News Brief No. 96/9

News Brief: IMF Management Supports Madagascar's New Policy Framework

September 18, 1996

The Managing Director of the International Monetary Fund (IMF), Michel Camdessus, met today at the IMF with Norbert Lala Ratsirahonana, Prime Minister and Acting President of the Republic of Madagascar. The Prime Minister transmitted Madagascar's policy framework paper for 1996-99 and a request for an IMF arrangement under the enhanced structural adjustment facility, in support of the authorities' economic and financial program aimed at restoring financial stability and enhancing growth prospects. The Prime Minister also informed the IMF of Madagascar's acceptance of the obligations of Article VIII, Sections 2, 3, and 4 of the IMF's Articles of Agreement. IMF members accepting Article VIII obligations undertake to refrain from imposing restrictions on making payments and transfers for current international transactions or from engaging in discriminatory or multiple currency practices without IMF approval.

Camdessus welcomed the authorities' new policy framework, and said he is prepared to recommend the program to the IMF's Executive Board for its consideration and approval. Meanwhile, he encouraged the authorities to continue to implement the policies set out in their program, with a view to reviving the economy, strengthening confidence, and achieving financial stability.