Madagascar | The IMF and the World Bank release their first joint climate loan

(Washington) Madagascar will be the first country to benefit from a reinforced joint working framework between the IMF and the World Bank to stimulate action in favor of the climate, via a loan of 321 million dollars 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 it as part of a loan of approximately $321 million, validated Friday by the IMF Executive Board, and granted under the “resilience and recovery facility”. sustainability “.

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 in order to strengthen its position as an attractive destination for climate-related investments,” underlined the two organizations.

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.


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