The postponement of IMF budget support disbursements has placed Madagascar in a delicate negotiation phase. In response to growing concerns, the State, through the Minister of Economy and Finance, is seeking to reassure the public.
Dr. Herinjatovo Aimé Ramiarison, Minister of Economy and Finance, stated on the sidelines of a Central Bank event in Anosy that the situation is not a withdrawal of support, but rather a matter requiring further discussion. The primary point of contention is the suspension of the automatic fuel price adjustment mechanism, which led the IMF to pause the disbursement of $183 million under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).
The government argues that freezing fuel prices is essential to maintain social peace and political stability amid global oil price volatility. While the IMF advocates for strict budgetary discipline, the Malagasy government emphasizes the need to contain inflationary pressures. The State is currently working to explain its position to the Bretton Woods institution, highlighting improvements in tax revenue collection and public spending control as compensatory measures, with the goal of having the matter reviewed by the IMF Board by the end of August.
Captured & Published at: 2026-08-06 05:53:34 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/08/blocage-des-aides-du-fmi-letat-rassure.html
