IMF Releases $43.96m to Mali, Extends ECF Arrangement

By Modupe Gbadeyanka

The Executive Board of the International Monetary Fund (IMF) has approved the disbursement of $43.96 million to Mali.

This followed completion of the Seventh Review of Mali’s performance under an economic program supported by an Extended Credit Facility (ECF) arrangement.

With the $43.96 million approved for disbursement to Mail, the total amount released to the country is now $127.29 million.

In addition, the board approved the authorities’ request for a one-year extension of the ECF arrangement to December 17, 2018.

It was gathered that the additional financing and time will help strengthen the country’s efforts to implement the peace agreement, address related balance of payment needs and maintain program continuity. This will bring Mali’s total access under the current arrangement to $259.16 million.

IMF said Mali’s economy continues to grow at a robust pace, with a projected GDP growth of 5.3 percent for 2017 and 5.0 for 2018.

Activity is being supported both by robust public capital spending and strong performance of agriculture.

It said inflation is projected to increase to 1.0 percent by end-December and is expected to remain contained at 1.4 percent in 2018. This favourable outlook is, however, subject to downside risks stemming mainly from Mali’s fragile security situation.

Commenting on the approval, Mr Tao Zhang, Deputy Managing Director and Acting Chair, highlighted that, “Mali’s performance under the program supported by the IMF’s Extended Credit Facility Arrangement has been satisfactory.

He said, “The Malian authorities have reaffirmed their commitment to the convergence of the fiscal deficit to the WAEMU norm of 3 percent of GDP by 2019. The 2017 budget reflects this objective while also providing for pressing spending needs. The 2018 budget will aim at maintaining expenditures in line with budgetary resources while protecting social spending and stimulating medium-term public investment. Fiscal consolidation will be anchored to improved resource mobilization, including boosting collection of indirect taxes and containing current spending while accommodating spending needs for security and decentralization.