Ivory Coast granted 3 bln $ debt relief from Imf

Ivory Coast qualified for $3 billion in debt relief under an International Monetary Fund program that assists the world’s poorest countries. The West African nation agreed to implement a poverty reduction strategy for a year and maintain macroeconomic stability in return for the debt relief, the World Bank said in a statement on its Web site. Ivory Coast will receive “interim” debt relief from “certain” creditors, it said, without naming them.

The IMF and World Bank announced in December that the Ivory Coast was eligible for assistance under the so-called Heavily Indebted Poor Countries Initiative. The country’s external debt was estimated at $14.3 billion at the end of 2007, according to the World Bank.
“Under the HIPC Program, Ivory Coast is continuing its commitment to improve governance, foster transparency in public finance and debt management, accelerate reforms in the energy and cocoa/coffee sectors, and strengthen social programs,” World Bank Country Director Madani Tall said in the statement.
Ivory Coast is the world’s largest producer of cocoa, the main ingredient in chocolate. It also expects to boost oil output this year to an average of 56,700 barrels of per day from about 45,800 barrels per day last year, the government said in January.
Alleged Corruption A government investigation into alleged corruption in the cocoa industry last year resulted in the arrest of senior executives of five cocoa agencies.
The IMF said in a statement in January that a “large” share of public expenditure in Ivory Coast has been executed outside regular budget procedures, while some oil revenue has stayed off-budget.
Ivorian President Laurent Gbagbo said the debt relief would help reduce unemployment.
“It is my ambition to turn Ivory Coast into a developed country,” Gbagbo said in comments broadcast on state television last night. “The support that our partners have just given us should reassure us about the path we have chosen.” The success of the economic recovery plan will depend on peace and stability, he said.
Ivory Coast was split into a rebel-held north and a government-controlled south in 2002 following a revolt. An accord signed in March 2007 resulted in the creation of a new government and the appointment of rebel leader Guillaume Soro as prime minister.
“We have demonstrated to the world that we are able to overcome what divides us to agree on what is essential, what unites us around Ivory Coast,” Gbagbo said.