Resumption of IMF financial support opens up good prospects for Mozambique: minister

IMF

The recent decision by the International Monetary Fund (IMF) to approve a $470 million aid package and resume direct budget support to Mozambique opens up good prospects for the country’s development process, the radio reported on Tuesday. Mozambican Public Service (RM). .

The remarks were made by Economy and Finance Minister Max Tonela, who told RM during his visit to Washington DC that the move represents an important step in the country’s relationship with the international financial market.

“With this program, we will also obtain additional resources for the financing of the economy, not only the resources that are in the agreement financed by the Fund, but will also open the window of financing opportunities for other partners” , RM said quoting Tonela.

The minister revealed that the World Bank will directly support the state budget soon with a US$300 million package later this year.

“We are also in the process of mobilizing several partners who needed this signal to formalize the support we have in our portfolio,” he said.

Implementation of the three-year program will begin in June, with improving public debt management and macro-economic, fiscal and structural reforms as priorities, according to the report.

The IMF’s decision to resume direct support to the Mozambican state budget came six years after it was suspended due to the ‘hidden debt’ scandal.

In 2016, the Mozambican government revealed that it had taken out loans of more than two billion US dollars in 2013 and 2014 for three state-owned security-related companies without informing parliament and international donors, which led to the suspension of IMF aid. and most donors in the country. Final article

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