Mozambique: Government negotiates loan of US$120 million with World Bank and IMF

19 May 2009

Maputo, Mozambique, 19 May – The government of Mozambique is negotiating a loan of US$120 million with the World Bank and the International Monetary Fund (IMF) to ensure the stability of the country’s macroeconomic indicators, independent newspaper O País reported.

“An initial evaluation carried out by the government showed that there was an immediate need for US$120 million to ensure the stability of macroeconomic indicators,” said the country’s Minister for Development and Planning, Aiuba Cuereneia, according to the paper.

The Mozambican mining sector has been hit by the global financial crisis, which has led to a drop in exports of raw materials, and thus the country’s economic growth will slow this year.

“In our case, we had to lower projections for GDP growth, as a result of the direct impact of slowed demand for Mozambique’s main exports, specifically aluminium, cotton, cashews and sea products,” Cuereneia said.

The Mozambican economy posted average annual growth of 8.5 percent between 100 and 2007, but slowed to 6.2 percent in 2008 due to flooding in some areas and drought in others.

The IMF has forecast economic growth for Mozambique this year of 4.3 percent. (macauhub)