World Bank suspends direct funding to Mozambique budget

28 April 2016

The World Bank has suspended direct financial aid to Mozambique’s general budget after the International Monetary Fund (IMF) made a similar move on 15 April 15, the Wall Street Journal reported Wednesday.

The decision by the International Monetary Fund, now backed by the World Bank is due to Mozambique hiding loans amounting to US$1.38 billion from both institutions.

The World Bank will continue, however, to provide support for individual projects, but will defer payment of US$40 million to support the implementation of the State Budget for 2016.

This year the World Bank has already provided US$70 million to Mozambique in direct support to the state budget of a total commitment of US$110 million.

The International Monetary Fund in December approved a financial aid package to Mozambique worth US$283 million, whose agreement required the Mozambican authorities to disclose all loans at regular meetings with Fund staff. (macauhub/MZ)