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The International Monetary Fund on Wednesday approved the third and fourth reviews of Madagascar’s bailout program, clearing the way for the immediate disbursement of roughly $155 million in funds for the southern African island nation.
The impoverished nation saw nationwide protests last year that overthrew the government, and saw the military take over shortly thereafter.
“The Republic of Madagascar is undergoing a political transition, at a time of heightened vulnerability, following tropical cyclones earlier this year and amid spillovers from the war in the Middle East,” said the IMF’s Deputy Managing Director Nigel Clarke in a statement.
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“These developments have exacerbated policy trade-offs and further underscored the need for a long-term view in public policy.”
Madagascar reached an agreement in mid-2024 for a three-year $680 million bailout from the multilateral lender of last resort.
The IMF has so far disbursed roughly $260 million of that amount. Madagascar has about $200 million in previous debt to the IMF coming due by next year.
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Real GDP growth is down, per IMF estimates, with the US-Israel war on Iran driving up oil import prices and recent cyclones requiring reconstruction work.
The IMF’s Clarke called for subsidy measures adopted in the wake of the war to target the country’s most vulnerable in order to help redirect resources toward education, health and social protection programs.
With inflation at an estimated 9.3 percent in 2026, the IMF called on Madagascar’s central bank to further tighten monetary policy if price pressures persist.
