Madagascar, first country to benefit from the IMF and WB climate mechanism

Madagascar will be the first country to benefit from a joint program of the International Monetary Fund (IMF) and the World Bank (WB) to stimulate action for the climatethrough a loan of US$ 321 million released on Friday, both organizations announced.

“Through this mechanism, the coordinated efforts of the World Bank Group and the IMF will seek to continue supporting the country’s capacity to adapt to climate change, in close collaboration with other development partners.“, the entities stated in a joint statement.

“Climate change is worsening poverty in Madagascar“, they remarked.

This collaboration program, which involves closer work between both multilateral institutions, was announced in May to help countries redouble their efforts in the face of the climate crisis.

This way, Madagascaran island in the Indian Ocean, will be able to benefit from a loan of US$ 321 million approved by the Executive Board of the IMF and granted within the framework of the “Resilience and Sustainability Line”.

Among the areas covered by this collaboration, the IMF and the B.M. quote “promoting green and resilient investments and adaptation interventions that will deliver immediate development benefits”.

“Madagascar will also adopt a national strategy to mobilize climate finance to strengthen its position as an attractive destination for climate-related investments.”, both organizations stressed.

He IMF also announced this Friday the approval of another loan of US$337 million over 36 months for Madagascar, as part of the same financing line. This sum already includes US$312.4 million of a loan granted in March 2021, which was later canceled and now reinstated in the new package.