Press Release No. 18/91

IMF Reaches Staff-Level Agreement with Mali on 2018 Article IV Consultation and Eighth Review under ECF Arrangement

March 16, 2018

• Staff-level agreement was reached with the authorities on the eighth review of Mali’s economic and financial program supported by the Fund’s Extended Credit Facility (ECF), and the 2018 Article IV consultation.
• The 2018 budget provides a good basis for fiscal policy.
• Decisive implementation of structural reforms including of mandatory asset declaration by senior public officials will be key for sustainable economic growth and continued donor support.

An International Monetary Fund (IMF) mission led by Boriana Yontcheva visited Bamako during March 12–16, 2018 to complete discussions on the eighth review of Mali’s economic and financial program supported by the Fund’s Extended Credit Facility (ECF), and the 2018 Article IV consultation. Discussions were initiated during October 29–November 11, 2017.

At the conclusion of the mission, Ms. Yontcheva issued the following statement:

“The Malian authorities and IMF staff have reached a staff-level agreement on the 2018 Article IV and eighth review under the ECF, subject to approval by IMF management and Executive Board. Consideration of the staff report for the 2018 article IV and Eight review by the Executive Board is expected in April 2018. Completion of the review will make available SDR 31.65 million (about US$ 46 million).

“Mali’s economic recovery continued in 2017 amid persistent security challenges. GDP growth remained robust, at an estimated 5.3 percent supported by good harvests and robust domestic demand. Inflation was subdued, remaining well below the regional ceiling. Fiscal performance exceeded program expectations. The 2017 fiscal deficit was contained to 3 percent of GDP as expenditures were cut in response to shortfall in external support of about 0.8 percent of GDP and revenues came slightly above target. The macroeconomic outlook remains broadly positive, but the economy faces increasing downside risks going forward, notably due to the volatile security situation, while possible spending pressures during an election year, and a projected shortfall in external support pose fiscal risks.

“The 2018 budget is in line with the program targets and the goal of converging to the WAEMU’s regional deficit norm of 3 percent of GDP by 2019. The IMF mission and the authorities agreed on the need to pursue public financial management reforms to enhance the execution of pro-poor spending.

“The Malian authorities have succeeded in moving the governance reform forward. Following various consultations with civil servant unions about the scope of asset declarations by governments officials to the Supreme Court, the government and key stakeholders agreed that the law will be fully applied to the most senior officials who are explicitly mentioned in the law (some 1479 officials). Senior officials will be informed about the obligation to declare their assets, and reminders and sanctions will be applied to those who fail to report by the official deadlines. The multi-stakeholders panel will keep working on how to move the reform forward.

“The staff team would like to thank the authorities and their private sector counterparts for their support, hospitality and constructive discussions.”

The team met with the Prime Minister, Soumeylou Boubèye Maïga; Minister of Economy and Finance, Dr. Boubou Cissé; Minister of Justice, Hamidou Younoussa Maïga; Minister of Labor and Public Service, in charge of Relations with Institutions, Diarra Raky Talla; Economic Advisor to the President, Ibrahim Bocar Ba; the President of the Supreme Court, Nouhoum Tapily; the President of the Anti-Corruption Office (OCLEI), Moumouni Guindo; the National Director of the Central Bank of West African States, Konzo Traoré, senior government officials, and development partners.