IMF loan helps stabilize Mozambican economy

17 December 2015

A loan of US$286 million taken on by Mozambique from the International Monetary Fund (IMF) will help stabilise the country’s economy, the Governor of the Bank of Mozambique said Wednesday in Maputo.

Ernesto Gove, on the sidelines of a conference to sum up the economic situation in 2015, said that what is happening “is a shock to the balance of payments due to the fall in commodity prices.”

“The IMF has an obligation to look at these situational aspects, helping countries that are in similar situations,” said the governor of the Mozambican central bank.

Falling prices of gas, by 39 percent, coal (24 percent), the minerals extracted from heavy minerals (18 percent), aluminium (6 percent), cotton (20 percent) and shrimp (11 percent), have adversely affected export earnings of Mozambique.

“The situation on the international market is not the best for us, total exports fell by 9.3 percent,” said the governor, adding that foreign direct investment also fell by 15.2 percent compared to 2014.

However, Gove gave a positive assessment of 2015 warning, meanwhile, that the country is consuming more than it produces, which creates a “structural deficit in the balance.” (macauhub/MZ)