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                           THE REPUBLIC OF CÔTE D’IVOIRE

  COMPLETION POINT DOCUMENT FOR THE ENHANCED HIPC INITIATIVE
POVERTY REDUCTION STRATEGY PAPER PROGRESS REPORT AND THE JOINT
                 IDA-IMF STAFF ADVISORY NOTE

                                   CHAIR’S SUMMING UP*

                                Meeting of Executive Directors

                                          June 26, 2012

       The Executive Directors considered the President’s Memorandum and Recommendation
and Completion Point Document for the Enhanced Heavily Indebted Poor Countries (HIPC)
(IDA/R2012-0163; /1), the Progress Report of the Poverty Reduction Strategy Paper (PRSP-PR)
prepared by the Government of Côte d’Ivoire, and the Joint IDA-IMF Staff Advisory Note
(JSAN) of the PRSP-PR (IDA/SecM2012-0340).

Poverty Reduction Strategy Paper First Annual Progress Report

         Directors commended the Authorities for the progress made in implementing their
poverty reduction strategy, particularly for preserving a stable macroeconomic environment
despite the post-conflict context. They welcomed the commitment to maintain macroeconomic
stability, promote good governance, and improve the investment climate, as described in the new
National Development Plan. However, Directors noted the need to foster conditions for
economic growth through continued diversification of its exports, improved governance in the
cocoa/coffee sector, continued reforms in the electricity sector, and the need for a real jobs plan.

       Directors noted that the security situation remained fragile and highlighted the additional
challenges going forward, particularly relating to maintaining peace and protecting the security
of the population. In this regard, Directors encouraged the Authorities to focus on human
development and social services as well as strengthening the reform agenda. In particular, some
Directors noted the need to improve gender equality, including in the education sector.

        Directors emphasized the need to improve the understanding of the extent and
distribution of poverty, as well as its causes, through an updated poverty survey, based on a new
census and household survey. There will be a corresponding need to enhance statistical capacity.
Finally, Directors pointed to the need to improve the results framework to ensure effective and
regular monitoring, including making reporting results in accessible form.

Completion Point of the Enhanced Highly Indebted Poor Countries (HIPC) Initiative

        Directors agreed that Côte d’Ivoire had met the conditions for reaching the completion
point under the enhanced HIPC Initiative and endorsed staff’s recommendations in paragraphs
16 and 17 of the Memorandum of the President, regarding the upward revision of HIPC
assistance to Côte d’Ivoire on the basis of the updated debt reconciliation exercise.
         Directors noted that Côte d’Ivoire exits from the enhanced HIPC Initiative to attain debt
sustainability and sufficient assurances have been given by creditors to commit enhanced HIPC
Initiative assistance on an irrevocable basis. They agreed with the request for five waivers among
the 13 floating completion point triggers, noting that these requests reflected the difficulty of
meeting triggers to the letter in unpredicted circumstances.


         Directors commended the Cote d’Ivorian Authorities for the significant progress made in
the implementation of the triggers for reaching the completion point under the Enhanced HIPC
Initiative in very challenging circumstances. They noted the solid reform progress since the end
of the post-election crisis. Directors underlined the need for continued attention to the peace and
reconciliation process, and the disarmament, demobilization and reintegration agenda, to
reinforce stability and prevent a return to violence.

        Finally, Directors highlighted the country’s vulnerability to external shocks and the need
for continued reforms to mitigate them. They urged the Authorities to follow prudent fiscal
policy and strengthen public debt management in the post-debt relief environment.




* This summary is not an approved record.