IMF provides Mozambique with US$22.6 million loan for anti-crisis aid

10 December 2009

Washington, USA, 10 July – The International Monetary Fund (IMF) said Tuesday that it would provide Mozambique with a loan of US$22.6 million, the second payment under the terms of a recent anti-crisis aid package.

In a statement the IMF said that, despite the negative effects of the crisis on the Mozambican economy, it had shown “unexpected robustness” thanks in part to the “timely response of the authorities in making macroeconomic policies flexible.”

“It is expected that economic performance will improve in 2010, benefiting from the upturn in the global economy,” with economic growth of some 5.5 percent, as compared to a projected 4.5 percent in 2009.

Over the last three years Mozambique has seen average growth of 7.5 percent.

The IMF noted that policy implementation is being carried out by the Mozambican authorities as outlined in the agreement and structural reforms are being implemented at a good rate.

By the end of June, it noted, almost all quantitative targets will have been reached.

This was the IMF’s first review under the Exogenous Shocks Facility (ESF – one year) and the fifth under the terms of the Policy Support Instrument (PSI – three years).

On signing the ESF, in May, Mozambique received the first payment of around US$136.32 million. (macauhub)