IMF Approves $176 Million
Loan For Mozambique
The
International Monetary Fund, (IMF) has approved a
$176 million loan to Mozambique to help cushion the
effects of the global economic slowdown.
IMF representative Felix Fischer said the loan would
be payable in 10 years, after an interest-free grace
period of five years, followed by annual rate of 0.5
percent.
’’ The IMF financing will help Mozambique offset the
deterioration of its balance of payments, which has
been undermined by the global economic downturn,’’
Fischer was quoted as saying.
Review concluded
The approval was made following a visit by the
fund's executive board, which completed a review of
Mozambique's economic performance under the
three-year Policy Support Instrument (PSI) approved
in June 2007.
Fischer said IMF continued to project a 4.3 percent
growth for Mozambique in 2009. Mozambique's economy
grew by around 6.5 percent in 2008.
The Executive Board's Managing Director Takatoshi
Kato urged Mozambique to diversify its economy to
become more competitive.
Reuters/Qasim/Yinka