IMF : Funding for coronavirus control #Covid19 #MyMadagascar #MahajangaMaVille
IMF : Funding for coronavirus control
IMF : Funding for coronavirus control. International donors, including the IMF (International Monetary Fund), continue to provide financial support to Madagascar in the fight against coronavirus. It has decided to disburse a second tranche of financing under the Rapid Credit Facility.
Confidence in the Malagasy government
In a statement issued yesterday by the IMF, they announced the additional disbursement of 171,9 $1 million under the Rapid Credit Facility (Fcr).
It can be said that it is a way to recognize the good governance of the Malagasy government. "The authorities are implementing measures to address the humanitarian and economic impact of the pandemic while maintaining macroeconomic stability, strengthening the health system and social protection, supporting the private sector, preserving the stability of the financial sector and maintaining the flexible exchange rate regime".
On the other hand, this funder recognises the transparency efforts made by the authorities in the management of funds.
"In order to ensure that the funding provided is used effectively to deal with the crisis, the authorities have pledged to increase transparency, including the publication of public procurement related to the pandemic response and with post-crisis audits" according to the IMF communiqué, whose funding for the fight against coronavirus now amounts to 337,9 $ million.
A second bottom release for Madagascar
Indeed, the IMF had already released a first tranche of 165,99 million dollars on 3 last April. And here's a second one.
This second tranche, which was taken out in only 5 month, obviously proves the good negotiating ability of the malagasy party that has just achieved a double feat.
On the one hand, only Madagascar and Paul Kagame's Rwanda have achieved this double release. And on the other hand, the Big Island has benefited from a double disbursement in less than six months. In short, this confidence of the IMF, who is considered to be the boss of donors, will open the tap more of other funders.
Pending, this second disbursement of the CRF will enable the government to deal with emergencies. Indeed, although it was the Ministry of Economy and Finance that led the negotiations for the credit, it's the government in general that decides. And the latter is responsible for the use of the funds, in agreement with IMF staff.
IMF : Funding for coronavirus control, a bargain
This additional CR-budget disbursement will help fund health spending and an economic assistance plan as part of the government's national pandemic contingency plan..
It will also continue to catalyze additional donor support. A bargain, in short for the Malagasy economy, which is currently in a very difficult situation. This is partly because of an unprecedented drop in tax and customs revenues.
According to the IMF, "the urgent needs of the balance of payments resulting from the pandemic have increased, with a funding need now estimated at around 580 $ million, while the fiscal situation has been severely affected by loss of additional revenue and the redirecting of budgetary resources to cope with critical expenditure, including increased social assistance to the most vulnerable".
It should be noted that Madagascar's risk of public over-indebtedness remains moderate. This leaves the possibility of using other loans.
Source : Noon Madagasikara 01/08/2020
Let us continue to respect the barriers and follow the instructions of the authorities.
Who are we ?
Coco Lodge Majunga is both :