JOHANNESBURG — The International Monetary Fund said its executive board completed the second review of Mozambique’s three-year loan program, allowing for an immediate disbursement to Maputo of about $60.6 million.
The review brings total disbursements under the $456 million Extended Credit Facility program approved last year to about $212.09 million to date, the IMF said.
“Based on the mixed program performance, the authorities have taken substantive actions to resolutely address macroeconomic challenges and keep the program on track,” it said in a statement according to Reuters.
The three-year arrangement is expected to support economic recovery and policies to reduce public debt and financing vulnerabilities, while creating space for public investments in human capital, climate adaptation and infrastructure.
“While the outlook remains positive, significant risks remain, mainly due to adverse climate events and a fragile security situation,” IMF Deputy Managing Director Bo Li said.
In 2016, Mozambique unveiled hefty state-backed borrowing it had previously failed to disclose, in a $2-billion corruption scandal that prompted donors to cut off aid and sparked a currency collapse and debt crisis.
