IMF Executive Board Completes First Review Under Mali's Extended Credit Facility Arrangement and Approves US$27.63 Million Disbursement

IMF News, January 8, 2020

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Canonical URL: IMF Executive Board Completes First Review Under Mali's Extended Credit Facility Arrangement and Approves US$27.63 Million Disbursement

The Executive Board completed the first review of Mali’s program supported by a three-year arrangement under the Extended Credit Facility (ECF).
Completion of the review enables Mali to draw the equivalent of about SDR 20 million (about US$27.63 million).
Total disbursements under the arrangement after this review: SDR 40 million (about US$55.26 million).
The three-year arrangement was approved on August 28, 2019 for SDR 140 million (about US$193.5 million), equivalent of 75 percent of Mali’s quota in the IMF.

The ECF-supported program aims to maintain macroeconomic stability and to foster higher, more inclusive, and durable growth.
Growth is expected to stabilize at 5 percent over the medium-term, but downside risks are high given the security challenges the country is facing.
The fiscal framework for 2020 relaxes the overall deficit target to balance spending needs and available resources while protecting social and developmental spending amid security-related pressures.
Fiscal space for priority spending is being created through ambitious but realistic revenue targets.

The Executive Board noted important progress in implementing the Fund-supported program despite daunting security challenges.
Economic growth has remained solid; the authorities have implemented their revenue mobilization program and structural reforms are underway.
Continued commitment to sound policies and reforms is critical to achieving the program’s objectives.

Policy priorities and recommended reforms:

Safeguard social and developmental spending while managing security outlays.
Strengthen revenue mobilization:
- Reduce opportunities for tax fraud.
- Strengthen capacity of tax and customs administration.
- Improve compliance in medium and large taxpayer segments.
Strengthen public financial management:
- Put the state electricity company on a sound financial footing to reduce fiscal pressures and secure an adequate supply of electricity.
- Improve cash management to prevent recurrence of arrears.
- Strengthen debt management.
Secure transparent and efficient security spending; an upcoming World Bank review of security spending is highlighted as critical.
Strengthen governance and anti-corruption efforts:
- Implement governance reform objectives in fiscal, anti-money laundering, and overall anti-corruption framework areas.
- A forthcoming governance assessment is expected to inform future reform priorities.

The Executive Board approved the authorities’ request for a waiver for the nonobservance of the quantitative performance criterion on the non-accumulation of domestic arrears.

[1] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country's authorities. An explanation of any qualifiers used in summings up can be found here: http://www.imf.org/external/np/sec/misc/qualifiers.htm.

International Monetary Fund