## IMF Executive Board Completes the First Review Under the Extended Credit Facility and the Resilience and Sustainability Facility with the Republic of Madagascar

_IMF News, February 26, 2025_

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**Canonical URL:** [IMF Executive Board Completes the First Review Under the Extended Credit Facility and the Resilience and Sustainability Facility with the Republic of Madagascar](https://www.imf.org/en/news/articles/2025/02/26/pr-2547-madagascar-imf-completes-the-1st-rev-under-ecf-rsf)

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## Bibliographic details
- Published: February 26, 2025

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### Review completion and financing disbursement
- The Executive Board completed the First Reviews under the 36-month Extended Credit Facility (ECF) arrangement and under the Resilience and Sustainability Facility (RSF) arrangement.
- The ECF and RSF arrangements were approved by the IMF Executive Board in June 2024.
- The completion of the reviews allows for an immediate disbursement of US$101 million.
- Disbursement breakdown:
  - SDR 36.7 million (about US$48 million) under the ECF arrangement.
  - SDR 40.7 million (about US$53 million) under the RSF arrangement.
- Press Release No. 25/47; publication date: February 26, 2025.

### Program performance and reform priorities
- Madagascar’s performance under the ECF and RSF programs has been adequate albeit uneven.
- Program performance at end-June 2024 was broadly assessed as mixed, stressing the need for continued strong political ownership to support program implementation.
- Key reform priorities highlighted:
  - Continued implementation of the automatic fuel pricing mechanism to help contain fiscal risks and create space for more public investment and social spending.
  - Reform of JIRAMA remains a priority and requires efforts to "firmly secure the financial recovery of JIRAMA."
  - Further efforts to continue improving domestic revenue mobilization.

### Fiscal management, public investment, and governance
- The automatic fuel pricing mechanism is expected to create fiscal space for social spending and investment.
- Reinforcing public financial and investment management processes is critical to improve budget execution and traceability.
- Better cash flow projections and management should facilitate spending and limit the accumulation of arrears.
- Continued improvements in governance, building on the ongoing Governance Diagnostic Assessment, and the implementation of the newly published Anti-Corruption Strategy for 2025-30 will support efforts to fight corruption and promote transparency.

### Monetary policy and central bank guidance
- The central bank (BFM) should stand ready to raise its policy rates to keep inflation on a downward path.
- Further improvements in the liquidity management framework and better communication about monetary policy decisions would bolster BFM’s credibility.

### Climate resilience and environmental safeguards
- Further building adaptation and resilience to climate shocks as well as mobilizing climate finance should continue to be a key priority.
- The new decree on environmental and social impact assessments provides a framework to evaluate and select investment projects, which should be applied to new investments, including road projects.

*IMF Communications Department; MEDIA RELATIONS; PRESS OFFICER: Tatiana Mossot; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson*

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## References

- [Republic of Madagascar and the IMF](http://www.imf.org/external/country/MDG/index.htm)
- [IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2025/02/26/pr-2547-madagascar-imf-completes-the-1st-rev-under-ecf-rsf_