The Executive Board of the International Monetary Fund (IMF) approved, on April 20, an emergency disbursement in the amount of 27.85 million special drawing rights, the equivalent of approximately $ 38 million ( or 25% of the quota) in favor of the Central African Republic.
These funds will help the country meet its urgent balance of payments needs and support the authorities’ efforts to contain the spread of Covid-19 and limit its economic and social impacts.
According to the institution, the Covid-19 pandemic is severely affecting the economy of the Central African Republic. The strong global economic recession and the closing of borders with neighboring countries have already led to a significant reduction in economic activity; sectors such as commodity exports, trade and construction being particularly affected.
For IMF Deputy Managing Director Mitsuhiro Furusawa, “a temporary widening of the budget deficit is justified in the short term to allow the implementation of the response plan while continuing to meet the considerable social, infrastructural and security needs of the Central African Republic. After remaining at a relatively sustained level of 3.8% in 2018 and 4% in 2019, economic growth in the Central African Republic is expected to fall to 1.0% of GDP according to IMF projections.
