(Ecofin Agency) - Madagascar will benefit from $165.99 million from the International Monetary Fund under the Rapid Credit Facility (RCF) to pursue the fight against the novel coronavirus in the country.

With more than 70 cases already recorded, the government is doing all possible to contain the spread of the virus with several barrier prevention measures, which however have a huge impact on the country’s economy and the entry of foreign investments.

Most affected sectors are tourism, manufacturing and extractive industry exports, as well as transport, communications, and services, which recorded a sharp decline. According to IMF experts, this situation is expected to have a significant impact on real GDP growth, causing it to plummet.

Although the government is making significant efforts, the IMF says the fiscal situation is also deteriorating rapidly with additional health and social spending and a significant shortfall in tax revenues. The new Rapid Credit Facility will help the country meet its urgent balance of payments needs resulting from the outbreak of the covid-19 pandemic.

According to Mitsuhiro Furusawa (pictured), the institution's Deputy Managing Director, additional financial support from other development partners is needed to cover the remaining balance of payments deficit and to alleviate the fiscal situation.

Moutiou Adjibi Nourou