Burkina Faso
Burkina Faso receives IMF funds

afrol News, 11 December  - The International Monetary Fund (IMF) yesterday gave its final approval of the US$ 7 million disbursement to Burkina Faso after it had found the country's Poverty Reduction Strategy Paper progress report providing "a sound basis" for concessional assistance.

The IMF on 30 November had completed its fourth review of Burkina Faso's performance under the program supported by the Poverty Reduction and Growth Facility Arrangement. After yesterday's final decision, Burkina Faso immediately is to draw US$ 7 million. So far, Burkina Faso had drawn about US$ 28 million under the arrangement.

Anne Krueger, the IMF's First Deputy Managing Director, earlier had stated that IMF program for Burkina Faso remained on track "despite an economic downturn in 2000, which trailed into the first half of 2001. All end-June and end-September 2001 performance criteria and benchmarks were observed." 

Ms. Krueger hailed the authorities for having "maintained a prudent fiscal policy in the face of a revenue shortfall. To achieve the programmed year-end revenue and budget deficit targets, they have reduced expenditure while protecting social outlays, and have raised taxes on petroleum products." 

Structural reforms were focusing on improving the performance of the cotton sector, pushing ahead with the privatisation program, and strengthening public finance management, the judicial system, and governance, according to an IMF assessment.

- An expected bumper cotton crop should boost growth this year and next, and help alleviate rural poverty, Krueger holds. "The authorities remain committed to fiscal consolidation, structural reform, and the fight against poverty." 

Krueger further hailed the Burkinabe authorities for vigorously pursuing the poverty reduction objectives set out in the programme. "They have prepared a progress report on the first-year implementation of the PRSP on the basis of extensive consultations with civil society and development partners." The IMF's Executive Board deemed the report to be an adequate basis for continuing concessional assistance to Burkina Faso. 

- Progress in social outcomes has been satisfactory, Ms. Krueger said, "and the authorities intend to steadfastly pursue their ambitious objectives. In particular, they intend to improve the planning, execution, and tracking of the poverty reduction strategy, notably by accelerating the commitment of available resources and energizing the monitoring unit in charge of tracking poverty-related outcomes." 

The African Development Fund (ADF) in November had approved a loan of US$ 30 million to finance the poverty reduction strategy support programme in Burkina Faso. The ADF loan was to be used to support public finance reforms for greater efficiency of public services in favour of the poor.

Sources: Based on IMF and afrol archives

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