Summary: Context: Mali is emerging from the worst security and political crisis in its recent history. Progress in political normalization to date has been encouraging: a successful presidential election, formation of the new government and the legislative elections have demonstrated Mali’s commitment to its democratic tradition. The economy is on the mend as donor assistance and business confidence are gradually returning. But formidable challenges remain. On the political front, the government needs to consolidate peace and promote national reconciliation after the traumatic events of 2012. At the same time, it is striving to support a nascent economic recovery, maintain macroeconomic and financial stability, and restart the economic reform agenda. Request for an arrangement under the Extended Credit Facility: The authorities request Fund assistance under an ECF arrangement in an amount equivalent to SDR 30 million (about 32 percent of quota) in support of their medium-term program to reduce balance-of-payments vulnerabilities and lay foundations for stronger, more inclusive growth. Their reform efforts are focused on tax policy and revenue administration, public financial management and improving the business environment. Main policy recommendations: Implement an effective fiscal framework in 2014. Ensure effective deployment of donor aid toward priority spending. To help the economy’s recovery, clear existing domestic arrears and keep the recourse to domestic borrowing to a minimum. Keep foreign borrowing in line with debt sustainability. Step up public financial management reforms. Increase tax revenues by 0.5 percent of GDP a year by enforcing tax compliance, broadening the tax base and streamlining tax administration; strengthen treasury management and internal control to avoid emergence of new arrears. Accelerate reforms to improve business environment. Tackle weak governance; shore up financial sector stability and promote its development; and reform electricity and petroleum product pricing to protect the government budget and restore the electricity company’s financial integrity.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.