Côte d'Ivoire
Yet another bank resumes cooperation with Côte d'Ivoire

afrol News, 4 April - Following the resumption of cooperation between Côte d'Ivoire and several key donors, such as the World Bank, IMF and European Union, the African Development Bank (ADB) today announced its "total" resumption of financial cooperation with the country. The ADB, Africa's leading financial development institution, is based in Abidjan, the Ivorian economic capital.

ADB was, not surprisingly, the last major institution to suspend its cooperation with Côte d'Ivoire as other finance institutions left the country due to mismanagement and later military dictatorship. This only happened after Côte d'Ivoire was not able to pay back its loans to ADB after the military coup in 1999 and the following drought in foreign funding. More surprisingly, ADB is among the last to resume normal contact with its host country, two years after participating in the international isolation of Côte d'Ivoire. 

The resumption was celebrated at the head office of the bank in Abidjan with the signing of a contract between ADB's President, Omar Kabbaj, and the Ivorian Minister of Economy and Finances, Paul Bouhoun Bouabré. Côte d'Ivoire was granted a loan of 21 billion francs CFA (32 million euros) at the occasion. Both emphasised the special importance of the event.

- This ceremony marks the total resumption of the cooperation with the ADF, Minister Bouabré was quoted by the French news agency AFP as saying after signing the agreement. ADF head Kabbaj revenged by stating that this type of budgetary support loan granted Côte d'Ivoire only was given "in exceptional circumstances."

The significant loan is intended to ease Côte d'Ivoire's debt handling and the budgetary situation. Kabbaj also assured his host country that this loan only was the beginning of a series of credits. A 160 billion Franc CFA (245 million euros) aid is envisaged for September, as part of the Initiative for the Heavily Indebted Poor Countries (HIPCs), headed by other financial institutions. The total limit of credits set aside for Côte d'Ivoire was at 172 billion Franc CFA (260 million euros), Kabbaj stated.

After this, Côte d'Ivoire had "returned to find its place within the international finance community," Minister Bouabré stated. The event was marked only weeks after similar symbolic acts with other major financial institutions and donors.

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 ADB, AFP. and afrol archives

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