International Monetary Fund approves loan to Mozambique

2 July 2009

Washington, USA, 2 July – The International Monetary Fund (IMF) Wednesday approved a loan to Mozambique of US$176 million to minimise the negative effects of the international financial crisis on the Mozambican economy.

Approval of the loan comes in response to a request made by the Mozambican authorities to the IMF under the terms of the institution’s Exogenous Shocks Facility (ESF).

With the loan approved, around US$132 million will be provided immediately so that Mozambique can use the cash to mitigate the effects of the crisis.

On Tuesday, the administrator for the Bank of Mozambique, Waldemar de Sousa, said that since 2008 the country has experienced greater pressure on international reserves because exports are falling and also because foreign aid is more difficult to secure.

The IMF’s statement said that it believed that the loan amount approved Wednesday would help Mozambique to invert the negative trend of the balance of payments.

The ESF was drawn up to provide concessional financial aid to eligible low income countries to face temporary exogenous shocks. (macauhub)