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afrol News, 16 May - The French Development Agency (AFD) has granted a structural adjustment loan worth Franc CFA 120 billion (euro 183 million), the government newspaper 'Fraternité Matin' made public today. The AFD thus re-engages in Côte d'Ivoire after a three-year absence. The French agency is the last in a row of financial institutions to re-engage in Côte d'Ivoire. Banks abandoned the country after the military coup in 1999, but over the last half year have returned as democracy has been restored and the new government is implementing structural reforms under the guidance of the World Bank and the International Monetary Fund (IMF). Paul Bouhoun Bouabré, Ivorian Economy and Finance Minister, was quoted saying he was "happy that one could conclude these discussions with France to obtain these conditions to finance our economy." He further said that the interest rate of the loan was set at 0.41 percent, with a repayment duration of ten years. AFD Secretary-General, Jean-Michel Sévérino, at the signing had said that the agency's re-engagement was a "significant act and a sign of the total restoration of relations between Côte d'Ivoire and the international financial community." He further indicated that the agency had in mind to contribute to the Ivorian debt cancellation later this year. The development agency is in fact one of the last to resume full cooperation with Côte d'Ivoire. On 4 April, the African Development Bank - Africa's leading financial development institution - announced its "total" resumption of financial cooperation with the country. On 15 March, Ivorian Prime Minister Affi N'Guessan, met with the European Union's Commissioner for Development, Poul Nielson, in Brussels, and was informed that the EU would increase its macro-economic support for Côte d'Ivoire this year to 56 million euros. The EU had decided to gradually resume cooperation in June 2001, and N'Guessan could note a total normalisation in his country's relationship to the EU after the meeting. On 1 February, the World Bank announced its was re-engaging in Côte d'Ivoire, paving the way for the resumption of disbursements on already approved credits and the approval of new credits. The World Bank's assistance program in Côte d'Ivoire includes much-needed credits for education, health, agriculture, finance and infrastructure, as well as policy lending. The Bank announced it would provide new resources through an Economic Recovery Credit (ERC) and a multi-sector HIV/AIDS operation of about 250 million euro and 60 million euro respectively. The International Monetary Fund (IMF) in November last year agreed to discuss with the Ivorian government a three-year programme to reduce poverty and spur economic growth in Côte d'Ivoire. On 27 March, the IMF approved in principle a 440 million euro loan to fight poverty and promote economic growth. This loan was strongly dependent on various policy conditions (structural reforms), although other credits in principle also are conditional.
Sources: Based on AFD, press reports and afrol archives
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