IMF approves $312.4 mln credit facility for Madagascar

THE International Monetary Fund’s executive board has approved a $312.4 million extended credit facility arrangement for Madagascar to help it cushion the effects of the COVID-19 pandemic and climate-related shocks, the fund said.

“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,” Antoinette Sayeh, IMF’s deputy managing director, said.

“Given that Madagascar remains at a moderate risk of debt distress, the authorities plan to follow a prudent debt management strategy that relies on concessional financing …”

The fund said following its board’s decision on the 40-month arrangement, it will allow an immediate disbursement of about $69 million.

The IMF forecasts Madagascar’s economy to grow 3.2% this year, from an estimated 3.2% contraction last year.

To date, Madagascar has a total 23,585 confirmed COVID-19 cases and 387 deaths, a Reuters tally shows.

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