IMF grants an emergency loan to Mozambique

23 April 2019

The International Monetary Fund (IMF) has granted emergency financial support to Mozambique in the amount of US$118.2 million under the Rapid Credit Facility (RCF), the IMF said in a statement released in Washington.

The financial support is intended to address the large gaps in budgetary and external funding based on post-cyclone Idai reconstruction needs, which caused significant loss of life and damage to infrastructure, the statement said.

“It is estimated that emergency assistance and reconstruction costs are enormous, making the cyclone the worst and most destructive natural disaster to hit the country,” said Deputy Executive Director and interim Chairman, Tao Zhang, quoted in the statement.

Tao Zhang added that the IMF’s Disbursement under the Rapid Credit Facility aims to meet Mozambique’s immediate financing needs and work as a catalyst to secure donations from donors and the international community.

The financial support granted to Mozambique under the RCF has a zero percent interest rate, a grace period of 5.5 years and a final maturity of 10 years.

Recent information shows that the cyclone led to over 600 confirmed deaths, affected 1.8 million people and caused extensive infrastructural damage in Mozambique, and its effects were also felt in neighbouring Zimbabwe and Malawi. (Macauhub)