Madagascar's IMF Disbursement Delayed Over Fuel Price Adjustment Dispute

The International Monetary Fund has postponed the release of $183 million in budget support to Madagascar after the government suspended the automatic fuel‑price adjustment mechanism required under the Extended Credit Facility and the Resilience and Sustainability Facility. Finance Minister Herinjatovo Aimé Ramiarison told reporters that the move was not a withdrawal from the programme, saying, “It is not a withdrawal, but there are still points we need to discuss together.” He added that Madagascar meets almost all structural benchmarks and that the suspension was a response to an energy emergency caused by rising global oil prices.

The IMF board review originally scheduled for 17 July removed the fuel‑price issue from its agenda, delaying the disbursement. The government maintains that negotiations remain open and aims to explain the temporary suspension as a social‑economic necessity while continuing to pursue the broader reform agenda.