IMF Approves $666 Million Extended Credit Facility for Cameroon

(Bloomberg) -- The International Monetary Fund has approved an extended credit facility of $666 million for Cameroon.

The three-year program is expected to help the West African nation restore external and fiscal sustainability and lay the foundations for sustainable, private sector-led growth, the Washington-based lender said in an emailed statement Monday.

State revenue in the oil producer has plunged due to a fall in commodity prices since 2014 and attacks by Boko Haram in the northern parts of the country. While the government forecasts economic growth of 4.9 percent for this year, the IMF projects expansion will slow to 4 percent from 4.7 percent in 2016.

“The Cameroonian economy is now facing decelerating growth, declining fiscal and external buffers, and rapidly-rising public debt,” IMF Deputy Managing Director Mitsuhiro Furusawa said in the statement. “The authorities’ fund-supported program appropriately aims at addressing Cameroon’s large balance of payments need and restoring fiscal and external sustainability.”

About $171.3 million will be available immediately and the remainder will be disbursed over the duration of the program pending semi-annual reviews, the IMF said.