By Modupe Gbadeyanka
Mali has received the approval of the International Monetary Fund (IMF) for the disbursement of $25.8 million to grow its economy.
The IMF gave its nod to this after its executive board concluded the sixth review of Mali’s performance under an economic program supported by an Extended Credit Facility (ECF) arrangement on December 2, 2016.
IMF said with the latest approval, the total disbursement under the arrangement was now $1.3 million.
It also approved the authorities’ request for the modification of the ceiling on the continuous performance criterion on non-concessional external debt.
According to the world financial institution, the ECF arrangement for Mali was approved by the Executive Board on December 18, 2013 for $40.7 million.
On June 9, 2016, the Board approved a one-year extension of the arrangement to December 17, 2017, as well as an augmentation of the resources available under the arrangement, bringing total amount of the arrangement to $132.8 million.
It noted that Mali’s economy continues to grow at a strong pace, with a projected GDP growth of 5.4 percent for 2016 and 5.3 for 2017.
IMF explained that activity is being supported both by public capital spending and the regional central bank’s (BCEAO) accommodative policy.
Inflation is projected to decline to 0.5 percent by end-December and is expected to remain contained at 1 percent.
This favourable outlook is, however, subject to downside risks stemming mainly from Mali’s fragile security situation, it said.
Adedapo Adesanya