Côte d’Ivoire: 2013 Article IV Consultation and Fourth Review Under the Extended Credit Facility Arrangement

Context: The socio-political situation has improved substantially since the 2011Article IV Consultation, but significant challenges remain. Boosted by a surge in publicinvestment, economic activity rebounded quickly from the post-election crisis in early2011. Since end-2011, the focus of policy has shifted from short-term crisis recovery toimplementation of policies to promote high and inclusive growth. Côte d'Ivoire reachedthe HIPC Initiative Completion point in 2012.Article IV discussions: The discussions focused on policies needed to achieve theobjectives of the government's 2012–15 National Development Plan (NDP): high growthand reducing poverty. Key policies are additional improvements in the business climateand governance, as well as further efforts to create fiscal space, reinforce the financialsector, and maintain external stability, while preserving the stable macroeconomicenvironment.Outlook and risks: The medium-term outlook is positive, with robust growth projectedin the years ahead. Sustained reform efforts remain needed to maintain high growthrates over the medium term, and improve Côte d'Ivoire's living standards, which havedeteriorated significantly since the late 1970s. A slowing down of reform efforts wouldresult in weaker economic growth. External risks include higher financing costs followingthe end of an accommodative monetary policy in the US.Exchange restrictions and regime: Côte d'Ivoire, a member of the WAEMU, hasaccepted the obligations under Article VIII and maintains an exchange system free ofrestrictions on the making of payments and transfers for current internationaltransactions. The WAEMU's exchange regime is a conventional peg to the euro.Program performance has been good: All quantitative performance criteria andindicative targets at end-June 2013 were met. While considerable progress was made inkey structural reform areas, a few structural benchmarks were met with delays, andothers missed.Staff supports the completion of the fourth review under the ECF and theauthorities' request for an increase in the program's limit on new nonconcessionalexternal debt to make room for the issuance of a Eurobond in an amountequivalent to US$500 million. Completion of the review will result in disbursement ofan amount equivalent to SDR 48.78 million under the ECF arrangement.