and improving farmers’ incomesQ3 2009
Review of agricultural export crop subsectorsQ3 2009
Private Sector Development Reengagement Dialogue/TADecember 08 - June 09
IMF work program in the next 12 monthsNew PRGF arrangementFebruary 4-11, 2009March 2009 (SR and Board)
First review under PRGF and Article IV consultationAugust 2009September 2009 (SR and Board)
Second review under PRGFFebruary 2010March 2009 (SR and Board)
Technical assistance:
Tax/customs administration follow-up20092009
Public financial management follow-up PEMFARQ2 20092009
Microfinance supervision, AFRITAC West; Anti-money laundering/FT frameworkQ2 20092009
Statistics: public finance, real sector, and BoP, AFRITAC-West2009
B. Requests for work program inputs
Fund requests to Bank•Periodic updates on budget implications of electricity sector and financial sector reformOngoing
Bank request to FundRegular updates on macro-economic and fiscal projectionsOngoing
C. Agreement on joint products and missions
Joint Bank-Fund products in the next 12 monthsJSAN on full PRSPMarch 2009 (Board)
HIPC Decision Point document including LIC DSAMarch 2009 (SR, Board)
FSAP and assistance with Financial Sector StrategyMay 2009August 2009

III. African Development Bank Group Operations Strategy

1. Bank Group Portfolio and Management. Of a total of 49 operations approved since the start of intervention in Côte d’Ivoire,7 for a net commitment of UA1.030 million, the current project portfolio comprises two active operations, namely the National Good Governance and Capacity Building Program (PNBGRC) financed with a UA3.7 million ADF grant and the Institutional Support to the national Crisis-Exit Program financed with a UA20.0 million ADF grant. The PNBGRC is an institutional support project whose activities will contribute to improving governance and capacities of several ministries. Specifically, its purpose is to (i) contribute to improving the functioning of the legal system; (ii) strengthen structures and institutions involved in the decentralization process; and (iii) support public resources management capacity. Several activities are under implementation within this project including: (i) creation of a Geographical Information System (GIS) in 11 communes; (ii) support to the Accounts Chamber and (iii) training of magistrates and other staff within the judiciary system. The project is expected to be finalized in 2009. As regards the Institutional support to the national crisis-exit program, 56 percent of project funds were disbursed as of end-December 2008. It is noteworthy that several activities have already been completed under this second project, including: (i) launching the tender for equipment for students and teachers from the Center, North and West (CNW) zone; (ii) purchasing equipment for health centers; (iii) earmarking of the health centres to be rehabilitated; and (iv) elaborating an action plan for capacity building to assist women who are victims of domestic violence.

2. Portfolio management. The current projects have been seriously affected by the crisis arising from the suspension of disbursements starting in February 1 2003. Following discussions with an Ivoirien delegation in Tunis in July 2004 and July 2005, the AfDB began canceling the balances of 10 operations in accordance with its procedures. As of February 2007, the total amount cancelled was UA65.7 million. However, following several requests from the Ivorian government in 2008, the AfDB has not made any further cancellations because there is strong hope of resumption of financial cooperation with Côte d’Ivoire in early 2009. In light of the renewal of full cooperation since March 2009, the AfDB is envisaging a portfolio restructuring exercise in the second quarter of 2009. Although loan disbursements have been suspended because of arrears accumulation, the AfDB has continued to implement operations financed with grants, among which the two above-referenced active operations as well as studies for the formulation of the irrigation development plan, the road toll and weighbridge study plan, and the Agneby plan, which have been completed.

3. Status of Arrears to the AfDB Group and payment schedule. As of the cut-off date of end-April 2007, Côte d’Ivoire’s arrears vis-à-vis the Bank Group stood at UA352.25 million. Under the AfDB’s Fragile State Facility (FSF) mechanism, adopted by the Board of Directors in March 2008, Côte d’Ivoire has been earmarked as a Fragile State and can benefit from a two-tier burden sharing, whereby a maximum of 1/3 of the arrears burden will be borne by the country and a minimum of 2/3 under the Arrears Clearance Window of the FSF.

Projected Reimbursements by Côte d’Ivoire in UA (millions) at end-December 20081
ADB TOTAL45.5731.8224.7019.92122.01
ADF TOTAL2.532.983.053.5712.12
OVERALL TOTAL48.1034.8027.7523.49134.14

Figures are subject to exchange rate fluctuations.

Figures are subject to exchange rate fluctuations.

4. Steps by the AfDB to facilitate arrears clearance. After arrears were cleared in early 2002, the Board approved an interim strategy under ADF-VII on April 3, 2002, but the strategy could not be implemented since arrears began accumulating again in February 2003. Hence, in conformity with its Sanctions Policy, the AfDB suspended all disbursements on loans, and no operations were approved under ADF-IX and ADF-X. However, the AfDB maintained a continued dialogue with the government in order to find a solution to the arrears problem. During several consultative missions, the Ivoirien authorities reaffirmed their commitment to stabilize arrears and stay current on maturities.

5. On April 28, 2007, the Ivoirien authorities and the Bank came to an agreement on the modalities of an arrears clearance scheme, which was concluded under the AfDB’s previous Post-Conflict Countries Facility (PCCF) framework, replaced since March 2008 by the Fragile State Facility (FSF). The agreed arrears clearance scheme entailed moving the cut-off date from end-December 2003 to end-April 2007, effective arrears clearance in April 2008 and start of payment of the maturities falling due between May 2007 and April 2008 no later than September 2007 and in full by April 2008. By this date, Côte d’Ivoire was to pay 1/3 of arrears outstanding as of the cut-off date of April 2007. In spite of domestic financial constraints, principally linked to the financing of crisis-exit programs, the government has made notable efforts in staying current with its maturities between end-April 2007 and has cleared its share in arrears with the AfDB in early March 2009.

6. Strategy for reengagement by AfDB in Côte d’Ivoire. On March 6, 2009, sanctions were lifted on the country, following the clearance of arrears by the country vis-à-vis the Bank Group. The AfDB’s reengagement strategy focuses on contributing to help the country out of its current situation of fragility. AfDB’s focus for 2009–10 will be to provide support to the government for strengthening governance, including through capacity building and developing economic infrastructure to reinforce regional integration. The AfDB reengagement strategy was approved by its Board of Directors on March 6, 2009.

IV. Statistical Issues

1. While adequate for surveillance purposes, and the authorities have generally provided the required statistical indicators to the Fund (see attached table) on a timely basis, there are weaknesses in the areas of national accounts, balance of payments, and public finance, and in conciliation of fiscal and monetary data. Côte d’Ivoire has participated in the General Data Dissemination System (GDDS) since May 2000, but the metadata posted on the Data Standards Bulletin Board have not been updated since June 2001.

Real sector statistics

2. The authorities have published comprehensive national accounts data for 1987–95 using 1986 as the base year and a new set covering the period 1996–2006 aligned with the 1993 System of National Accounts using 1996 as the base year. Technical assistance (TA) on national accounts has been provided by AFRITAC West in August 2007 and August 2008 covering several topics including a review of implicit deflators. A harmonized consumer price index (CPI) (base 1996) has been adopted by all members of the West African Economic and Monetary Union (WAEMU). There are no regular publications on wages and employment.

Public finance statistics

3. The Ministry of Finance has reported data up to 2007 for publication in the Government Finance Statistics Yearbook. The authorities do not provide monthly or quarterly fiscal data for publication, but the Ministry of Finance has generally made available to the IMF African Department detailed monthly government finance data. Documentation on the coverage of general government units and public enterprises is lacking. While the government has committed to addressing this weakness and making a comprehensive effort to reconcile fiscal and monetary data, there has been little progress to date. Deficiencies in the recording of expenditures undermine sound fiscal reporting.

Monetary and financial statistics

4. Monetary data for Côte d’Ivoire are prepared by the national agency of the Central Bank of West African States (BCEAO) and officially released by BCEAO headquarters. Some of the problems with monetary statistics are common to all eight member countries of the WAEMU; others are specific to systemic issues in Côte d’Ivoire’s bank and nonbank financing of the operations of the central government and the rest of the public sector. There has been improvements in the timeliness of depository corporations and interest rate data. The authorities now report monetary data to the IMF Statistics Department (STA) regularly, and the lag has been reduced from about six months to four or less. The BCEAO has also improved the estimates of currency in circulation in each WAEMU member country by addressing the large backlog of unsorted banknotes held by the BCEAO’s national agencies. In 2005 the BCEAO made substantial revisions to the estimates of banknotes in circulation in member states resulting from cross-border banknote movement. These revisions were due to changes in the method of estimating currency in circulation in the WAEMU. The revised method, based on updated sorting coefficients (initially established in 1990), has been applied retroactively from December 2003. The BCEAO is using sorting coefficients to evaluate the amounts of currency issued by each country, which in turn are used to estimate currency in circulation and to adjust the net foreign assets of each member country.

5. A monetary and financial statistics mission visited BCEAO headquarters in May 2001, and STA participated in a BCEAO-sponsored seminar on monetary statistics in April 2003. In these regional forums STA reviewed with BCEAO representatives methodological issues that concern WAEMU member countries and discussed the BCEAO’s plans to adopt the Monetary and Financial Statistics Manual.

Balance of payments

6. Since December 1998 responsibility for compiling and disseminating balance of payments statistics has been formally assigned to the BCEAO by legislation adopted by all WAEMU member countries. The national agency of the BCEAO in Abidjan is responsible for completing and disseminating the balance of payments statement while BCEAO headquarters delineates the methodology and calculates international reserves managed on behalf of participating countries. Data consistency has significantly improved over the past few years with the full transition to the Balance of Payments Manual, Fifth edition (BPM5), improved sourcing methods, and the training of staff. The BCEAO national agency disseminates balance of payments statistics with a seven months lag, longer than the recommendation of the GDDS, as well as annual international investment position data. External sector data are reported regularly to STA for publication.

7. Regarding trade, the customs computer system allows for satisfactory monitoring of trade data, but the coverage of services and transfers (especially worker remittances) needs to be improved.

8. Concerning the financial accounts, foreign assets of the private nonbanking sector are not adequately covered. Reporting of private capital flows, especially foreign direct investment in Côte d’Ivoire, is unsatisfactory. There is also not sufficient information on private debt stocks and debt service flows.

9. The new BCEAO compilation system allows commercial banks to report data on payments involving nonresidents. The balance of payments compilers receive payment statements every 10 days. However, the information is used not in compilation of the annual balance of payments but to support data quality controls and provide for early information to the BCEAO authorities.

CÔted ’Ivoire: Table of Common Indicators Required for Surveillance(As of March 12, 2009)
Date of latest observationDate receivedFrequency of Data6Frequency of Reporting6Frequency of Publication6
Exchange RatesCurrentCurrentMMM
International Reserve Assets and Reserve Liabilities of the Monetary Authorities112/0802/09MMM
Reserve/Base Money12/0802/09MMM
Broad Money12/0802/09MMM
Central Bank Balance Sheet12/0802/09MMM
Consolidated Balance Sheet of the Banking System12/0802/09MMM
Interest Rates203/0903/09IMM
Consumer Price Index12/0802/09MMM
Revenue, Expenditure, Balance and Composition of Financing3 - General Government412/0802/09MMM
Stocks of Central Government and Central Government-Guaranteed Debt512/0802/09MMM
External Current Account Balance12/0802/09AAA
Exports and Imports of Goods and Services12/0802/09AAA
Gross External Debt12/0802/09MMM

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I); and not available (NA).

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I); and not available (NA).


When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.


Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.


Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.


Not including four projects initiated by the private sector, for a total of UA33 million.

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