IMF Executive Board Concludes Second and Third Review Under Extended Credit Facility Arrangement for Mali

first_imgIMF Executive Board Concludes Second and Third Review Under Extended Credit Facility Arrangement for Mali The IMF Executive Board decision allows for an immediate disbursement of about US$57.6 million to Mali to help meet the country’s financing needs and support social spending and the post-pandemic recovery.The ECF arrangement continues to support the government’s effort to mobilize revenues, improve management of public finances and strengthen governance. A slower return to the regional deficit ceilings will support the economic recovery in the near term. Meanwhile, reforms will focus on addressing structural fiscal pressures to ensure a more sustainable, growth-friendly and pro-poor fiscal policy Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the second and the third reviews of Mali’s performance under the program supported by the Extended Credit Facility (ECF). The three-year ECF arrangement for Mali of SDR 139.95 million (about US$191.9 million, equivalent to 75 percent of Mali’s quota in the IMF) was approved by the IMF’s Board on August 28, 2019 (see Press Release No. 19/319), to support the authorities’ economic reform program.The IMF has adjusted the program to allow space for the economy to recover from the aftermath of the pandemic and for the government to see through the policy response to mitigate its effects. In completing the reviews, the IMF Executive Board approved the waivers of non-observance on performance criteria, the modification of targets going forward, and rephasing of structural conditionality. The completion of the combined reviews allows the authorities to draw the equivalent of SDR 40 million (about US$57.6 million), bringing total disbursements under the ECF arrangement to the equivalent of SDR 80 million (about US$115.3 million).Following the Executive Board discussion of Mali’s economic program, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, issued the following statement: “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.“Fiscal policy will support the near-term economic recovery through a more gradual return to the regional WAEMU deficit ceiling. Reforms are needed to increase tax revenues and address emerging structural fiscal pressures on the wage bill and subsidies to public enterprises, in order to safeguard developmental, social, and sustainability objectives. Ensuring that support to households reaches those in need in a timely way remains an important priority.“Structural reforms will support the fiscal effort. The authorities are committed to strengthening revenue mobilization through continued reforms in tax and customs administration. Digitalization will support better revenue administration and public financial management. Reforms to strengthen commitment controls and the treasury single account will help improve the efficiency of cash management.“The authorities are stepping up efforts to enhance governance, transparency, and the business environment. Priorities include reforms of the anticorruption and AML/CFT frameworks and the implementation of the mandatory asset declarations. The transparency commitments related to COVID-19 emergency spending are being implemented and will be deepened through improved reporting of beneficial ownership by companies awarded public contracts. The initiation by the authorities of a Governance Assessment bodes well with future reforms.“The authorities’ strong commitment to reforms and their steadfast implementation will be key to success, and may also help unlock additional donor support.”Table 1. Mali: Selected Economic and Financial Indicators, 2017-25 201720182019202020212022202320242025 1st Review1Est.1st Review1RCF2Est.1st Review1Proj.ProjectionsNational income and prices(Annual percentage change)Real GDP5.34.75.14.85.00.9-2.05.04.06.05.05.05.0GDP deflator1.91.52.52.11.81.82.02.31.52.02.02.02.0Consumer price inflation (average)1.81.7-0.4-2.90.60.60.72.01.52.02.02.02.0Consumer price inflation (end of period)1.11.0-0.8-3.31.71.52.12.31.52.02.02.02.0Output gap2.32.2…3.0……-1.4…-1.1-0.10.00.00.0Money and credit Credit to the government55.764.127.7-36.620.248.1142.3…45.715.96.21.5-1.2Credit to the economy5.44.86.12.26.02.73.7…5.68.17.17.17.1Broad money (M2)4.314.210.09.011.23.315.0…5.68.17.17.17.1Central government finance and public debt(Percent of GDP, unless otherwise indicated)Revenue18.414.319.519.520.517.918.620.719.719.519.719.819.9of which: Tax revenue15.211.914.614.815.513.314.115.714.614.815.015.015.1Grants1.61.22.41.92.53.01.42.01.91.61.81.51.4Total expenditure and net lending22.920.324.823.126.427.125.525.927.125.725.024.324.3Overall balance (accrual basis)-2.9-4.7-2.9-1.7-3.5-6.2-5.5-3.3-5.5-4.5-3.5-3.0-3.0Overall balance (cash basis)-2.6-3.9-3.6-2.6-3.6-6.1-5.1-3.2-5.3-4.4-3.4-2.9-2.9Public debt (end of period)35.536.138.340.539.044.644.139.546.246.947.046.646.1External public debt24.523.426.326.426.130.126.325.725.625.625.826.026.6Domestic public debt311.012.712.014.012.914.517.813.820.621.321.320.619.5Debt service (percent of revenues)6.35.14.85.15.67.26.35.97.310.510.010.39.1External sector Current account balance, including official transfers-7.3-4.9-4.8-4.8-4.4-3.6-2.0-4.6-2.4-2.9-3.6-4.5-5.3Current account balance, excluding official transfers-12.1-9.3-9.4-9.7-8.5-7.1-4.3-8.5-5.8-6.8-7.4-7.9-8.5Exports of goods and services22.524.523.624.924.024.427.223.026.225.023.722.621.7Imports of goods and services36.235.634.636.034.031.532.232.933.132.932.432.031.7Overall balance of payments-0.51.1-0.33.00.1-3.71.6-0.21.41.71.00.2-0.2Terms of trade (deterioration -)-25.3-0.12.29.84.824.631.80.23.9-4.8-2.4-2.3-1.7Real effective exchange rate (depreciation -)40.50.3…-4.2……-0.3………………Memorandum items: Nominal GDP (CFAF billions)8,9229,48210,21410,14010,91710,42710,13811,73210,70411,57312,39413,27414,217Nominal GDP (US$ billions)16.116.5…17.2………………………Public debt (CFAF billions)3,1653,424…4,106…4,6494,476…4,9455,4295,8276,1866,557Overall balance of payments (US$ millions)-71189…451………………………US$ exchange rate (end of period)4554576…590……554………………Gold Price (CFAF billion/ton)22.722.020.923.623.023.032.923.234.835.435.836.236.6Cotton price (CFAF/kg)1,0171,063…956…851868…971916863861869Petroleum price (crude spot; US$/bbl)53686261583641555049484848Sources: Ministry of Economy and Finance; and IMF staff estimates and projections. 1 IMF Country Report No. 20/8, Mali: First Review Under the Extended Credit Facility Arrangement. The review was completed on January 8, 2020. 2 IMF Country Report No. 20/153, Mali: Requests for Disbursement Under the RCF and Rephasing of Access Under the ECF. 3 Includes BCEAO statutory advances, government bonds, treasury bills, and other debts. 4 For 2020, the latest available data is for November. /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. 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