Central Africa: The resumption of disbursements for CEMAC countries

The International Monetary Fund (IMF) has lifted the suspension of disbursements that struck the CEMAC countries, due to mismanagement discovered at the Central Bank, through which passes the IMF financing.
The suspension measure, taken in May 28, 2010  have lasted three long months during which the Republic of Central Africa (RCA) was not allowed funding essential to the functioning of its administration, while the debt relief expected by the Congo has been delayed.

The Cameroon could have seized this opportunity to complete a program with the IMF as it wished, and gain valuable adjuncts, but its financial situation will require further reforms, before a possible financing of the Fund.

The resumption of disbursements for the CEMAC countries has surely brought back more serenity in the relations between the IMF and the Central Bank, and in the same time it has reassured the international community on the implementation of the plan of action and on the strategic choices of the Central Bank to restore its credibility. It is also noted that the Britton Woods institution has taken into account not only the implementation of specific measures contained in the plan of action, but also the fact that the suspension of disbursements was particularly detrimental to weakest countries  in post -conflict “.

For the record, this suspension of payments was duly motivated in a letter addressed by Antoinette Sayeh, the IMF director of the African department. She was indicating that the problems of management were almost as grave as those who were known under the previous governors of the Central Bank. She quoted “dysfunctions” such as the absence of documentary evidences in spending hundreds of billions of CFA Francs, doubted on the efficiency of control of the foreign-exchange transactions, and dreaded consequently «the risk of a major problem in savings”.

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