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Extended Credit Facility: signature of an agreement between Burkina and the IMF

17/11/2025
Source : ORISHAS FINANCE
Categories: Sectors

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At the end of a mission held from October 29 to 12 November 2025 in Ouagadougou, in the Burkinabe capital, Burkina Faso and the International Monetary Fund (IMF) have reached a financing agreement of approximately $32.7 million. The document was signed as part of the fourth review of the program supported by the agreement under the Facility Extended Credit (FEC).

The IMF indicated in a press release that “the Burkina Faso authorities and IMF staff reached an agreement at level of services on economic and financial policies for the completion of the fourth review of the program supported by the agreement under the FEC, whose approval by the board of directors would allow the disbursement of approximately [32.7] million dollars (24.1 million SDR), this which would bring the total disbursement by the IMF under the FEC to approximately [130.8 million dollars] (96.3 million SDR)”. The recent outbreak international gold prices and ongoing reforms in the sector are reinvigorating the economy of Burkina Faso.

Jaroslaw Wieczorek, IMF chief of mission for the Burkina Faso indicated that “real GDP growth is expected to reach 5%. % in 2025 and remain solid in 2026. Inflation, projected at -0.5% on average in 2025 due to a sharp drop in local food prices and energy, should become positive in 2026, but remain below the midpoint of 2% of the BCEAO target range. Strong exports Gold prices are expected to result in a slight current account surplus in 2025 and in the short term.”

The latter pointed out that “the authorities (Burkinabe) have also implemented reforms that have allowed Burkina Faso to leave the gray list of the Financial Action Task Force (FATF), as well that several structural benchmarks in favor of the promotion of good fiscal governance and transparency, including the adoption of the plan of action based on the IMF's governance diagnosis”.

He also maintained that the Burkinabe authorities have recorded solid performances under the FEC program at the first semester 2025, as evidenced by compliance with the criteria for completion June 2025 relating to the primary budget deficit and domestic financing net as well as all quantitative indicative targets except one.

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