Mali: IMF announces financing of 74 Billion FCFA
The International Monetary Fund (IMF) announced on April 30, 2024, that it has signed an agreement with the transitional government to provide $120 million, approximately 74 billion FCFA, in emergency funds to Mali.
A delegation from the IMF and Malian transitional authorities reached an agreement on emergency financing under the IMF’s Rapid Credit Facility (RCF) « exogenous shocks » window, according to a statement from the financial institution.
This funding is intended for importing food commodities and providing liquidity for money transfers. It will significantly help alleviate the inflation caused by the war in Ukraine, the blockade of the Red Sea, and the contraction of West African financing, all of which have strained Mali’s budget.
In other words, this assistance from the IMF to Mali aims to support the provision of food and targeted cash transfers to people facing food insecurity (now a quarter of the Malian population), as well as expenses for education, health, and access to clean water.
Since the coup, the country has faced financial difficulties within the West African Economic and Monetary Union (WAEMU).
Three-quarters of Mali’s budget are allocated to debt service costs, security expenses, and civil service salaries.
