IMF Approves Loan For Mali, Encourages Reforms

IMF Approves Loan For Mali, Encourages Reforms

One of the world’s poorest economies, Mali is recovering from Islamist rebel advances and has been approved for an $15.1 million loan from International Monetary Fund to help revive its economy, according to Independent Online.

The IMF last approved a $18.4 million loan to Mali in January to help stabilize the economy.

The latest funds come from the IMF’s Rapid Credit Facility, which helps countries urgently in debt, and should send a signal to other donors that Mali’s economy is on the right path, the report says.

French-led military intervention helped stop an advance of Islamist rebels in Mali. Budget support and project aid has resumed to the country, a leading producer of gold and cotton, according to Independent Online. In May, donors pledged $4 billion to help Mali recover from the conflict.

But the country’s economy and peace are still at risk, the IMF said in the report.

“The adoption of the road map toward presidential and parliamentary elections in July, the restoration of government control over the full territory with the help of foreign military intervention and the return of donor support are helping set the stage for a resumption of growth,” said Min Zhu, IMF deputy managing director, in a prepared statement.

Reforming Mali’s energy sector and clearing all outstanding debt by the end of 2013 should help support the government’s finances, but in the future, the government should do a better job keeping track of its cash, the IMF said in the Independent Online report.