IMF grants a US$309 million loan to Mozambique

27 April 2020

The International Monetary Fund (IMF) has provided Mozambique with a loan of US$309 million, under the Rapid Credit Facility, to help the country overcome the urgent needs of the balance of payments and tax resulting from the Covid-19 pandemic, the IMF said.

The services, transport, agriculture, industry and communications sectors are experiencing disturbances due to a terrible external environment, thus affecting export sectors including mining.

The deputy executive director of the IMF, Tao Zhang, said there are fears that Mozambique will be significantly affected by this pandemic, a reality that will impact on the country’s recovery after two devastating tropical cyclones.

The emergency financial support from the IMF as part of the Rapid Credit Facility, along with additional funding from donations, will help to catalyse and contribute to meeting the urgent needs of the country’s balance of payments generated by the pandemic.

The authorities’ immediate priority, according to Tao Zhang, is to limit the impact of the pandemic and preserve macroeconomic and financial stability, by increasing expenditure on health and measures to protect the most vulnerable in society and support micro, small and medium-sized enterprises. (macauhub)