IMF approves $1.3 billion loan for Ivory Coast

IMF supports Ivory Coast: The executive board of the International Monetary Fund has greenlit a $1.3 billion lending agreement for Ivory Coast, the world's leading cocoa producer. This funding, provided through the Resilience and Sustainability Facility, follows a month-long negotiation between IMF staff and Ivorian authorities.

Climate action plan

Highlighting Ivory Coast's focus on tackling climate change, the IMF stressed the nation's plan to implement a comprehensive set of reforms aimed at mitigating and adapting to environmental challenges. These reforms encompass governance improvements in climate policies, enhanced safeguards for the agricultural sector, the establishment of sustainable financing mechanisms, and initiatives to bolster resilience against climate-related hazards.

Given Ivory Coast's susceptibility to climate change impacts such as rising temperatures, sea level elevation, and altered rainfall patterns, IMF Deputy Managing Director Kenji Okamura stressed the urgent need for action. He highlighted that the reforms supported by the Resilience and Sustainability Facility would not only enhance the country's ability to cope with climate change but also replace costly financing and fortify it against future climate shocks.

Collaboration for reform

The IMF expects close collaboration with development partners to ensure alignment with Ivory Coast's reform agenda. Furthermore, the Resilience and Sustainability Facility is anticipated to mobilise resources to address the country's financing requirements, as outlined in its strategic plans.

Reviews of the 30-month Resilience and Sustainability Facility arrangement will coincide with assessments of separate Extended Credit Facility and Extended Fund Facility arrangements, which were approved in May 2023.

(With Reuters Inputs)