Task force: the Roindefo government’s response to the economic recession

After the tourism’s one, a task force for the economic bounce back is put in place by the government of transition. This structure regrouping some economically orientated ministries, the INSTAT and the SAMIFIN (the local anti-money laundering money service) is presided by the Prime minister. It is put in charge of undertaking some short-term actions with quick results to boost economic sectors. 

The government of transition admits that the economy is victimized by the non recognition of the regime by the international community. The decrease of fund reserves and the frost of foreign money burden the financial health of the country. The task force’s actions will be orientated toward job creations and subsidies to operators, in particular to those that were victim of the depredations and fires at the time of the popular movement. 

The task force has for mission to improve the national statistics and the micro-company’s performance. It must reassure the banks and encourage them to make some loans. Guarantee funds are in studied to re-launch the hit sectors. The government also wishes to pressure on the operators in order to accelerate fund repatriation. The control on exchanges will be reinforced. 

“After the crisis, all indicators have gone down, either the fiscal or custom tax revenues “, conceded the chief of the transition government. Monja Roindefo recognizes that the country is confronted to an economic problem. “it is true that the foreign partnerships are not suspended but there is a receding of employment “, he has explained. The 6%growth forecasts won’t be reached, already announced the BAD. To the best, it will be 4%.  

Prime minister Roindefo confirmed that the economic recession is linked to the popular movement. He not as categorical on the recorded recession since the power takeover by Andry Rajoelina. “The state provides a supplementary effort to control the inflation “, he said.  

Out of question though to return to a controlled economy. Monja Roindefo justified himself after his government has been accused of paralysis facing the drastic increase of fuel prices. “A state intervention risks provoking shortages because the law of offer and demand, as well as the entrepreneurship liberty will be compromised “. 

Sign of the economic dullness, the increase of fuel prices doesn’t fail to drag an almost general inflation. It provokes the systematic psychosis among the consumers. The decrease of the crude oil price on the international market didn’t reflect at all on the local fuel prices. 

The risen prices practiced by distributors are explained on the one hand by the depreciation of the national currency, and by a consumption slowdown due to the decrease of the spending power, on the other hand. The inexpensive gas promised by Andry Rajoelina on the place of May 13th remained for the meantime an utopia.