IMF demands Cote d’Ivoire austerity

The IMF has told the transition government in Cote d’Ivoire that it should cut government spending after finding that spending was more than double the level agreed by the former president, who was overthrown in December 1999. Among the measures the IMF proposed were:

• charging value-added tax at “normal rates”, ie between 18 and 20 per cent;
• restricting spending on education and health care; and
• raising at least 1.2 billion CFA francs (1.8 million dollars) in taxes and holding wages in check.