(Ecofin Agency) - The World Bank approved on September 3 the disbursement of $75 million to help Madagascar mitigate the impacts of the coronavirus pandemic.

The money will help shut the country’s budget gap, which was widened by the increase in health expenditures and the drop in revenue. Part of the resources will also support the implementation of reforms aiming at bettering the efficiency and transparency of the Covid-19 response plan, therefore speeding up the economic recovery.

“The economic and fiscal impact of the COVID-19 crisis in Madagascar will be substantial in 2020 and could reverse past progress in poverty reduction and deepen fragility. This operation will help the government save lives, protect the livelihoods of the most vulnerable populations and preserve jobs while implementing policy reforms and strengthening institutions to lay the foundation for a stronger social and economic recovery” said Marie-Chantal Uwanyiligira, World Bank Country Manager for Madagascar.

As part of the fight against the pandemic, Madagascar received $171.9 million in July from the International Monetary Fund (IMF). The latter expects the country’s economy to shrink by 1% this year.

 Moutiou Adjibi Nourou