IMF Approves 60 Mln USD In Funding For Mozambique

MAPUTO, June 8 (UrduPoint / Pakistan Point News - 8th Jul, 2023 ) :The International Monetary Fund (IMF) said Friday that its executive board has completed the second review of a three-year loan program for Mozambique, which greenlights an immediate disbursement to Maputo of about 60.6 million U.S. Dollars.

The initiative aims at economic recovery, reducing public debt and financial vulnerability, while promoting inclusive growth through structural reforms in the southern African nation, the IMF said in a statement on Friday. It has brought Mozambique's total disbursements under the Extended Credit Facility arrangement to 212.09 million dollars.

According to the IMF review, based on the performance of the program, the Mozambican government adopted substantial measures to resolutely face the macroeconomic challenges and fully comply with the agency's requirements, in particular the maintenance of a fiscal perspective in line with the established targets.

In response to the IMF's announcement, the Mozambican government said that the financing is a demonstration of the financial institution's confidence in the country.

"This financing means that the country is implementing substantial policy reforms and measures, with a view to macroeconomic stability, inclusive growth, and that the IMF looks favorably on the Mozambican government's programs, measures and reforms that the government has been taking to implement and achieve the ultimate goal of inclusive growth," said Enilde Sarmento, national director of economic polices and development at the Ministry of Economy and Finance.