The International Monetary Fund (IMF) on Wednesday approved the disbursement of $27.63 million to Mali, part of $193.5 million three-year loan secured in 2019, under extended credit facility.
An extended credit facility (ECF) allows the borrowing country to take out money over an extended period of time rather than reapplying for a loan each time it needs money.
The Executive Board of the IMF made the approval after completing the first review of Mali’s performance under its program supported by a three-year arrangement under the Extended Credit Facility (ECF).
The latest payment would bring total disbursements under the arrangement to $55.26 million.
IMF said The Extended Credit Facility (ECF)-supported program aims to maintain macroeconomic stability and to foster higher, more inclusive, and durable growth, adding that economic growth in Mali is expected to stabilize at 5 percent over the medium-term, but “downside risks are high, given the security challenges the country is facing”.
In completing the review, the Executive Board also approved Mali’s request for a waiver for the nonobservance of the quantitative performance criterion on the non-accumulation of domestic arrears.
The three-year arrangement was approved on August 28, 2019 for $193.5 million, equivalent of 75 percent of Mali’s quota in the IMF, to support the country’s economic and financial reforms.