The IMF Managing Director Christine Lagarde met on Thursday with officials of the Bank of Central African States (BEAC) in response to the sharp decline in oil prices in 2014.
Lagarde met with Mr. Abbas Mahamat Tolli, Governor of the Bank of Central African States (BEAC), and other high-level officials of BEAC.
The meeting was an occasion for an open and cordial discussion on progress under the strategy adopted by the BEAC and the Banking Commission (COBAC) to support the adjustment efforts undertaken by CEMAC member states in response to the sharp decline in oil prices in 2014. This effort is currently underpinned by IMF-supported programs in four of the six CEMAC countries.
“Governor Tolli and I discussed the strong measures adopted by the BEAC to support external stability —tighter monetary policy, the elimination of direct monetary financing of budgets, and ambitious reforms to strengthen and modernize the BEAC’s governance and operations — and on the need for continued supportive policies by BEAC. We also touched upon important reforms undertaken by COBAC to strengthen the stability of the financial sector. All of these efforts contributed to stopping the decline in BEAC’s official reserves in 2017.
“Governor Tolli and I emphasized the critical importance of CEMAC country authorities steadfastly implementing the policies and reforms, and achieving the fiscal objectives set in the IMF-supported programs, which are needed to restore the domestic and external economic sustainability of their respective countries and the CEMAC region, and to pave the way for higher and more inclusive growth in the region. These continued efforts by CEMAC countries, supported by appropriate policies of regional institutions, should lead to a further build-up in regional reserves to put the regional external position on a stronger footing.
“I welcome the important reforms implemented by the BEAC and COBAC and their ongoing commitment to a strong policy response, which is critical to the success of Fund-supported programs with CEMAC countries, and thanked the Governor for his leadership in supporting this far-reaching regional response.”
The Bank of Central African States, also known as Banque des Etats de I’Afrique Centrale (BEAC), consists of Cameroon, Gabon, Central African Republic, Chad, Republic of the Congo, and Equatorial Guinea.