{
  "title": "IMF Executive Board Approves US$312.4 Million ECF Arrangement for Madagascar",
  "publication": "IMF News, March 29, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement",
  "canonical": "https://www.imf.org/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement",
  "overlayPath": "/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement/index.md",
  "summary": "The Executive Board approved a 40-month arrangement under the Extended Credit Facility (ECF) equivalent to SDR219.96 million (about US$312.4 million or 90 percent of quota) for Madagascar.",
  "publishDate": "2021-03-29",
  "sections": [
    {
      "heading": "Arrangement details",
      "content": "- The Executive Board approved a 40-month arrangement under the Extended Credit Facility (ECF) equivalent to SDR219.96 million (about US$312.4 million or 90 percent of quota) for Madagascar.\n- The Board’s decision allows an immediate disbursement of SDR 48.88 million (about US$69.4 million).\n- The ECF arrangement follows the Fund’s emergency support to Madagascar in April 2020 for SDR122.2 million (about US$165.99 million or 50 percent of quota), and in July 2020 for SDR122.2 million (about US$171.9 million or 50 percent of quota).\n- The arrangement is expected to catalyze additional bilateral and multilateral financial support."
    },
    {
      "heading": "Program objectives and reform focus",
      "content": "- Support the implementation of the authorities’ ambitious economic reform agenda to raise sustainable and inclusive growth and reduce poverty.\n- Mitigate the economic impact of the COVID-19 pandemic, maintain macroeconomic stability, and revive reform momentum.\n- Specific reform areas:\n  - Rebuild and further strengthen fiscal space to allow for much needed investment and social spending through revenue mobilization and improving quality of spending.\n  - Resume and advance structural reform and anti-corruption efforts and the governance agenda.\n  - Strengthen the monetary policy framework and support financial stability while maintaining price stability with exchange rate flexibility.\n  - Capacity development is highlighted as crucial for program success.\n- Program design accounts for Madagascar’s fragilities, including high exposure to climate-related shocks."
    },
    {
      "heading": "Debt management, transparency, and contingency planning (Authorities’ intentions as described)",
      "content": "- Madagascar remains at a moderate risk of debt distress; authorities plan a prudent debt management strategy that relies on concessional financing for scaling-up investment and improving investment management.\n- Authorities envisage developing contingency plans and mitigating fiscal risks, including:\n  - Addressing potential fuel pricing-related liabilities.\n  - Implementing the public utility JIRAMA’s recovery plan with World Bank support.\n  - Developing a disaster risk management strategy to assess and manage climate-related risks.\n- Progress on COVID-19-related transparency commitments includes publishing information on pandemic mitigation spending and procurement contracts; further strengthening of budget transparency and implementation of remaining transparency commitments is ongoing.\n- To improve the business environment and attract private investment, authorities are committed to fully implementing the anti-corruption legal framework.\n- Plans to continue improving the monetary policy framework, developing and strengthening the financial sector, and boosting financial inclusion."
    },
    {
      "heading": "Selected Economic Indicators, 2019–23 (Table 1) — national account, prices, money, public finance, external sector, and public debt",
      "content": "- National account and prices (percent change, unless otherwise indicated)\n  - GDP at constant prices:\n    - 2019: 4.4\n    - 2020: -4.2\n    - 2021 (Est.): 3.2\n    - 2022 (Proj.): 5.0\n    - 2023 (Proj.): 5.4\n  - GDP deflator:\n    - 2019: 5.6\n    - 2020: 4.2\n    - 2021 (Est.): 5.7\n    - 2022 (Proj.): 6.0\n  - Consumer prices (end of period):\n    - 2019: 4.0\n    - 2020: 4.6\n    - 2021 (Est.): 5.8\n- Money and credit\n  - Broad money (M3) (Growth in percent of beginning of period money stock (M3)):\n    - 2019: 7.3\n    - 2020: 12.1\n    - 2021 (Est.): 21.8\n    - 2022 (Proj.): 10.4\n    - 2023 (Proj.): 10.9\n  - Net foreign assets:\n    - 2019: -2.6\n    - 2020: 2.1\n    - 2021 (Est.): 2.2\n    - 2022 (Proj.): 3.1\n  - Net domestic assets:\n    - 2019: 9.9\n    - 2020: 10.0\n    - 2021 (Est.): 19.6\n    - 2022 (Proj.): 5.5\n  - of which: Credit to the private sector:\n    - 2019: 10.3\n    - 2020: 8.0\n    - 2021 (Est.): 4.5\n    - 2022 (Proj.): 4.9\n- Public finance (percent of GDP)\n  - Total revenue (excluding grants):\n    - 2019: 10.5\n    - 2020: 9.2\n    - 2021 (Est.): 11.4\n    - 2022 (Proj.): 12.2\n  - of which: Tax revenue:\n    - 2019: 8.9\n    - 2020: 11.1\n    - 2021 (Est.): 11.9\n  - Grants:\n    - 2019: 3.0\n    - 2020: 1.8\n    - 2021 (Est.): 2.3\n    - 2022 (Proj.): 1.3\n  - of which: budget grants:\n    - 2019: 0.7\n    - 2020: 0.8\n    - 2021 (Est.): 0.5\n    - 2022 (Proj.): 0.3\n  - Total expenditures:\n    - 2019: 14.9\n    - 2020: 15.1\n    - 2021 (Est.): 18.3\n    - 2022 (Proj.): 18.1\n    - 2023 (Proj.): 17.8\n  - Current expenditure:\n    - 2019: 9.3\n    - 2020: 9.5\n    - 2021 (Est.): 10.7\n  - Capital expenditure:\n    - 2019: 7.6\n    - 2020: 8.6\n  - Overall balance (commitment basis):\n    - 2019: -1.4\n    - 2020: -5.8\n    - 2021 (Est.): -4.8\n    - 2022 (Proj.): -4.3\n  - Domestic primary balance1:\n    - 2019: -2.5\n    - 2020: -0.4\n    - 2021 (Est.): 0.2\n  - Total financing:\n    - 2019: 2.9\n    - 2020: 6.6\n    - 2021 (Est.): 4.1\n    - 2022 (Proj.): 3.9\n  - Foreign borrowing (net):\n    - 2019: 1.2\n    - 2020: 1.4\n    - 2021 (Est.): 3.6\n    - 2022 (Proj.): 3.5\n    - 2023 (Proj.): 3.3\n  - Domestic financing:\n    - 2019: 0.0\n    - 2020: 1.5\n    - 2021 (Est.): 0.6\n  - Financing gap:\n    - 2019: -0.7\n- Savings and investment\n  - Investment:\n    - 2019: 20.6\n    - 2020: 18.4\n    - 2021 (Est.): 22.2\n  - Gross national savings:\n    - 2019: 19.8\n    - 2020: 8.5\n    - 2021 (Est.): 13.4\n    - 2022 (Proj.): 16.2\n- External sector\n  - Exports of goods, f.o.b.:\n    - 2019: 18.0\n    - 2020: 14.0\n    - 2021 (Est.): 16.5\n    - 2022 (Proj.): 19.1\n  - Imports of goods, c.i.f.:\n    - 2019: 26.2\n    - 2020: 22.8\n    - 2021 (Est.): 25.2\n    - 2022 (Proj.): 27.7\n  - Current account balance (exc. grants):\n    - 2019: -5.3\n    - 2020: -9.6\n    - 2021 (Est.): -7.2\n    - 2022 (Proj.): -6.2\n    - 2023 (Proj.): -5.7\n  - Current account balance (inc. grants):\n    - 2019: -2.2\n    - 2020: -6.5\n    - 2021 (Est.): -5.0\n    - 2022 (Proj.): -4.4\n- Public debt (percent of GDP)\n  - Public debt:\n    - 2019: 37.8\n    - 2020: 43.6\n    - 2021 (Est.): 46.9\n    - 2022 (Proj.): 47.8\n    - 2023 (Proj.): 48.6\n  - External Public Debt:\n    - 2019: 26.6\n    - 2020: 32.0\n    - 2021 (Est.): 34.7\n    - 2022 (Proj.): 36.1\n    - 2023 (Proj.): 37.3\n  - Domestic Public Debt:\n    - 2019: 11.2\n    - 2020: 11.6\n    - 2021 (Est.): 11.7\n    - 2022 (Proj.): 11.3\n- Other indicators\n  - Gross official reserves (millions of SDRs):\n    - 2019: 1196\n    - 2020: 1338\n    - 2021 (Est.): 1449\n    - 2022 (Proj.): 1540\n    - 2023 (Proj.): 1680\n  - Months of imports of goods and services:\n    - 2019: 5.9\n    - 2020: 5.1\n  - GDP per capita (U.S. dollars):\n    - 2019: 540\n    - 2020: 502\n    - 2021 (Est.): 521\n    - 2022 (Proj.): 551\n    - 2023 (Proj.): 582"
    },
    {
      "heading": "Executive Director statement highlights (Ms. Antoinette Sayeh, Deputy Managing Director and Acting Chair)",
      "content": "- The COVID-19 pandemic continues to take a severe human and economic toll on Madagascar, reversing recent social and economic progress, and creating fiscal and external financing needs.\n- The authorities’ program will focus on supporting the economic recovery and implementing structural reforms to increase sustainable and inclusive growth that reduces poverty.\n- Authorities are implementing measures to create fiscal space for much needed social spending and investment, including medium-term revenue mobilization efforts and improving the quality of public spending.\n- Authorities plan to follow a prudent debt management strategy, develop contingency plans, and mitigate fiscal risks.\n- Authorities have made progress on COVID-19-related transparency commitments and are working to further strengthen budget transparency and implement remaining transparency commitments.\n- To improve the business environment and attract private investment, authorities are committed to fully implementing the anti-corruption legal framework and to continue improving the monetary policy framework and financial sector development.\n\nIMF Communications Department; Press Release No. 21/91; March 29, 2021.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement/index.md)",
    "[Structured JSON version](/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement/index.json)",
    "[Bundle manifest](/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement/bundle-manifest.json)",
    "Published: March 29, 2021",
    "The Executive Board approved a 40-month arrangement under the Extended Credit Facility (ECF) equivalent to SDR219.96 million (about US$312.4 million or 90 percent of quota) for Madagascar.",
    "The Board’s decision allows an immediate disbursement of SDR 48.88 million (about US$69.4 million).",
    "The ECF arrangement follows the Fund’s emergency support to Madagascar in April 2020 for SDR122.2 million (about US$165.99 million or 50 percent of quota), and in July 2020 for SDR122.2 million (about US$171.9 million or 50 percent of quota).",
    "The arrangement is expected to catalyze additional bilateral and multilateral financial support.",
    "Support the implementation of the authorities’ ambitious economic reform agenda to raise sustainable and inclusive growth and reduce poverty.",
    "Mitigate the economic impact of the COVID-19 pandemic, maintain macroeconomic stability, and revive reform momentum.",
    "Specific reform areas:",
    "Program design accounts for Madagascar’s fragilities, including high exposure to climate-related shocks.",
    "Madagascar remains at a moderate risk of debt distress; authorities plan a prudent debt management strategy that relies on concessional financing for scaling-up investment and improving investment management.",
    "Authorities envisage developing contingency plans and mitigating fiscal risks, including:",
    "Progress on COVID-19-related transparency commitments includes publishing information on pandemic mitigation spending and procurement contracts; further strengthening of budget transparency and implementation of remaining transparency commitments is ongoing.",
    "To improve the business environment and attract private investment, authorities are committed to fully implementing the anti-corruption legal framework.",
    "Plans to continue improving the monetary policy framework, developing and strengthening the financial sector, and boosting financial inclusion.",
    "National account and prices (percent change, unless otherwise indicated)",
    "Money and credit",
    "Public finance (percent of GDP)",
    "Savings and investment",
    "External sector",
    "Public debt (percent of GDP)",
    "Other indicators",
    "The COVID-19 pandemic continues to take a severe human and economic toll on Madagascar, reversing recent social and economic progress, and creating fiscal and external financing needs.",
    "The authorities’ program will focus on supporting the economic recovery and implementing structural reforms to increase sustainable and inclusive growth that reduces poverty.",
    "Authorities are implementing measures to create fiscal space for much needed social spending and investment, including medium-term revenue mobilization efforts and improving the quality of public spending.",
    "Authorities plan to follow a prudent debt management strategy, develop contingency plans, and mitigate fiscal risks.",
    "Authorities have made progress on COVID-19-related transparency commitments and are working to further strengthen budget transparency and implement remaining transparency commitments.",
    "To improve the business environment and attract private investment, authorities are committed to fully implementing the anti-corruption legal framework and to continue improving the monetary policy framework and financial sector development.",
    "[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)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement/index.md",
    "json": "/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement/index.json",
    "bundleManifest": "/en/news/articles/2021/03/29/pr2191-madagascar-imf-executive-board-approves-ecf-arrangement/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T00:16:32.821Z"
}