WASHINGTON (Reuters) - The International Monetary Fund on Friday agreed to disburse $53.5 million to the Ivory Coast, saying the West African country's performance under an IMF credit facility was "broadly satisfactory".
IMF Deputy Managing Director Naoyuki Shinohara said economic activity in the Ivory Coast, the world's top cocoa grower, would likely slow this year due to political instability, power cuts and strikes.
In March, the IMF said economic growth could fall to 3 percent this year from 3.8 percent in 2009.
In a statement, Shinohara said the country's 2010 fiscal program had been eased modestly due to unexpected one-off outlays to maintain power supply, support the troubled oil refinery and cover the cost of the delay in elections.
The authorities remain committed to medium-term fiscal consolidation, he added.
Shinohara urged reform measures to address the electricity sector's problems, improve productivity in the coffee/cocoa sector and ensure the financial viability of public utilities and the oil refinery.
A financial sector restructuring and development strategy is being prepared, he said, adding that improvements in the business climate will also be crucial to raise investor confidence.
Ivory Coast is in the process of completing an IMF and World Bank-managed debt relief program under the Heavily Indebted Poor Countries initiative.
"Strong performance under the program and meeting other triggers will be important for reaching the completion point," he added.
