IMF Executive Board Concludes Second and Third Review Under Extended Credit Facility Arrangement for Mali

Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the second and the third reviews of Mali’s performance under the program supported by the Extended Credit Facility (ECF). The three-year ECF arrangement for Mali of SDR 139.95 million (about US$191.9 million, equivalent to 75 percent of Mali’s quota in the IMF) was approved by the IMF’s Board on August 28, 2019 (see Press Release No. 19/319), to support the authorities’ economic reform program.

The IMF has adjusted the program to allow space for the economy to recover from the aftermath of the pandemic and for the government to see through the policy response to mitigate its effects. In completing the reviews, the IMF Executive Board approved the waivers of non-observance on performance criteria, the modification of targets going forward, and rephasing of structural conditionality. The completion of the combined reviews allows the authorities to draw the equivalent of SDR 40 million (about US$57.6 million), bringing total disbursements under the ECF arrangement to the equivalent of SDR 80 million (about US$115.3 million).

Following the Executive Board discussion of Mali’s economic program, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, issued the following statement:

“The confluence of health, economic, socio-political and security crises has posed policy challenges. The authorities rightly refocused policy priorities towards combating the health and economic crises, curbing non-priority spending, and temporarily accommodating higher fiscal deficits. The program has been recalibrated to ensure near-term macroeconomic stabilization and medium-term fiscal sustainability, while ensuring that policies remain growth-friendly and pro-poor.

“Fiscal policy will support the near-term economic recovery through a more gradual return to the regional WAEMU deficit ceiling. Reforms are needed to increase tax revenues and address emerging structural fiscal pressures on the wage bill and subsidies to public enterprises, in order to safeguard developmental, social, and sustainability objectives. Ensuring that support to households reaches those in need in a timely way remains an important priority.

“Structural reforms will support the fiscal effort. The authorities are committed to strengthening revenue mobilization through continued reforms in tax and customs administration. Digitalization will support better revenue administration and public financial management. Reforms to strengthen commitment controls and the treasury single account will help improve the efficiency of cash management.

“The authorities are stepping up efforts to enhance governance, transparency, and the business environment. Priorities include reforms of the anticorruption and AML/CFT frameworks and the implementation of the mandatory asset declarations. The transparency commitments related to COVID-19 emergency spending are being implemented and will be deepened through improved reporting of beneficial ownership by companies awarded public contracts. The initiation by the authorities of a Governance Assessment bodes well with future reforms.

“The authorities’ strong commitment to reforms and their steadfast implementation will be key to success, and may also help unlock additional donor support.”