Mali: Request for a Three-Year Arrangement under The Extended Credit Facility-Staff Report; Informational Annex; Staff Statement; Press Release on the Executive Board Consideration; and Statement by the Executive Director for Mali

Publication Date: December 31, 2013
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Summary: Context: Mali is emerging from the worst security and political crisis in its recent history. Progress in political normalization to date has been encouraging: a successful presidential election, formation of the new government and the legislative elections have demonstrated Mali’s commitment to its democratic tradition. The economy is on the mend as donor assistance and business confidence are gradually returning. But formidable challenges remain. On the political front, the government needs to consolidate peace and promote national reconciliation after the traumatic events of 2012. At the same time, it is striving to support a nascent economic recovery, maintain macroeconomic and financial stability, and restart the economic reform agenda. Request for an arrangement under the Extended Credit Facility: The authorities request Fund assistance under an ECF arrangement in an amount equivalent to SDR 30 million (about 32 percent of quota) in support of their medium-term program to reduce balance-of-payments vulnerabilities and lay foundations for stronger, more inclusive growth. Their reform efforts are focused on tax policy and revenue administration, public financial management and improving the business environment. Main policy recommendations: Implement an effective fiscal framework in 2014. Ensure effective deployment of donor aid toward priority spending. To help the economy’s recovery, clear existing domestic arrears and keep the recourse to domestic borrowing to a minimum. Keep foreign borrowing in line with debt sustainability. Step up public financial management reforms. Increase tax revenues by 0.5 percent of GDP a year by enforcing tax compliance, broadening the tax base and streamlining tax administration; strengthen treasury management and internal control to avoid emergence of new arrears. Accelerate reforms to improve business environment. Tackle weak governance; shore up financial sector stability and promote its development; and reform electricity and petroleum product pricing to protect the government budget and restore the electricity company’s financial integrity.
Series: Country Report No. 13/380
Subject(s): Extended Credit Facility | Economic recovery | Economic growth | Financial management | Fiscal policy | Fiscal reforms | Economic indicators | Debt sustainability analysis | Staff Reports | Press releases | Extended arrangement requests | Mali

Notes Also available in French
Publication Date: December 31, 2013
ISBN/ISSN: 9781484338018/1934-7685 Format: Paper
Stock No: 1MLIEA2013008 Pages: 107
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