IMF Reaches Staff-Level Agreement with Mali on First Review under ECF Arrangement | WPN World People News

● Economic growth is expected to reach 5 percent in 2019 and over the medium term, despite the challenging security situation, reflecting some resilience in the economy.

● The fiscal deficit is expected to meet the West African Economic and Monetary Union (WAEMU)’s convergence criteria of 3 percent of GDP in 2019.

● The mission encourages the authorities to improve efficiency in public services delivery, including through pursuing reforms to improve governance, in order to achieve the program objectives for strong and inclusive growth and poverty reduction.

A team from the International Monetary Fund (IMF), led by Boriana Yontcheva, visited Bamako during November 19-29, 2019, to hold discussions on the first review of the economic and financial program supported by the IMF under the Extended Credit Facility (ECF).

At the end of the discussions, Ms. Yontcheva issued the following statement:

“The Malian authorities and IMF staff have reached a staff-level agreement on the first review of the economic and financial program supported by the IMF under the ECF, subject to approval by IMF management and Executive Board. Consideration by the IMF’s Executive Board is tentatively scheduled for early January 2020.

“Economic growth is expected to reach 5 percent in 2019 and over the medium term, despite the challenging security situation, reflecting some resilience in the economy. The general level of prices entered a deflationary trend in 2019, owing to good harvests following the abundant rainfall.

“The IMF mission and the Malian authorities reviewed the 2019 budget execution and the measures underpinning the draft 2020 budget. The fiscal deficit is expected to meet the West African Economic and Monetary Union (WAEMU)’s convergence criteria of 3 percent of GDP in 2019. Almost all performance criteria and indicative targets for end-September 2019, along with structural benchmarks, were met. Staff welcomed the significant improvement in tax collection. The authorities are committed to continuing their domestic revenue mobilization efforts to create the fiscal space needed to accommodate social, development and security spending while preserving macroeconomic stability and public debt sustainability. In addition to modernizing tax and customs departments, there is a need to accelerate the implementation of reforms geared toward digitalizing tax payments, further streamlining tax exemptions, including those granted to the mining sector, and improving petroleum products and property taxation.

“The IMF staff welcomed the ongoing efforts to reform the energy sector, including the state-owned electricity company’s (EDM.SA) plans to reach cost-recovery over the medium term, while ensuring better supply of electricity to the population.

“To achieve the program objectives for strong and inclusive growth and poverty reduction, the mission encourages the authorities to improve efficiency in public services delivery, including through pursuing reforms to improve governance. The mission also urges the authorities to redouble efforts in repaying domestic spending arrears in a timely fashion and further improving the business climate to foster private sector development and job creation.

“The team would like to thank the authorities, various stakeholders, and technical staff for their support and constructive discussions.”

The team met with the Prime Minister, Head of Government, Minister of Economy and Finance, Dr. Boubou Cissé, the Deputy Minister in Charge of Budget, Mrs. Aoua Sylla Barry; the National Director of the Central Bank of West African States, Mr. Konzo Traoré, senior officials, and development partners.

Source: International Monetary Fund