Abstract
Second Review Under the Extended Credit Facility Arrangement and Request for Modification of Performance Criteria-Press Release; and Staff Report
Fund Relations
(As of September 30, 2017)
| Membership Status: Joined: September 25, 1963; | Article VIII |
| Membership Status: Joined: September 25, 1963; | Article VIII |
| General Resources Account: | SDR Million | %Quota |
| Quota | 244.40 | 100.00 |
| Fund Holdings of currency | 213.78 | 87.47 |
| Reserve Tranche Position | 30.62 | 12.53 |
| General Resources Account: | SDR Million | %Quota |
| Quota | 244.40 | 100.00 |
| Fund Holdings of currency | 213.78 | 87.47 |
| Reserve Tranche Position | 30.62 | 12.53 |
| SDR Department: | SDR Million | %Allocation |
| Net cumulative allocation | 117.09 | 100.00 |
| Holdings | 9.36 | 8.00 |
| SDR Department: | SDR Million | %Allocation |
| Net cumulative allocation | 117.09 | 100.00 |
| Holdings | 9.36 | 8.00 |
| Outstanding Purchases and Loans: | SDR Million | %Quota |
| RCF Loans | 61.10 | 25.00 |
| ECF Arrangements | 99.30 | 40.63 |
| Outstanding Purchases and Loans: | SDR Million | %Quota |
| RCF Loans | 61.10 | 25.00 |
| ECF Arrangements | 99.30 | 40.63 |
Latest Financial Arrangements:
Formerly PRGF.
Projected Payments to Fund1
(SDR Million; based on existing use of resources and present holdings of SDRs):
When a member has overdue financial obligation outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2017 | 2018 | 2019 | 2020 | 2021 | |
| Principal | 5.89 | 3.06 | 6.11 | 12.22 | |
| Charges/Interest | 0.15 | 0.59 | 0.59 | 0.59 | 0.58 |
| Total | 0.15 | 6.48 | 3.64 | 6.70 | 12.80 |
When a member has overdue financial obligation outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2017 | 2018 | 2019 | 2020 | 2021 | |
| Principal | 5.89 | 3.06 | 6.11 | 12.22 | |
| Charges/Interest | 0.15 | 0.59 | 0.59 | 0.59 | 0.58 |
| Total | 0.15 | 6.48 | 3.64 | 6.70 | 12.80 |
When a member has overdue financial obligation outstanding for more than three months, the amount of such arrears will be shown in this section.
Implementation of HIPC Initiative:
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhance framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
| I. Commitment of HIPC assistance | Enhanced Framework | |||
| Decision point date | Dec 2000 | |||
| Assistance committed by all creditors (US$ Million)1 | 835.7 | |||
| Of which: IMF assistance (US$ million) | 1 9 .1 7 | |||
| (SDR equivalent in millions) | 14.73 | |||
| Completion point date | Oct 2004 | |||
| II. Disbursement of IMF assistance (SDR Million) | ||||
| Assistance disbursed to the member | 14.73 | |||
| Interim assistance | 5.62 | |||
| Completion point balance | 9.11 | |||
| Additional disbursement of interest income2 | 1.69 | |||
| Total disbursements | 16.42 | |||
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhance framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
| I. Commitment of HIPC assistance | Enhanced Framework | |||
| Decision point date | Dec 2000 | |||
| Assistance committed by all creditors (US$ Million)1 | 835.7 | |||
| Of which: IMF assistance (US$ million) | 1 9 .1 7 | |||
| (SDR equivalent in millions) | 14.73 | |||
| Completion point date | Oct 2004 | |||
| II. Disbursement of IMF assistance (SDR Million) | ||||
| Assistance disbursed to the member | 14.73 | |||
| Interim assistance | 5.62 | |||
| Completion point balance | 9.11 | |||
| Additional disbursement of interest income2 | 1.69 | |||
| Total disbursements | 16.42 | |||
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhance framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
Implementation of Multilateral Debt Relief Initiative (MDRI):
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as end-2004 that remains outstanding at the time the member qualifies for such debt relief.
| I. MDRI – eligible debt (SDR Million)1 | 137.29 | |
| Financed by: MDRI Trust | 128.50 | |
| Remaining HIPC resources | 8.79 | |
| II. Debt Relief by Facility (SDR Million) | ||
| Eligible Debt | ||||
|---|---|---|---|---|
| Delivery Date | GRA | PRGF | Total | |
| January 2006 | N/A | 137.29 | 137.29 | |
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as end-2004 that remains outstanding at the time the member qualifies for such debt relief.
| I. MDRI – eligible debt (SDR Million)1 | 137.29 | |
| Financed by: MDRI Trust | 128.50 | |
| Remaining HIPC resources | 8.79 | |
| II. Debt Relief by Facility (SDR Million) | ||
| Eligible Debt | ||||
|---|---|---|---|---|
| Delivery Date | GRA | PRGF | Total | |
| January 2006 | N/A | 137.29 | 137.29 | |
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as end-2004 that remains outstanding at the time the member qualifies for such debt relief.
Implementation of Catastrophe Containment and Relief (CCR): Not Applicable.
Safeguards Assessments:
An update safeguards assessment of the central bank—Banky Foibeni Madagasikara (BFM)—was completed in March 2017. Previous assessments were completed in March 2006, September 2008, and January 2015. The updated safeguards assessment found that progress had been made in implementing recommendations made in the 2015 assessment, including strengthening the legal framework and establishing an audit committee to oversee the internal and external audit process. However, delays in the publication of audited financial statements and an outdated accounting framework undermine transparency. In addition, risks in currency operations and reserves management are elevated. While the BFM received technical assistance on internal audit and financial reporting in the past two years, capacity constraints have hindered progress.
Exchange Rate Arrangement:
The currency of the Republic of Madagascar is the Malagasy Ariary. The de jure exchange rate arrangement is floating. The exchange rate is determined in the official interbank market. The BFM intervenes in the interbank market to smooth large exchange rate fluctuations and meet foreign reserve targets. Information on BFM daily interventions is not publicly available. The minimum, maximum, and weighted average daily rates as well as the number and amount of transactions are made available to the public through the BFM official site. The de facto exchange rate arrangement is classified as floating.
The exchange rate followed a pre-determined path until September 2015, and has been free-floating since. The BFM undertook buyback operations in the foreign exchange market for several months in 2015 which artificially maintained the published exchange rate at a more appreciated level than the market exchange rate. The buyback operations were discontinued in September 2015 and the official exchange rate depreciated by about 10 percent against the US Dollar at that time (when the official exchange rate converged with the market exchange rate).
The Republic of Madagascar accepted the obligations of Article VIII of the IMF Articles of Agreement with effect from September 18, 1996. The Republic of Madagascar maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions.
Article IV Consultation:
The most recent Article IV consultation was concluded on June 28, 2017 (Country Report No. 17/223).
Financial Sector Assessment Program (FSAP), Reports on Observance of Standards and Codes (ROSCs), and Offshore Financial Center (OFC) Assessments:
FSAP completed in July 2016.
Technical Assistance:
Technical assistance provided to Madagascar following the normalization of relations in March, 2014 are listed below.
| Fiscal Affairs Department (FAD) | Year of delivery |
|---|---|
| Diagnostic Mission: Improving Tax and Customs Revenue Collection | 2014 |
| PFM Reform Strategy | 2014 |
| Medium-Term Fiscal Framework (MTFF) | 2014 |
| Energy Subsidy Reform | 2014 |
| Tax Policy Review | 2014 |
| MTFF and Natural Resources Management | 2014 |
| Tax Administration: Review of the legal framework for taxation of mining and petroleum operations | 2015 |
| Revenue Mobilization: Transfer pricing | 2015 |
| Budget Formulation: Strengthening medium-term macro fiscal and budget frameworks | 2015 |
| Customs Administration: Risk management and post clearance audit | 2015 |
| Revenue Administration: Action plan to improve tax and customs revenue collection | 2015 |
| Public Expenditure Management: Control and audit on public expenditure | 2015 |
| Management of Expenditure Arrears | 2015 |
| Medium-Term Budgeting, Budget Classification, and Natural Resource Management | 2016 |
| MTEF and Fiscal Strategy Paper | 2016 |
| Public Investment Management Assessment | 2016 |
| Revenue and Customs Administration (AFS) | 2016 |
| Management of Arrears and VAT Refunds | 2016 |
| Public Investment Management Assessment (joint mission with AFS and the World Bank} | 2016 |
| Medium-Term Budget Framework: Developing manual | 2016 |
| Data Matching of Customs and Domestic Tax Data (AFS) | 2017 |
| Medium-Term Budget Framework and Public Investment | 2017 |
| Fiscal Risk Management | 2017 |
| Tax Incentives Regimes: Evaluation and Recommendations. | 2017 |
| Monetary and Capital Markets Department (MCM) | |
| Technical Assistance Needs Assessment Diagnostic | 2014 |
| Introduction of IFRS in Central Bank Accounting | 2015 |
| Strengthening Internal Audit and Controls | 2015 |
| Transitioning to a Modern Monetary Policy Operational Framework | 2015 |
| Set Objectives for Monetary Policy (AFS) | 2015 |
| Coherent Approach to Monetary Policy Formulation (AFS) | 2015 |
| Liquidity Management and Forecasting (AFS) | 2015 |
| Functioning of the Interbank Foreign Exchange Market (AFS) | 2015 |
| Strengthening Internal Audit | 2015 |
| Inflation Analysis and Forecasting (AFS) | 2015 |
| Central Bank Accounting and Auditing | 2016 |
| Foreign Exchange Operations (AFS) | 2016 |
| Monetary Policy Communication (AFS) | 2016 |
| Inflation Analysis and Forecasting | 2016 |
| Risk Based Supervision | 2016 |
| Liquidity Management and Implementation of Repo Agreements (AFS) | 2017 |
| Internal Audit and Risk Management | 2017 |
| Regulation and Functioning of the Interbank Foreign Exchange Market (AFS) | 2017 |
| Monetary Policy Implementation and the Money Market | 2017 |
| Legal Department (LEG) and Monetary and Capital Markets Department (MCM) | |
| Central Banking Law | 2014 |
| Legal Department (LEG) | |
| Governance Reform: Anti-Corruption Legislation | 2017 |
| Statistics Department (STA) | |
| National Accounts (AFS) | 2015 |
| Balance of Payments Statistics | 2015 |
| Multisector Statistics | 2015 |
| Monetary and Financial Statistics | 2015 |
| National Accounts (AFS) | 2015 |
| Price Statistics (AFS) | 2016 |
| National Accounts (AFS) | 2016 |
| Open Data Initiative | 2016 |
| Government Finance Statistics | 2016 |
| Monetary and Financial Statistics | 2016 |
| National Accounts (AFS) | 2017 |
| Balance of Payments Statistics | 2017 |
| Price Statistics (AFS) | 2017 |
| Fiscal Affairs Department (FAD) | Year of delivery |
|---|---|
| Diagnostic Mission: Improving Tax and Customs Revenue Collection | 2014 |
| PFM Reform Strategy | 2014 |
| Medium-Term Fiscal Framework (MTFF) | 2014 |
| Energy Subsidy Reform | 2014 |
| Tax Policy Review | 2014 |
| MTFF and Natural Resources Management | 2014 |
| Tax Administration: Review of the legal framework for taxation of mining and petroleum operations | 2015 |
| Revenue Mobilization: Transfer pricing | 2015 |
| Budget Formulation: Strengthening medium-term macro fiscal and budget frameworks | 2015 |
| Customs Administration: Risk management and post clearance audit | 2015 |
| Revenue Administration: Action plan to improve tax and customs revenue collection | 2015 |
| Public Expenditure Management: Control and audit on public expenditure | 2015 |
| Management of Expenditure Arrears | 2015 |
| Medium-Term Budgeting, Budget Classification, and Natural Resource Management | 2016 |
| MTEF and Fiscal Strategy Paper | 2016 |
| Public Investment Management Assessment | 2016 |
| Revenue and Customs Administration (AFS) | 2016 |
| Management of Arrears and VAT Refunds | 2016 |
| Public Investment Management Assessment (joint mission with AFS and the World Bank} | 2016 |
| Medium-Term Budget Framework: Developing manual | 2016 |
| Data Matching of Customs and Domestic Tax Data (AFS) | 2017 |
| Medium-Term Budget Framework and Public Investment | 2017 |
| Fiscal Risk Management | 2017 |
| Tax Incentives Regimes: Evaluation and Recommendations. | 2017 |
| Monetary and Capital Markets Department (MCM) | |
| Technical Assistance Needs Assessment Diagnostic | 2014 |
| Introduction of IFRS in Central Bank Accounting | 2015 |
| Strengthening Internal Audit and Controls | 2015 |
| Transitioning to a Modern Monetary Policy Operational Framework | 2015 |
| Set Objectives for Monetary Policy (AFS) | 2015 |
| Coherent Approach to Monetary Policy Formulation (AFS) | 2015 |
| Liquidity Management and Forecasting (AFS) | 2015 |
| Functioning of the Interbank Foreign Exchange Market (AFS) | 2015 |
| Strengthening Internal Audit | 2015 |
| Inflation Analysis and Forecasting (AFS) | 2015 |
| Central Bank Accounting and Auditing | 2016 |
| Foreign Exchange Operations (AFS) | 2016 |
| Monetary Policy Communication (AFS) | 2016 |
| Inflation Analysis and Forecasting | 2016 |
| Risk Based Supervision | 2016 |
| Liquidity Management and Implementation of Repo Agreements (AFS) | 2017 |
| Internal Audit and Risk Management | 2017 |
| Regulation and Functioning of the Interbank Foreign Exchange Market (AFS) | 2017 |
| Monetary Policy Implementation and the Money Market | 2017 |
| Legal Department (LEG) and Monetary and Capital Markets Department (MCM) | |
| Central Banking Law | 2014 |
| Legal Department (LEG) | |
| Governance Reform: Anti-Corruption Legislation | 2017 |
| Statistics Department (STA) | |
| National Accounts (AFS) | 2015 |
| Balance of Payments Statistics | 2015 |
| Multisector Statistics | 2015 |
| Monetary and Financial Statistics | 2015 |
| National Accounts (AFS) | 2015 |
| Price Statistics (AFS) | 2016 |
| National Accounts (AFS) | 2016 |
| Open Data Initiative | 2016 |
| Government Finance Statistics | 2016 |
| Monetary and Financial Statistics | 2016 |
| National Accounts (AFS) | 2017 |
| Balance of Payments Statistics | 2017 |
| Price Statistics (AFS) | 2017 |
Resident Representative:
Mr. Patrick Imam has been the Resident Representative since September 2014.