IMF evaluates granting new Policy Support Instrument to Mozambican government

6 April 2010

Maputo, Mozambique, 6 Apr – The International Monetary Fund (IMF) will decide this June whether to grant a new three-year support to Mozambique, following on the current Policy Support Instrument whose results have been praised by the organization.

“The impressive economic growth of Mozambique, which has become an example for other African countries, has been supported by solid macroeconomic policies and structural reforms,” said Johannes Mueller, head of the IMF mission which last Wednesday ended talks with the Mozambican government on the new programme.

The government asked for new support from the IMF to continue reforms meant to improve tax administration and the management of public finances and to strengthen debt management.

That request “will be discussed by the IMF executive council in June,” along with final revision of the Policy Support Instrument and the Exogenous Shocks Facility (ESF) under the current programme, Mueller announced.

During its 15-31 March visit to Mozambique the mission reviewed the current PSI and met with various ministers to discuss the government’s economic programme which should be supported by the new IMF instrument.

“The Mozambican economy continues to perform strongly. After surpassing 6.0 percent growth in 2009 it is forecast to reach nearly 8.0 percent in the middle term, driven by strong public and private investment,” Mueller said.

Over the course of two weeks the IMF mission held several meetings with the Mozambican ministers of Finance (Michael Chang) and Planning and Development (Aiuba Cuereneia), the governor of the Central Bank (Ernesto Gouveia Gove) and private sector representatives.