The case of Madagascar returns to the IMF Executive Board today. Fuel pricing policy is expected to be at the heart of the discussions, with a disbursement of $183 million at stake.
This is a crucial meeting. The IMF Executive Board will examine Madagascar’s file in Washington, USA. The meeting could be decisive for public finances, as it involves a potential disbursement of approximately $183 million.
According to the institution’s calendar, the agenda includes the third and fourth reviews of the Extended Credit Facility (ECF) arrangement, a request for a waiver for non-observance of a performance criterion, modification of performance criteria, review of financing assurances, and the third and fourth reviews of the Resilience and Sustainability Facility (RSF) arrangement. This meeting follows the postponement of Madagascar’s review, which was initially scheduled for July 17.
This delay has held up the $183 million disbursement planned under the ECF and RSF. The ECF is an IMF instrument designed to support countries with balance-of-payments needs and to back their economic reform programs. The RSF aims to support reforms to strengthen resilience against climate change. The disbursement of funds linked to these programs depends on compliance with commitments agreed upon between the IMF and the beneficiary state.
For Madagascar, these commitments mainly concern budgetary reforms and structural measures. Among the points submitted to the Executive Board is a “request for a waiver for non-observance of a performance criterion,” which concerns the non-application of the automatic fuel price adjustment mechanism. Since April, a state of energy emergency has been declared in the Great Island in response to global oil price fluctuations linked to the conflict in the Middle East, leading the government to return to price caps at the pump.
In early August, Minister of Economy and Finance Herinjatovo Aimé Ramiarison acknowledged that the fuel price issue had led the IMF Board to postpone the review. He indicated that the country intends to continue discussions with the institution, requesting a waiver regarding the automatic adjustment application and a modification of performance criteria.
While the Ministry did not respond to requests for comment, the Minister previously suggested that the need to preserve social peace and political stability is a key argument. “Madagascar cannot afford high inflation, which could risk triggering a social or political crisis,” he stated.
The desire to avoid a socio-political crisis did not convince the IMF Board in December 2024, leading to the initial postponement. As the country navigates these challenges, the IMF is seeking guarantees regarding fiscal sustainability, as price caps may necessitate state subsidies. The government is expected to present measures to strengthen tax revenues and control public spending, though recent actions—such as the suspension of taxes on imported rice—have raised questions. The outcome of the meeting is expected to be announced tomorrow by Eklou Kodjovi, the IMF Resident Representative in Madagascar, and Constant Lonkeng, head of the IMF mission.
Captured & Published at: 2026-09-30 05:54:23 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/09/conseil-dadministration-du-fmi.html
