Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

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Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

  • A package of economic measures was also announced to ease liquidity constraints on ailing firms, including an SMEs-support guarantee fund, clearing the budget spending float, granting.
  • On March 21, 2020, the BCEAO had also announced: (i) an extension of the collateral framework to access central bank refinancing to include bank loans to prequalified 1,700 private companies; (ii) a framework inviting banks to accommodate demands from firms with Covid19-related repayment difficulties to postpone for a 3 month renewable period debt service falling due, without the need to classify such postponed claims as NPL; and (iii) measures to promote the use of electronic payments.
  • Special Fund: the Malian private sector contributes CFAF 500 million.
  • Islamic Development Bank (IDB): US$ 22.5 million to support Government's efforts.
  • social measures that will cost the State almost 500 billion francs, in the low hypotheses.
  • All the domestic debt due on 31 December 2019 will be cleared, as long as the payment of mandates for the financial year 2020 up to CFAF 100 billion is made.
  • The Private Sector Guarantee Fund will be endowed with an amount of CFAF 20 billion to guarantee the financing needs of SMEs, Decentralized Financial Systems, industries and certain large enterprises affected by the pandemic.

Employment-related measures

(e.g. state compensation schemes, training…)

  • The government unveiled a package of social measures to support the most vulnerable households. These measures include the setup of a special fund to provide targeted income support to the poorest households, a mass distribution of grain and food for livestock to poorest households, the supply of electricity and water free of charge to the poorest consumers for the months of April and May 2020, a 3-month exemption from VAT on electricity and water tariffs, and a 3-month exemption from customs duties on the import of basic food (rice and milk).

Other measures and sources

  • The government has updated its medical response plan to prevent the spread of COVID-19 and strengthen its medical care capacity, in collaboration with the World Health Organization, now costed at about 0.5 percent of GDP (including bonuses to health workers). The government is also working with the World Bank to enhance its medical care capacity, notably in terms of medical equipment (respirators, quarantine facilities, etc.).

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