Praising Mozambique’s economy, IMF grants US$ 2.3 million credits

21 December 2005

Washington, USA, 21 Dec – The International Monetary Fund said Wednesday that it is “satisfied” with the development of Mozambique’s economy in 2005, approving an additional loan of US$ 2.3 million for projects to stimulate the economy and reduce poverty.

Despite rising oil prices and the negative impact of a drought this year, IMF Assistant-Director Takatoshi Kato said “the Mozambican economy continued to register good performance in 2005 and the Maputo authorities must be congratulated, particularly for “maintaining macroeconomic stability, robust economic growth, and good fiscal performance.”

The government should press on with state sector reforms and decentralization of administration currently in progress, said an IMF statement, and Mozambique must make full use of development opportunities presented by the transfer of control by Portugal to Maputo of the Cahora Bassa hydroelectric dam.

Following this week’s IMF evaluation, the Mozambican authorities will receive loans totalling US$ 2.3 million to fuel the economy and combat poverty.

A total US$ 9.4 million will be released to Maputo under the latest IMF support package. Credit from the international financial body carries a 0.5 percent annual interest rate to be paid back over 10 years, with deferment period of over five years for repayment of main instalments. (macauhub)