The International Monetary Fund (IMF) announced the completion, on Wednesday, by its Board of Directors, of the fourth review of Madagascar’s economic program under the Extended Credit Facility (ECF).
This completion of the review allows the disbursement of approximately 32.7 million dollars to cover external and budgetary financing needs, specifies the press release from the financial institution published on Thursday. The new amount brings total disbursements under the agreement to approximately $228.7 million.
According to the statement made, at the end of the discussion of the Board of Directors, by Antoinette Sayeh, Deputy Managing Director and Acting President of the said Board, Madagascar continues to face a difficult environment, with multiple climatic shocks, growth slower pace and strong inflationary pressures, which weigh on the most vulnerable segments of the population.
The authorities have made progress in advancing structural reforms, but further efforts are needed to improve budget execution and governance, better control inflation and strengthen climate resilience policies, she continued.
Among the Council’s recommendations are the mobilization of domestic revenues, including through the implementation of tax administration reforms and the reduction of costly tax expenditures, as well as measures to contain expenditure in order to achieve the budgetary objectives of the program.
According to IMF projections, Madagascar’s growth should stabilize at 4.0% and average annual inflation will exceed 10% in 2023.
By OMA Newsletter N° 1226 of 06/22/2023
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
