The near term macroeconomic outlook remains favorable, although there are considerable downside risks from the fragile security conditions, commodity prices changes, and weather conditions; program implementation is broadly on track.

On December 10, 2018, the Executive Board of the International Monetary Fund (IMF) completed the Tenth Review of Mali’s performance under an economic program supported by an Extended Credit Facility (ECF) arrangement. [1]Completion of the review enables the immediate disbursement of SDR 31.65 million (about US$43.85 million), bringing total disbursements under the arrangement to SDR 186.6 million (about US$ 258.53 million) or 100 percent of quota.

The ECF arrangement for Mali was approved on December 18, 2013 for SDR 30 million (about US$46.2 million, or 32 percent of quota at the time see Press Release No. 13/524). [2]

Additional access of SDR 68 million (about US$94.21 million), or 73 percent of quota at the time, was approved on June 9, 2016. It was followed by an augmentation of SDR 88.6 million (about US$122.75 million), or 47.5 percent of Mali’s quota approved on July 7, 2017 along with a one-year extension of the program, bringing Mali’s access under the ECF arrangement to SDR 186. 6 million (about US$258.53 million) or 100 percent of quota.

Following the Executive Board’s discussion on Mali, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement: [3]

“Mali’s economic performance over the course of the ECF‑supported program has been broadly positive. Macroeconomic stability has been restored under difficult circumstances marked by persistent insecurity, volatile commodity prices, and adverse weather conditions. While the ECF‑supported program catalyzed financing from international donors, the authorities’ reforms over the last five years helped create the foundations for solid growth and subdued inflation. However, meaningfully reducing poverty has remained a challenge.

“Program implementation was broadly on track at end‑June 2018, although progress on structural reforms has been slower than expected. The authorities are taking important steps to address the tax revenue shortfall in 2018, including through intensified revenue collection and spending cuts.

“The near‑term macroeconomic outlook remains favorable, although there are considerable downside risks from the fragile security conditions, commodity prices changes, and weather conditions. The 2019 draft budget provides an adequate basis for fiscal policy and reflects the authorities’ commitment to meeting the WAEMU fiscal deficit target. Pursuing ambitious fiscal reforms going forward would help address emerging fiscal risks and make room for needed security, social and capital spending, while maintaining a sustainable deficit. Steadfast efforts to improve public finance and debt management would also boost the policy framework.

“To build upon and sustain the progress achieved, the authorities should pursue the structural reforms set in motion during the program to promote private activity, economic diversification, and foster sustained, inclusive growth.”