World Bank approves funding for Mozambique

21 December 2010

Maputo, Mozambique, 21 Dec – The World Bank last week approved a loan of US$85 million to support the Mozambican state budget in 2011, the Mozambican press reported.

The funding will be applied in carrying out the second Plan of Action for Reduction of Absolute Poverty (PARPA II) and the funding will be provided via a financial instrument for policy development of the World Bank, called the Poverty Reduction Support Credit (PRSC).

According to the statement issued by the World Bank this is the seventh of a series of annual operations by the institution to support the State Budget since 2004, and shows a clear commitment from the World Bank to the country’s medium and long term objectives.

The document also said that the cash would fund reforms to improve macroeconomic management, expand the use of direct budgetary execution, increase coverage of internal control as well as coverage and efficiency of external audits. (macauhub)