THE IMF IS ASKING GABON TO TIGHTEN ITS BELT. LE FMI DEMANDE AU GABON DE SERRER LA CEINTURE
approached by Gabon, the IMF lays down its conditions
A mission of the International Monetary Fund (IMF) is expected in Gabon. The challenge is to resolve the disagreements arising from the Economic Recovery Plan (ERP), prior to any disbursement by the international institution.
In fact, beyond the promise of the need to contain the national payroll (estimated at 506 billion CFA francs according to the Directorate-General of Budget and Public Finance), the IMF mainly wants to contain public investment by insisting on reducing the deficit, before signing a loan program. In a situation of liquidity stress, the country may opt to draw on the fiscal reserves held at the BEAC but without a viable long-term horizon. The option of the multilateral institutions is also on the table with 130 billion CFA francs (200 million euros) granted to the country by the African Development Bank (ADB) in a budget support plan 2016-2017 that will reach 500 million euros.
Despite diversification efforts under the Emerging Gabon Plan, hydrocarbons account for about 40% of GDP, 45% of government revenue and about 85% of the country's exports.