Central African Republic

The program of economic policies and reforms implemented under the three-year ECF arrangement that expired in July helped to restore growth, reduce fiscal and external imbalances, and strengthen public administration. While the peace agreement was signed last February, its implementation has been slow, reflecting in part the lack of ownership by some of the armed groups. Overall, the C.A.R. remains in a very fragile situation, with a volatile security environment, limited administrative capacity, poor governance, and lack of social cohesion. To help address the country’s protracted balance of payment financing needs in this challenging environment, the authorities have requested a new three-year arrangement under the ECF for an amount of SDR 83.55 million (75 percent of quota).