EIB gives Madagascar €300-million loan for infrastructure

21 May 2015

The European Investment Bank (EIB) has given Madagascar a €300-million ($333-million) loan to rehabilitate roads, power and energy infrastructure.

The president’s office in Madagascar said in a statement late on Tuesday that the EIB loan would also help in emergency repair work resulting from cyclone damage.

Following President Hery Rajaonarimampianina’s election in 2013, donors, including the International Monetary Fund and World Bank resumed lending to Madagascar.

Madagascar’s economy showed early signs of recovery in 2014 with growth estimated at 3%, which could rise to 5% in 2015, but political instability, weak institutions and weak governance are hurting prospects, the IMF has said.


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