Mali has received a $11.7 million loan from the International Monetary Fund (IMF) to fund projects aimed at accelerating economic recovery.
This comes after the IMF executive board approved the loan which is part of a three-year Extended Credit Facility (ECF) arrangement aimed at helping the West Africa nation resuscitate its shaky economy. The loan brings to a total of $20.5 million the country has received under the arrangement.
The IMF board approved the ECF arrangement for Mali in December last year for an amount of $ 43.9 million.
IMF Deputy Managing Director and Acting Chair Naoyuki Shinohara said in a statement that Mali’s economy is on a recovery path but remains fragile and the loan will help sustain the recovery.
“The economic recovery is under way, but remains fragile, and prospects are clouded by a difficult security situation and the risk of an Ebola epidemic,” said Shinohara.
Shinohara added that serious lapses in public financial management caused delays in the first review of the fund-supported program and the provision of general budget support.
In order to restore business, consumer and donor confidence, it is essential for Mali to tighten the implementation of budget and procurement rules, building on the results of recent official audits.
The 2015 budget puts public finances back on a sustainable path. It appropriately emphasizes revenue mobilization, priority spending for growth and human development, and limited recourse to domestic financing, leaving room for bank financing of the private sector.
To sustain recovery, efforts are urgently needed to strengthen public financial management while tax policy and administration reforms are needed to raise the tax yield.
Reforms aimed at improving the business environment are also essential to boost Mali’s medium-term growth prospects.
Progress in strengthening the financial system, lightening the administrative burden for taxpayers, placing the electricity company’s finances on a sustainable footing and combating corruption will also be critical in the recovery.
International Monetary Fund (IMF)