Press Release: IMF Executive Board Completes Sixth Review Under Extended Credit Facility for Mali, Approves a US$40 Million Augmentation and US$33.7 Million Disbursement
June 13, 2011Press Release No. 11/231
June 13, 2011
The Executive Board of the International Monetary Fund (IMF) today completed the sixth review of Mali’s performance under the economic program supported by the Extended Credit Facility, approved an augmentation of access in an amount equivalent to SDR 25 million (about US$40 million; or 27 percent of quota) to cushion the impact of the crises in Côte d’Ivoire and Libya, and approved the modification of performance criteria. The completion of the review enables the immediate disbursement of an amount equivalent to SDR 21 million (US$33.7 million), bringing total disbursements under the program to an amount equivalent to SDR 46.99 million (US$75.3 million).
Mali’s arrangement under the ECF was approved by the Executive Board on May 28, 2008, in the amount equivalent to SDR 27.99 million (about US$45.7 million; see Press Release No. 08/126). On January 26, 2011 Executive Board approved an extension of the arrangement until end-December 2011 (see Press Release No.11/20).
Following the Executive Board’s discussion on Mali, Ms.Nemat Shafik, Deputy Managing Director and Acting Chair, stated:
“Macroeconomic developments in Mali have been favorable. Performance under the ECF-supported program continues to be strong, reflecting the authorities’ commitment to the program objectives. The 2011 economic outlook is positive, with a projected strengthening of economic activity. Continued prudent macroeconomic policies and decisive implementation of structural reforms will be necessary to reduce vulnerabilities, diversify the economy, further raise economic growth, and reduce poverty.
“Fiscal policy continues to be cautious. The 2011 supplementary budget is well aligned with the program’s macroeconomic objectives. Domestic energy prices need to be adjusted to changes in international oil prices in order to safeguard resources for making further progress towards the Millennium Development Goals.
“While public financial management has been strengthened, further progress is needed. The authorities have committed to simplifying the tax code and modernizing tax and customs administration to increase domestic revenue mobilization and improve the business environment. The authorities also plan to reduce the excessive number of accounts held by the government entities in commercial banks, implement the directives of the West African Economic and Monetary Union to increase fiscal transparency, and strengthen oversight in order to improve revenue collection and budget execution.
“To reduce external vulnerabilities stemming from the exports’ concentration on gold, the authorities need to continue to pursue prudent debt management and step up efforts to diversify the economy. Timely privatization of the cotton ginning company, reform of the electricity sector, and financial sector development will be critical steps going forward,” she noted.