Abidjan- The International Monetary Fund (IMF) says is has completed the first and second review of programmes supported by its Extended Credit Facility (ECF) arrangement in Mali.
IMF’s Deputy Managing Director, Mr Naoyuki Shinohara stated this in a report issued at the end of the reviews and made available to the News Agency of Nigeria (NAN).
Shinohara said the Executive Board also approved the immediate disbursement of 11.7 million dollars to Mali under the ECF scheme.
He said the latest approval would bring the total disbursement to Mali under the ECF arrangement to 21 million dollars.
“Mali’s economy remains fragile; its recovery is under way. Economic prospects are clouded by a difficult security situation and the risk of an Ebola epidemic.
“Serious lapses in public financial management caused delays in the first review of the Fund-supported programmes and the provision of general budget support,’’ he said.
The IMF official said it was essential to tighten budget implementation and procurement rules in order to restore business, consumer, and donor confidence.
“The 2015 budget puts public finances back on a sustainable path; it appropriately emphasises revenue mobilisation, priority spending for growth and human development.
“It also encourages limited recourse to domestic financing, leaving room for bank financing of the private sector,’’ he said.
Shinohara said further efforts were urgently needed to strengthen public financial management, adding,“ tax policy and administration reforms need to be accelerated to raise the tax yield.’’
“Tighter expenditure control, supported by improvements in treasury management will help prevent the accumulation of arrears.
“ A conclusion of the audit of the outstanding domestic arrears and their rapid clearance will also support the economic recovery,’’ he said.(NAN)
