Mali has secured $57.6 million in financing from the International Monetary Fund (IMF). In a Feb. 22 statement, the institution said the disbursement follows the completion of the second and third performance reviews of the Malian government, as part of the post-Covid economic reform program supported by a $191.9 million Extended Credit Facility (ECF).
Approved in 2019, the program was designed to strengthen the State’s budget stability, increase tax revenues and address “structural fiscal pressures to ensure a more sustainable, growth-friendly and pro-poor fiscal policy.” But with the covid-19 pandemic, the program had to be readjusted to enable the economy to recover and to assist the government in implementing the measures needed to mitigate the effects of the crisis.
“The confluence of health, economic, socio-political and security crises has posed policy challenges. The authorities rightly refocused policy priorities towards combating the health and economic crises, curbing non-priority spending, and temporarily accommodating higher fiscal deficits. The program has been recalibrated to ensure near-term macroeconomic stabilization and medium-term fiscal sustainability while ensuring that policies remain growth-friendly and pro-poor,” said Mitsuhiro Furusawa, IMF-Deputy MD.
The new investment brings the total IMF commitment under the ECF with Mali to $115.3 million. According to IMF projections, the country is expected to record economic growth of at least 4% this year, following a 2% recession in 2020.