Country Report Burundi February 2011

Economic policy: IMF says ECF implementation is "broadly satisfactory"

An IMF mission visited in early December to conduct the fifth review of the government's implementation of the economic reform programme linked to the Fund's extended credit facility (ECF; August 2010, Economic policy). The mission later released a statement describing implementation as "broadly satisfactory", despite what it delicately termed the "risks" posed by the recent electoral cycle. The mission said that all quantitative performance criteria for the programme had been met and that structural reforms remained on track, noting in particular that the OBR was ready to start operating (see The domestic economy). The IMF said that it hoped to see more capital expenditure on key infrastructure during 2011, and the country's accelerated integration with other members of the East African Community (EAC). The mission welcomed the government's stated policy of zero tolerance for corruption, but was silent concerning the degree to which this is being honoured in practice, despite a recent major scandal. The fifth review is expected to be concluded by the IMF's executive board in February, which is expected to ensure continued ECF funding and assistance in Burundi's dealings with other donors. Given the positive assessment, the Economist Intelligence Unit expects the government to negotiate a replacement programme with the Fund when the current ECF expires in mid-2011.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
IMPRINT