{
  "title": "IMF Executive Board Approves an Additional US$171.9 Million Disbursement Under the RCF to Madagascar to Address the COVID-19 Pandemic",
  "publication": "IMF News, July 30, 2020",
  "sourceUrl": "https://www.imf.org/en/news/articles/2020/07/30/pr20275-madagascar-imf-execboard-approves-us-171-9m-disburse-under-rcf-address-covid19",
  "canonical": "https://www.imf.org/en/news/articles/2020/07/30/pr20275-madagascar-imf-execboard-approves-us-171-9m-disburse-under-rcf-address-covid19",
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  "summary": "Disbursement amount approved: US$171.9 million (SDR122.2 million, 50 percent of quota).",
  "publishDate": "2020-07-30",
  "sections": [
    {
      "heading": "Disbursement details",
      "content": "- Disbursement amount approved: US$171.9 million (SDR122.2 million, 50 percent of quota).\n- This is the second emergency disbursement under the Rapid Credit Facility (RCF).\n- First disbursement: US$ 165.99 million approved on April 3, 2020.\n- Total IMF COVID-19 emergency support to the Republic of Madagascar after this disbursement: US$337.9 million.\n- The second disbursement was enabled by:\n  - IMF Executive Board decision to double the annual access limit under the RCF to 100 percent of quota.\n  - IMF Executive Board decision on a temporary modification to the Fund’s annual PRGT access limits."
    },
    {
      "heading": "Macroeconomic outlook and financing needs",
      "content": "- GDP projection for 2020: contract by 1 percent.\n- Estimated financing gap arising from the pandemic: about US$580 million.\n- Drivers of the weakened outlook: weaker external demand, increased spread of the pandemic, significant losses of revenue, and deepening impact of the COVID-19 pandemic.\n- Fiscal effects: additional revenue losses and redirecting budget resources to address critical spending, including increased social assistance to the most vulnerable."
    },
    {
      "heading": "Use of funds and conditional commitments",
      "content": "- Purpose of RCF resources:\n  - Finance urgent balance of payments and fiscal needs.\n  - Finance health and economic relief spending under the government’s national contingency plan to fight the pandemic.\n  - Support spending on health and social protection, and to support the most vulnerable.\n  - Catalyze additional donor resources.\n- Authorities’ commitments:\n  - Transparency and accountability to ensure RCF resources are used appropriately and for their intended purpose.\n  - Publication of procurement contracts related to the response to the pandemic.\n  - Post-crisis audits."
    },
    {
      "heading": "Executive Board statement (Ms. Antoinette Sayeh, Deputy Managing Director and Acting Chair)",
      "content": "- Key points from the statement:\n  - The COVID-19 pandemic continues to severely affect key sectors of Madagascar’s economy, including tourism and export-oriented manufacturing, further weakening the macroeconomic outlook.\n  - Growth is projected to be negative in 2020 and urgent balance of payments needs arising from the pandemic have increased.\n  - Additional emergency support under the RCF is expected to help finance health and economic relief spending, and continue to catalyze donor support.\n  - In the context of a high degree of uncertainty, more support may be needed to ease the adjustment burden.\n  - The authorities’ decision to apply for the Debt Service Suspension Initiative supported by the G-20 and Paris Club, and use of the released resources to finance spending on COVID-19 related health and economic relief, is welcome.\n  - The authorities are implementing measures to address the humanitarian and economic impact of the pandemic while preserving macroeconomic stability. Measures include:\n    - Strengthening the health system and social protection.\n    - Supporting the private sector.\n    - Preserving the stability of the financial sector.\n    - Maintaining the flexible exchange rate regime.\n  - Madagascar’s risk of public debt distress remains moderate, but risks to the outlook are substantial, underscoring the importance of preserving fiscal sustainability once the crisis abates.\n  - The authorities remain committed, beyond their immediate response to the crisis, to continue reforms needed toward higher, more inclusive, and sustainable growth."
    },
    {
      "heading": "Practical/contact information (from release header)",
      "content": "- Press Release No.: 20/275\n- Date: July 30, 2020\n- IMF Communications Department — Media Relations\n- Press officer: Lucie Mboto Fouda\n- Phone: +1 202 623-7100\n- Email: MEDIA@IMF.org\n- Twitter: @IMFSpokesperson\n\nPress Release No. 20/275, July 30, 2020 — IMF Communications Department.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Republic of Madagascar and the IMF\n- Press Releases\n- PRESS CENTER\n- IMF Press Release No. 20/133\n- IMF Press Release No. 20/267\n- https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker\n- https://www.imf.org/external/NP/SEC/bc/eng/index.aspx\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2020/07/30/pr20275-madagascar-imf-execboard-approves-us-171-9m-disburse-under-rcf-address-covid19"
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    "Published: July 30, 2020",
    "Disbursement amount approved: US$171.9 million (SDR122.2 million, 50 percent of quota).",
    "This is the second emergency disbursement under the Rapid Credit Facility (RCF).",
    "First disbursement: US$ 165.99 million approved on April 3, 2020.",
    "Total IMF COVID-19 emergency support to the Republic of Madagascar after this disbursement: US$337.9 million.",
    "The second disbursement was enabled by:",
    "GDP projection for 2020: contract by 1 percent.",
    "Estimated financing gap arising from the pandemic: about US$580 million.",
    "Drivers of the weakened outlook: weaker external demand, increased spread of the pandemic, significant losses of revenue, and deepening impact of the COVID-19 pandemic.",
    "Fiscal effects: additional revenue losses and redirecting budget resources to address critical spending, including increased social assistance to the most vulnerable.",
    "Purpose of RCF resources:",
    "Authorities’ commitments:",
    "Key points from the statement:",
    "Press Release No.: 20/275",
    "Date: July 30, 2020",
    "IMF Communications Department — Media Relations",
    "Press officer: Lucie Mboto Fouda",
    "Phone: +1 202 623-7100",
    "Email: MEDIA@IMF.org",
    "Twitter: @IMFSpokesperson",
    "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)",
    "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[Republic of Madagascar and the IMF](http://www.imf.org/external/country/MDG/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[IMF Press Release No. 20/133](https://www.imf.org/en/News/Articles/2020/04/03/pr20133-madagascar-imf-executive-board-approves-disbursement-to-address-the-covid-19-pandemic)",
    "[IMF Press Release No. 20/267](https://www.imf.org/en/News/Articles/2020/07/21/pr20267-imf-executive-board-approves-temporary-increase-annual-access-limits-financial-support)",
    "[https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker](https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker)",
    "[https://www.imf.org/external/NP/SEC/bc/eng/index.aspx](https://www.imf.org/external/NP/SEC/bc/eng/index.aspx)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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