Press Release No. Press Release No.04/156

Press Release: IMF Statement on Madagascar

July 21, 2004

The following statement was issued today by the International Monetary Fund (IMF) in Washington:

President Ravalomanana of Madagascar and the IMF Managing Director Rodrigo de Rato met today in Washington. The discussions covered recent economic developments and prospects in Madagascar and progress toward reaching the completion point under the enhanced Heavily Indebted Poor Countries (HIPC) initiative.

The Managing Director welcomed the recent policy measures that have contributed to the stabilization of the exchange rate. These measures should help in reining in the rise in inflation, which has particularly adverse effects on the poor, and safeguarding macroeconomic stability. The Managing Director also welcomed the recent issuance of the first annual progress report on the poverty reduction strategy. Together with satisfactory macroeconomic and structural performance under the Poverty Reduction and Growth Facility (PRGF) program-to be assessed by a mission that will visit Madagascar in August-this would allow submitting the HIPC completion point documents for early consideration by the Fund's Executive Board.