This statement provides updates on recent developments since the staff report was issued to the Executive Board and does not alter the thrust of the report and staff appraisal.
1. Preliminary results of the May 29 parliamentary elections were released by the National Electoral Commission (CENI) on June 11, 2024. The presidential party (“All together with Andry Rajoelina”) would obtain 80 seats out of 163, thus falling short of the absolute majority. Independent candidates would get 55 seats. The opposition would get 22 seats, with 6 other seats going to small parties. The final results will be announced by the High Constitutional Court at the end of June.
2. The prior actions set for Board consideration have been met.
The 2024 revised budget law was approved by both houses of Parliament on June 10 and 11, 2024. The budget is in line with the program fiscal framework. It includes an increase in alcohol excise taxes and provides for the projected fuel price subsidy resulting from the administration of retail fuel prices.
The authorities adopted a decree implementing an automatic fuel pricing mechanism (decree 2024-1205). Retail fuel prices will be adjusted before the fifth business day of every month based on the changes in the calculated reference prices between month M-2 and month M-1 and the differences between the administered retail prices and the calculated reference prices in month M-1, within a band of +/- 200 ariary per liter.
As indicated in the staff report, a new CEO for JIRAMA was appointed on May 1, 2024.