Malagasy's Minister of Finance, Monsieur Ra Kotovao-Razakaboana, has outlined a new economic programme for the nation.
Malagasy's Minister of Finance, Monsieur Ra Kotovao-Razakaboana, has outlined a new economic programme for the nation. One of his major proposals involves the restructure of the country's banking system.
SYNOPSIS: The Minister of Finance held a news conference in Antananarivo, the capital, to outline his new reform plan. Since the strong leftist government came to power two years ago after the assassination of President Riciard Ratsimandrava, a policy of state ownership has been in force. The nationalisation of banks, insurance and natural resources were quick to come into effect. In a referendum adopted in 1975, the people of this Indian Ocean nation overwhelmingly endorsed a programme which aimed to turn the country on "the path of socialist salvation", according to the government. An intense nationalisation programme was established to solve the country's grave economic problems.
But, according to the Finance Minister, the nationalisation plan after the referendum was "not socialist". He said the state take-overs had not affected the majority of the population, and only a few were profiting from the agricultural reforms.
In order to solve the problem, from now on, the banks will be more specialised. There will be three different banks. One will control agricultural production, another will cover industrial affairs and a third will involve commercial activities. The first two have already been in operation on a provisional basis since the beginning of the