(Washington) Madagascar will be the first country to benefit from a strengthened joint framework between the IMF and the World Bank to stimulate climate action, via a $321 million loan released on Friday, the two announced organizations.
“Climate change is exacerbating poverty in Madagascar,” they noted in a joint press release.
“Through this framework, the coordinated efforts of the World Bank Group and the IMF (International Monetary Fund) will seek to further support the country’s resilience to climate change, in close collaboration with other development partners,” they said. they specified.
This strengthened collaboration between the two economic institutions was announced in May. It must help countries to intensify their actions in the face of the threat of climate change.
The Indian Ocean island will be able to benefit from this as part of a loan of around $321 million, validated on Friday by the IMF’s Executive Board, and granted under the “resilience and sustainability facility”.
Among the areas covered by this collaboration, the IMF and the World Bank cite “the promotion of green and resilient investments and adaptation interventions that will bring immediate development benefits.”
“Madagascar will also adopt a national strategy for mobilizing climate finance to strengthen its position as an attractive destination for climate-related investments,” the two organizations underlined.
They also say they are ready “to support a platform led by the country to mobilize programmatic climate financing and additional projects which could be implemented in 2025”.
The IMF also announced, also on Friday, that it had approved a loan of $337 million over 36 months for Madagascar, as part of a “resilience and sustainability facility”.
This sum nevertheless includes $312.4 million from a loan which was granted in March 2021, then canceled to be reinstated in the new envelope.