International Monetary Fund extends $309 million aid to Mozambique

In the latest of the assistance provided by the International Monetary Fund (IMF) to the African nations, Mozambique has been granted with an approval of a disbursement of $309 million to meet its urgent balance of payment and fiscal needs as a result of the COVID-19 crisis.

IMF Deputy Managing Director and Chair Tao Zhang said, “Mozambique is expected to be significantly affected by the COVID-19 pandemic, dashing prospects of a nascent economic recovery following two powerful tropical cyclones that struck in 2019”.

He added, “Given Mozambique’s limited fiscal space and high public debt, additional external support, preferably in the form of grants and highly concessional loans, is also urgently required to meet the country’s elevated financing needs and ease the financial burden of the pandemic.”

Several other African countries apart from Mozambique have earned the support of international organisations including the European Union, the International Monetary Fund and the World Bank to fight the economic crisis generated as a result of the coronavirus pandemic.

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