IMF board approves $ 7.3 billion program for Mozambique

The Board of Directors of the International Monetary Fund approved on Monday a $ 456 million (Rand 7.3 billion) extended three-year credit grant agreement for Mozambique, with approximately $ 91 million available for immediate disbursement. , the Fund said.

The facility is the South East African nation’s first program since the global lender suspended support six years ago.

The IMF said the three-year deal will help support economic recovery and policies to reduce public debt and finance vulnerabilities, while creating space for public investment in human capital, climate adaptation and infrastructure.

The Fund said the program will support a reform agenda focused on creating a sovereign wealth fund to manage the country’s liquefied natural gas wealth, mobilizing tax revenues and strengthening public finances.

“Mozambique has handled the Covid-19 pandemic relatively well, maintaining macroeconomic stability and the momentum of reforms even as the country has withstood a series of shocks, culminating in the effects of the war in Ukraine,” said the deputy director general. IMF Bo Li in a note. . “With political space now limited, supporting the ongoing economic recovery and addressing debt vulnerabilities are top priorities.”

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