Once again, the issue of fuel prices has become a stumbling block for Madagascar’s file at the International Monetary Fund (IMF), leading the financial institution to postpone the disbursement of 183 million dollars.
The Madagascar file was removed from the agenda of the IMF Executive Board meeting on July 17, effectively delaying the decision on a new budgetary aid package. The Board was scheduled to review the 3rd and 4th assessments of the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF), but the item was withdrawn without further explanation.
The primary reason for this postponement appears to be the Malagasy government’s decision to cap fuel prices under the state of energy emergency. While the government deems this necessary to mitigate the impact of rising global oil prices due to Middle East tensions, the IMF has consistently advocated for an automatic fuel price adjustment mechanism to eliminate state subsidies and reflect true market costs.
This mechanism has long been a point of contention between the Malagasy state and the Bretton Woods institutions. Despite the delay, the Ministry of Economy and Finance remains optimistic, stating that public treasury remains sustainable and that the IMF is simply requesting additional information on how the state intends to financially support this policy. The government expects the IMF Board to review the file again in the coming weeks.
Captured & Published at: 2026-08-01 05:53:46 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/08/aide-budgetaire-le-fmi-reporte-un.html
