Central African Republic: Third and Fourth Review Under the Extended Credit Facility, Requests for a Waiver of Nonobservance of Performance Criteria, and Financing Assurance Review

CAR's ECF-supported program has helped support crucial governance and transparency reforms, aided by improvements in the security environment. Nonetheless, fiscal pressures persist, as revenue mobilization has not kept pace with rising spending and debt service. Particularly, fuel supply constraints and subpar tax compliance have continued to weigh on revenue collection, while weak public financial management (PFM) and limited spending controls have hindered budget execution. Grants have materialized broadly as expected but remain well below pre-2020 levels, undermining debt sustainability. Staff finalized CAR’s Country Engagement Strategy (CES) (Annex III), outlining key fragility drivers and how IMF support can help address them.