IMF Executive Board Discusses the Ex Post Assessment of Longer-Term Program Engagement with MaliPublic Information Notice (PIN) No. 11/78
June 17, 2011
Public Information Notices (PINs) form part of the IMF's efforts to promote transparency of the IMF's views and analysis of economic developments and policies. With the consent of the country (or countries) concerned, PINs are issued after Executive Board discussions of Article IV consultations with member countries, of its surveillance of developments at the regional level, of post-program monitoring, and of ex post assessments of member countries with longer-term program engagements. PINs are also issued after Executive Board discussions of general policy matters, unless otherwise decided by the Executive Board in a particular case.
On June 13, 2011, the Executive Board of the International Monetary Fund (IMF) discussed the Ex Post Assessment (EPA) of Longer-Term Program Engagement with Mali.
An EPA is required for all members having longer-term program engagement with the Fund. EPAs are intended to provide an opportunity to step back from continuing program relations to consider an analysis of the economic problems facing the country, review progress under Fund-supported programs, and draw forward-looking lessons for future Fund engagement.
Since the late 1980s, Mali has almost continuously had a program supported by the Fund under its various concessional lending facilities. In December 2003, a first ex post assessment concluded that Mali had made important progress with respect to macroeconomic management and implementation of structural reforms, but that key challenges remained, including consolidating the fiscal position, bolstering competitiveness and diversifying the economy, and enhancing the business climate—including through privatization and improved governance—in order to spur growth and reduce poverty.
This EPA reviewed Fund’s involvement in Mali from 2004 to 2011, focusing on the implementation of the 2004–07 program supported by the then-existing Poverty Reduction and Growth Facility (PRGF), and the 2008–11 program supported by the PRGF/Extended Credit Facility (ECF) arrangement.
Executive Board Assessment
Directors noted the findings of EPA of Longer-Term Program Engagement. While the program objective of macroeconomic and financial stability was broadly achieved, as evidenced by the moderate fiscal deficits, low and relatively stable rates of inflation, and the maintenance of a sustainable external debt position, raising economic growth remained a challenge. As highlighted by the EPA, Directors agreed that decisive implementation of structural reforms would be necessary to create conditions for encouraging higher private sector investment and employment. They also agreed that the findings of the EPA would provide helpful guidance in the design of future Fund engagement.
Directors noted that a successor Fund-supported program would help Mali meet its large external financing requirements and strengthen its efforts on structural reforms.