The Executive Board of the International Monetary Fund completed the fifth review of Burkina Faso’s 48-month Extended Credit Facility arrangement, approved an augmentation of access equal to 50 percent of quota, and completed the first review under the country’s Resilience and Sustainability Facility arrangement. The ECF increase adds SDR 60.20 million, taking total access under the arrangement to SDR 288.96 million, and unlocks an immediate disbursement of SDR 60.20 million, bringing total ECF disbursements to SDR 180.60 million. Completion of the first RSF review enables a further disbursement of SDR 16.42 million. The board also concluded the 2026 Article IV consultation. The IMF linked the additional ECF support to new fertilizer and energy supply shocks tied to the conflict in the Middle East, against a backdrop of security and humanitarian pressures. It said Burkina Faso’s 2025 performance was strong, with real GDP growth at 5.3 percent, average inflation at negative 0.5 percent, and the external position improving from a deficit of 3.5 percent of GDP in 2024 to a surplus of 6.3 percent in 2025, supported by high gold prices and mining-sector reforms. Fiscal adjustment also outperformed program targets, with the overall deficit narrowing to 1.8 percent of GDP from 5.8 percent in 2024, versus a program objective of 4.0 percent. Program implementation remained broadly on track, with all quantitative performance criteria met, all but two indicative targets achieved, all structural benchmarks implemented, and the two RSF reform measures completed, including adoption of a National Disaster Risk Finance Strategy and publication of climate hazard and risk maps. Executive Directors supported a temporary relaxation of the fiscal stance to absorb recent external shocks while maintaining medium-term fiscal consolidation toward the WAEMU deficit criterion. They called for stronger domestic revenue mobilization, targeted and temporary energy subsidies, protection of priority social spending, continued governance and transparency reforms, stronger debt management, and a prudent preference for concessional external financing. Directors also recommended stronger banking supervision, action on asset quality and sovereign-bank linkages, and continued implementation of the RSF reform agenda. The next Article IV consultation is expected to take place under the IMF’s consultation cycle for members with Fund arrangements.

Original source Back to tracker