$80m poverty lift for Madagascar
2006-07-25 13:35
Antananarivo - The International Monetary Fund (IMF) has given Madagascar about $80m over the next three years to be spent on fighting poverty, the fund said.
"The IMF's decision to grant 55 million SDR or about $80m is an indication of the confidence that the IMF and other donors have in Madagascar," IMF representative Pierre van den Boogaerde said in a statement on Tuesday.
The money would be disbursed in seven instalments with the first arriving next week, Boogaerde said, adding that Madagascar needed to take further steps to boost its tax collection and open up to direct foreign investment.
Subsequent payments would depend on strict implementation of a budgetary plan agreed between Madagascar and the IMF.
"The most important thing is that the government become aware of the need to match its expenses to its insufficient receipts," Van den Boogaerde said.
Since President Marc Ravalomanana took power after a 2002 stand-off over a disputed election, he has wooed donors with tough economic reforms.
But the IMF has repeatedly warned Madagascar that its fiscal receipts are inadequate and public spending excessive.