Burundi: IMF reviews Burundi's economic performance, gives passmark

Burundi's economic performance - The International Monetary Fund (IMF) has completed an economic review mission to Burundi during which it conducted discussions with Burundi's authorities for the sixth review of the government’s economic and financial programme supported by the IMF under the Extended Credit Facility (ECF).

An IMF statement sent to PANA in New York Thursday said the IMF mission, led by Mr. Jaroslaw Wieczorek, visited Bujumbura, Burundi's capital city, 4-17 Dec.

It quoted Mr. Wieczorek as saying: 'Burundi's performance under the ECF-supported programme has been broadly satisfactory. All quantitative performance criteria for end-September 2014 were met and the structural schedule under the programme advanced, albeit some reforms have taken longer than envisaged to implement.

a'Economic increase is expected to reach 4.7 % in 2014, supported by a rebound in coffee production and construction activity linked to the implementation of major infrastructure
projects, inclunding fiber optics, hydropower, and roads.'

He however noted that, following the decline in international prices of fuel and food, consumer price inflation subsided markedly, and the average inflation rate for the year as a whole is expected to drop from about 8 % in 2013 to 5 - 6 % in 2014.

The IMF official as well disclosed that the economic outlook for 2015 is positive, saying: 'Increase is projected to remain at broadly the same level as in 2014, reflecting ongoing public investment
activity, notably in roads and energy generation, and the start of the pilot phase of nickel mining.

Inflation in 2015 is projected to average 5.5 %.

'Revenue measures adopted in late July together with the receipts from the sales of telecom licenses helped reverse the revenue shortfall registered in the initial half of the year.

'As a result, the annual revenue and budget deficit targets are within reach. As well, the reforms in public financial management advanced, with key steps inclunding unification of the database
of civil servants and preparation of a new law on public deficit management.

'The authorities took chance of the drop in international fuel prices to replace the petroleum pricing mechanism, which will help strengthen budgetary resources in the period ahead.'

It said the mission has encouraged the Burundi authorities to maintain budgetary discipline in the run-up to the 2015 general elections and allow the exchange rate to respond to underlying
economic conditions, inclunding the recent appreciation of the U.S. dollar, to protect external stability and to foster competitiveness.

'The mission reached understandings ad referendum with the authorities on policies for 2015and the reform schedule that could be supported by an extension of the ECF through March 2016, and the IMF’s Executive Board is expected to consider the review and extension of the programme in early 2015,' it said.

During the visit, the IMF mission met with the Second Vice-President Gervais Rufyikiri, Minister of Finance Tabu Abdallah Manirakiza, Minister to the Office of the President Responsible for East African Community Affairs Leontine Nzeyimana, Minister of Energy and Mines, Come Manirakiza and the Minister of the Civil Service, Labor and Social Security Annonciate Sendazirasa.

Others are the Governor of the Central Bank Jean Ciza, members of the Finance Committee of the National Assembly and of the Senate and other senior government officials.

The mission as well had constructive discussions with members of the donor community, private sector and banks.