IMF approves loan of $60.7 million to Mozambique

The International Monetary Fund (IMF) has completed its third evaluation of Mozambique’s three-year loan program, paving the way for an immediate disbursement of approximately $60.7 million to the country.

The executive board of the International Monetary Fund (IMF) has completed the third evaluation of Mozambique’s three-year loan program, marking a significant milestone in the country’s economic engagement with the IMF.

Following the successful review, the IMF has greenlit an immediate disbursement of approximately $60.7 million to the country, in accordance with the program’s objectives and criteria.

With this recent disbursement, the total funds disbursed within the framework of the $456 million Extended Credit Facility program, initiated back in 2022, have reached an approximate sum of $273 million, showcasing a substantial allocation toward Mozambique’s economic endeavors.

In a statement released on Monday, the IMF acknowledged the satisfactory progress of the program, emphasizing key indicators such as a noticeable reduction in inflationary pressures and a significant uptick in the pace of economic recovery. These positive trends underline the program’s effectiveness in addressing economic challenges.

The overarching objective of the three-year arrangement remains steadfast: to provide crucial support for Mozambique’s ongoing efforts towards economic recuperation. This initiative concurrently endeavors to implement policies geared towards curbing public debt while addressing financial vulnerabilities prevalent within the country’s economic landscape.

Furthermore, according to the IMF, the program emphasizes the creation of avenues for public investment in pivotal sectors, placing particular emphasis on human capital development, climate adaptation measures, and bolstering essential infrastructure. These targeted investments are envisioned to fortify Mozambique’s socio-economic foundations and foster sustainable growth prospects.

The IMF’s affirmation of Mozambique’s satisfactory performance within the program highlights the country’s commitment to implementing the suggestions made by the IMF in order to attain growth and resilience in the face of economic challenges, despite the polemic character of the organism.

Overall, this recent milestone underscores the collaborative efforts between Mozambique and the IMF.

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