IVORY COAST: IMF Director Dominic Strauss-Kahn visits Ivory Coast and says IMF loan and debt relief is dependent on good governance

Record ID: 181614

  • Title: IVORY COAST: IMF Director Dominic Strauss-Kahn visits Ivory Coast and says IMF loan and debt relief is dependent on good governance
  • Date: 29th May 2009
  • Summary: ABIDJAN, IVORY COAST (MAY 26, 2009) (REUTERS) IVORY COAST'S PRESIDENT LAURENT GBAGBO WELCOMES DIRECTOR OF INTERNATIONAL MONETARY FUND (IMF) DOMINIQUE STRAUSS-KAHN AT PRESIDENTIAL PALACE GBAGBO AND STRAUSS-KAHN TALKING GBAGBO AND STRAUSS-KAHN WALKING GBAGBO AND STRAUSS-KAHN EMBRACING (SOUNDBITE) (French) DOMINIQUE STRAUSS-KAHN, DIRECTOR, INTERNATIONAL MONETARY FUND (IMF), SAYING: "Ivory Coast is doing well; it's actually one of the few African countries where growth this year will exceed last year's. I don't know what next year will be like, but this year's growth is better than the previous year. And in most countries of the world, the opposite is happening. This year is worse than previous years because of the economic crisis. So this shows that we are at a good starting point, but it is a collaboration that I believe is very efficient, where we have firm but friendly collaboration. The Monetary Fund maintains that things happen in a transparent manner and in good governance." VIEW OF ABIDJAN VARIOUS OF IVORY COAST'S MINISTER OF ECONOMY AND FINANCE CHARLES DIBY AND STRAUSS-KAHN AT UNIVERSITY OF ABIDJAN VARIOUS OF DELEGATES SEATED IN UNIVERSITY HALL (SOUNDBITE) (French) DOMINIQUE STRAUSS-KAHN, DIRECTOR, INTERNATIONAL MONETARY FUND (IMF), SAYING: "It's in all our interests to avoid any mistakes, to ensure that we work within the same established framework. If outside conditions change, if new problems appear again, we will discuss this with one another and renegotiate all the conditions of this programme." VARIOUS OF TEXTILE MAKING FACTORY VARIOUS OF STRAUSS-KAHN VISITING TEXTILE MAKING FACTORY (SOUNDBITE) (French) DOMINIQUE STRAUSS-KAHN, DIRECTOR, INTERNATIONAL MONETARY FUND (IMF), SAYING: "What has been decided should be implemented. It is our responsibility to monitor that it is. It is your responsibility to implement it. And it's the future of your country and the Ivorian people which at this time is in question. If we manage this, then this is truly the beginning of a renaissance of the Ivorian economy." VARIOUS OF TEXTILE FACTORY EMPLOYEE AT WORK
  • Embargoed: 13th June 2009 13:00
  • Keywords:
  • Topics: Information,Economic News
  • Reuters ID: LVAD8OKH5ASJ48KQO535DN41FZCA
  • Story Text: Ivory Coast government must apply the principles of good governance if it is to receive debt relief and loans, International Monetary Fund (IMF) director Dominique Strauss-Khan said on Tuesday (May 26), during a four day visit to the country.
    In March, the IMF approved a 565 million U.S. dollars economic programme for Ivory Coast allowing for the cancellation of 3 billion U.S. dollars of the country's 13 billion U.S. dollars debt.
    The IMF decision was made to enable Ivory Coast, the world's top cocoa grower, to immediately draw about 241 million U.S. dollars of the loan under the IMF's Poverty Reduction.
    The remainder of the loan will be spread out over the course of the programme, which expires in March 2012.
    The loan programme addresses last year's extra-budgetary spending from oil profits and the need for more spending on projects to reduce poverty.
    The World Bank is expected to meet next week to discuss support for the Ivory Coast, including to cancel its portion of the 3 billion U.S. dollars s debt under the Highly Indebted Poor Countries (HIPC) initiative, a global programme to ease the debt burdens of impoverished countries.
    Strauss-Kahn said Ivory Coast was one of the few African countries where growth this year will exceed that of last year. "So this shows that we are at a good starting point, but it is a collaboration that I believe is very efficient, where we have firm but friendly collaboration," he added.
    He stressed that: "The Monetary Fund maintains that things happen in a transparent manner and in good governance."
    Ivory Coast's government has long been criticised for corruption and poor economic management, but says now it's committed to fight corruption, implement transparency and reform its cocoa sector.
    Strauss-Khan recognised the negative influence of the international economic environment, due to the global financial crisis, affecting many countries, especially poor African countries, including Ivory Coast.
    But he encouraged the government to adapt to the current economic reality.
    "It's in all our interests to avoid any mistakes, to ensure that we work within the same established framework. If outside conditions change, if new problems appear again, we will discuss this with one another and renegotiate all the conditions of this programme," added Strauss-Khan.
    Strauss-Kahn stated that the IMF would monitor implementation of the terms of the loan programme in the Ivory Coast. "What has been decided should be implemented. It is our responsibility to monitor that it is. It is your responsibility to implement it. And it's the future of your country and the Ivorian people which at this time is in question. If we manage this, then this is truly the beginning of a renaissance of the Ivorian economy," he said.
    The IMF programme is a signal to donors, investors and creditors to support the Ivory Coast.
    The West African country used to be one of the region's strongest economies but has endured near permanent crisis since it was divided by a brief war in 2002-2003.
    Sub-Saharan Africa will receive around 10 billion U.S. dollars from the IMF to help its economies weather the global financial crisis.
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