IMF calls for clarification before resuming financial aid to Mozambique

16 October 2017

The resumption of financial aid to Mozambique depends on the government clarifying the fate of the funds obtained from loans from Credit Suisse and Russia’s VTB bank, the director of the International Monetary Fund’s Africa division said in Washington.

Abebe Aemro Selassie, quoted by Voice of America, said that the institution does not expect to reach an agreement to resume financial aid to Mozambique in 2018.

“There will be no talks on resuming the aid programme before the information gaps identified by the auditors are filled,” said the IMF board, who noted it was still waiting for for the Attorney General’s Office of the Republic of Mozambique to release the full text of the report drawn up by Kroll Associates UK and paid for by Sweden.

Among the critical points of the requirements are the clarification of where US$500 million was applied and the disclosure of the names of the government officials mentioned in the audit report.

The position now put forward by the IMF could be a blow to the Mozambican Minister of Economy and Finance, Adriano Maleiane, who had hoped he would leave Washington with the IMF block resolved.

On the meeting with the delegation headed by the Mozambican minister, Selassie said that “the dialogue was useful, with improved information on the macroeconomic situation about the adoption of fiscal reforms.” (macauhub)