IMF国际货币组织全球-Burkina-Faso_Requests-for-Disbursement-Under-the-Rapid-Credit-Facility-and-Rephasing-of-Access-Under-the-Extended-Credit-Facility_42页_789kb

IMF Country Report No. 20/130: Burkina Faso Summary

Core Content

This document outlines the International Monetary Fund (IMF) response to the economic challenges faced by Burkina Faso due to the dual shocks of the security crisis and the COVID-19 pandemic. The IMF approved a US$115.3 million disbursement under the Rapid Credit Facility (RCF) to support the country's efforts in containing the virus, addressing the socio-economic impact, and maintaining macroeconomic stability. Additionally, Burkina Faso received debt service relief under the Catastrophe Containment and Relief Trust (CCRT), which could be extended for up to two years.

Main Views and Key Information

1. Economic Impact of the Pandemic and Outlook

• Growth decline: The economic outlook for Burkina Faso deteriorated sharply due to the pandemic. The 2020 growth forecast was revised down by 4 percentage points to 2%, compared to previous projections.
• Inflation: Inflation is expected to rise above 2% in the medium term, driven by reduced agricultural activity and disrupted supply chains, leading to higher food prices.
• Current account deficit: The current account deficit is projected to widen, as gold and cotton production/export are disrupted, and remittances and tourism decline.
• Downside risks: The risks are significant, including potential economic and health impacts from the pandemic, heightened security threats affecting mining, cotton production, tourism, and investment, and the uncertainty around the November 2020 elections.

2. Government Response and Fiscal Measures

• Emergency measures: The Burkinabe government implemented measures such as nationwide curfews, school closures, suspension of public gatherings, and closure of borders to contain the virus.
• Healthcare spending: The government has increased health and social spending, including free testing, care for the infected, and preventive care.
• Tax relief: The authorities are considering tax relief measures for SMEs and other affected sectors, including lower import duties and VAT, delayed tax payments, and accelerated depreciation.
• Fiscal deficit: The pandemic and security crisis have led to a wider fiscal deficit, projected at 5% of GDP in 2020, compared to 2.7% previously. The IMF supports a temporary relaxation of the deficit and encourages coordination with the WAEMU authorities to adjust fiscal convergence criteria.

3. IMF Support and Financing

• RCF disbursement: The IMF approved a SDR 84.28 million (about US$115.3 million) disbursement under the Rapid Credit Facility, covering 39% of the estimated external financing gap.
• Debt service relief: Burkina Faso received US$11.9 million in debt service relief from the CCRT, with the possibility of extending this support for up to 2 years.
• Program rephasing: The fourth review under the Extended Credit Facility (ECF) could not be completed on the original schedule due to the pandemic, so the fifth disbursement was rephased to July 20, 2020.

4. Challenges and Recommendations

• Balance of payments needs: The country faces urgent balance of payments needs, driven by healthcare, social protection, and macroeconomic stabilization efforts.
• Need for external support: The IMF emphasizes the urgent need for additional external support, preferably in the form of grants, to meet the elevated financing needs and preserve macroeconomic stability.
• Policy adjustments: The IMF recommends that fiscal measures should be targeted and temporary, and that investment and development spending should be scaled up once the pandemic subsides.

Key Tables and Data

• Text Table 1: Revised macroframework for 2018–2022 shows a decline in real GDP growth to 2% in 2020 and an increase in inflation.
• Text Table 2: Fiscal financing requirements for 2018–2021 show a wider fiscal deficit and lower revenue mobilization due to the pandemic and security crisis.

Conclusion

The IMF's support is critical in helping Burkina Faso address the dual challenges of the security crisis and the COVID-19 pandemic. The disbursement under the RCF and the debt service relief under the CCRT will provide much-needed resources to support the government's response. The IMF also encourages temporary fiscal measures, donor coordination, and policy flexibility to ensure long-term macroeconomic stability and debt sustainability.