IMF approves disbursement of $60.7 million to Mozambique

AFRICAN BUSINESS AND ECONOMYJanuary 10, 2024 at 10:41 PM UTC

TLDR

IMF concludes third review of Mozambique's loan program, leading to immediate disbursement of $60.7 million to Maputo.
Total disbursements under the $456 million Extended Credit Facility program approved in 2022 now reach around $273 million.
Mozambique's program performance deemed satisfactory, with notable improvements in inflation and economic recovery.

The International Monetary Fund's (IMF) executive board has concluded the third review of Mozambique's three-year loan program, facilitating an immediate disbursement of approximately $60.7 million to Maputo, according to an announcement by the fund.

This brings the total disbursements under the $456 million Extended Credit Facility program, approved in 2022, to around $273 million.

The IMF noted that Mozambique's program performance has been satisfactory, highlighting a sharp decline in inflationary pressures and an accelerating economic recovery. The disbursements are part of the ongoing financial support to help Mozambique address economic challenges and implement necessary reforms outlined in the loan program.

Key Takeaways

The three-year arrangement with the International Monetary Fund (IMF) for Mozambique is designed to support economic recovery and implement policies aimed at reducing public debt and financing vulnerabilities. Additionally, it aims to create space for public investments in key areas such as human capital, climate adaptation, and infrastructure. The IMF program seeks to address economic challenges, promote sustainable development, and contribute to the overall stability and resilience of Mozambique's economy.

Mozambique

IMF

Extended Credit Facility