The International Monetary Fund (IMF) has approved a three-year, SDR55 million ($80.8 million) arrangement under the Poverty Reduction and Growth Facility (PRGF) for the Republic of Madagascar to support the government's economic programme for 2006-2008.

The IMF also stated that it intends to activate the Trade Integration Mechanism (TIM) in light of the possible impact on Madagascar from the end of textile quotas of the WTO’s Agreement on Textiles and Clothing in 2005 and the implementation of the US African Growth and Opportunities Act (AGOA) in 2007. Should the impact of these measures be greater than anticipated, the TIM would allow an augmentation of the PRGF by up to 10% of quota, or SDR12.2 million.