Central African Republic: 2023 Article IV Consultation and request for a 38-month arrangement under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Central African Republic

This paper presents Central African Republic’s (CAR) 2023 Article IV Consultation and Request for a 38-Month Arrangement under the Extended Credit Facility (ECF). The ECF-supported program will help meet CAR’s protracted balance of payments needs, sustain priority spending on basic public services in health and education, and provide a policy framework to advance key reforms. The program is part of a coordinated effort by international financial institutions that aims to support the people of CAR and avert a humanitarian crisis. The program contains important governance safeguards for the use of IMF resources. Continued financial and technical support from development partners remains critical to the program’s success. Given its high risk of debt distress and limited revenue base, CAR will have to continue its effort to mobilize grants to finance its economic needs. Close cooperation with international partners on humanitarian assistance is also essential for supporting the population. CAR’s economic program will continue to be supported by the implementation of policies and reforms agreed among the Central African Economic and Monetary Community regional institutions, which notably aim at supporting an increase in regional net foreign assets and which are ultimately critical to program’s success.