722 billions of ariary to save JIRAMA

Good news, the State plans transfers of 722 billion ariary for Jirama for this year. Hoping with all my heart that this will put an end to the load shedding which persists in the country.

722 billions of ariary to save Jirama

The State plans a fund transfer of 722 billion ariary this year to save the national water and electricity company. He intends to limit himself to this support, even if it means adjusting production to stay within this envelope, state the authorities in the Economic and Financial Policy Memorandum (MPEF) that they prepared as part of the fourth review of the program on the Extended Credit Facility (FEC) with the International Monetary Fund (IMF).

This support is in the form of a loan, formalized by the signing of an agreement between the two parties. It is therefore supposed not to affect the budget deficit. Jirama's ability to repay this debt in the short term made the parties skeptical and they ultimately reclassified the loan as a transfer which contributed to widening the deficit of 2022, indicates the report of the fourth review on the FEC.

More budget planned

The State initially planned only 300 billion ariary of operational subsidy for Jirama for this year. Gold, fuel demands to supply its thermal power plants have already reached approximately 258 billion ariary at the end of April 2023.

The need to stop the accumulation of Jirama arrears and to ensure the continuity of its operations in 2023 requires an increase in 422 billions of ariary of the transfer envelope, authorities say.

The State is committed to JIRAMA

The State then committed to providing the IMF service with monthly reports on Jirama’s revenues and costs.. But also to systematically publish the results of all calls for tenders for the purchase of fuel.

The authorities also committed to informing the World Bank and the IMF of the details of any payment to Jirama or its suppliers..

Always with this perspective of empowering Jirama, the government had issued special Treasury Bonds to pay its debt arrears. 2022.