$100 million, earmarked for the private sector

The private sector, the primary victim in the aftermath of the Malagasy political crisis, will receive $100 million in financial aid, within the framework of the economic recovery program.
According to Prime Minister Jacques Sylla, while Madagascar, as everyone knows, has just received around $2.5 billion in financial commitment from her partners, following the meeting of the financial sponsors which took place in Paris at the end of July 2002, around $1 billion will be available this year, $100 million of which is earmarked for the private sector.

Open-door-policy oblige, during open proceedings televised, live, on Sunday, the Prime Minister, along with a few members of his cabinet, had to elaborate on how, when, and where the financial donations, which the country has just received, will be spent.

The businessmen, and the handful of non-political organization members showed the government officials that they truly have a definite interest with regards to the management of these funds.
All the more so since, as Mr. Sylla indicated, 60% of this financial assistance are loans that Madagascar will have to pay back, sooner or later.
With preferential annual interest rates of no more than 3%, the financing terms vary between ten and forty years.
The Malagasy businessmen, based on the questions they asked of the government officials, were mainly interested in the eligibility criteria, and the procedures to follow, if one wants to take advantage of this financial assistance.
Narisoa Rajaonarivony, the deputy prime minister in charge of budget, maintained that the funds will be available starting in September, 2002.
Moreover, since the $100 million, earmarked for the private sector, are from various sources, the eligibility requirements depend on the financial partner.

As of now, there has been no official reaction, within the business sector, with regards to this financial “manna from heaven”.
The crisis has debilitated the majority of enterprises.
Today’s discussions revolves around the country’s reconstruction.
And every single move of the administration, which finds itself in a rather awkward situation, is scrutinized.
The economic recovery is definitely underway, but a lot remains to be done to boost consumer spending.
The prices of basic products have come down, but are still above their post-election crisis levels.
Additionally, due to increased unemployment in the technical sector, household income has slightly declined.

Translated by J. F. Razanamiadana