Public Management

Madagascar gets $312mln IMF loan to support economic reforms

Madagascar gets $312mln IMF loan to support economic reforms
Tuesday, 30 March 2021 16:02

The government of Madagascar will benefit from $312.4 million from the International Monetary Fund (IMF). In a statement issued yesterday March 29, the institution said the money will be granted under the Extended Credit Facility (ECF) set to last 40 months.

The money will mainly be used to help the country mitigate the impact of the coronavirus pandemic on its economy, maintain macroeconomic stability, and jump-start the reforms needed to increase and sustain growth while reducing poverty.

“It (the financing program, ed) aims to rebuild and further strengthen fiscal space to allow for much-needed investment and social spending through revenue mobilization and improving quality of spending, resuming and advancing the structural reform and anti-corruption efforts and governance agenda, and strengthening the monetary policy framework and supporting financial stability, while maintaining price stability with exchange rate flexibility. Capacity development is crucial for the success of the program,” IMF said.

It should be recalled that the staff-level agreement reached in early February 2021 between Antananarivo and the IMF staff was based on a $320 million financing. Trapped in economic difficulties against a backdrop of poverty, Madagascar recorded a contraction of more than 4% of its economy in 2020, and the government is planning to mobilize enough funding to get out of these difficulties. Last year, the IMF provided the country with two emergency financing packages of $166 million and $172 million.

The validation of the new agreement by the IMF Board will allow for the immediate disbursement of the first tranche of $69.4 million.

Moutiou Adjibi Nourou   

On the same topic
• IMF extends Niger’s Extended Credit Facility (ECF) program by one year through December 2026.• IMF approves a $41 million disbursement tied to...
EBRD grants $100 million loan to Banque Misr to expand credit access for SMEs and women-led businesses. Loan supports Egypt’s green finance...
UTB’s restructuring delayed to end-2026 due to incomplete audits; reorganization plan expected by March. Despite a CFA 15.2B injection, the bank...
DRC launches campaign to diversify investors in government securities 98% of bonds now held by banks; aim is to reduce risk and broaden...
Most Read
01

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
02

• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...

WAEMU Sees Easing Conditions on Regional Interbank Market
03

• The U.S. imposed a 20% tariff on cashew exports from Vietnam and a 40% tax on suspected transshipm...

U.S. Tariffs on Vietnam Cashews May Disrupt Trade, Hit African Growers (Interview)
04

Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 mil...

Cauri Money Targets Cameroonian Diaspora with Digital Wallet Launch
05

• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...

Qatar Airways Expands its Network in Africa, Building Presence in Kigali, Johannesburg, and Nairobi
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.