The Executive Board of the International Monetary Fund, IMF Monday evening announced the Organization will disburse the sum of 226million US dollars, that is over FCFA 135billion to help the Government of Cameroon address the economic impact of the COVID-19 pandemic.
The amount was approved during the Board’s meeting Monday May the 4th and will be disbursed under the Rapid Credit Facility, RCF.
According to a release issued at the end of the Organization’s Executive Board meeting, the mony will help Cameroon address the numerous economic effects plaguing the nation, brought about by the outbreak of the deadly Coronavirus pandemic and terms of trade shocks.
“Cameroon is facing serious challenges from the twin Covid-19 pandemic and terms of trade shocks. Weak global demand, depressed commodity prices, and domestic containment measures weigh on the outlook, and are causing significant adverse economic and social effects. The shocks have given rise to substantial fiscal pressures and an urgent balance of payments need.” The Deputy Managing Director and Acting Chair, Mitsuhiro Furusawa said in a statement.
“Given the sudden and pressing nature of the shocks, accommodative fiscal and monetary policies are warranted to mitigate the human and economic impact of the outbreak.”
“IMF emergency financing under the RCF will support the government’s efforts to mitigate the impact of the twin shocks. Additional assistance from development partners will be critical to fill the remaining financing need.” Mr Mitsuhiro added.
He ended by enjoining the Government to ensure strict budgetary controls and transparency, needed to make sure the assistance meets its intended objectives.