Mozambique seeks first IMF loan in five years

Mozambique is on the verge of securing the first loan in five years from the International Monetary Funds.

The IMF stated that discussions will begin next year on an extended credit facility, the first since it suspended the southern African country in 2016.

The credit will aim at boosting the country’s economic recovery from the pandemic, poverty reduction, equity growth and further aid in financing other nationwide development.

The Mozambican economy is recovering from a sharp contraction, following several years of economic shocks.

While the authorities have managed prudently and successfully addressed COVID and security-related challenges, including international support, concessional financing has now declined, and high public debt and tight financing constraints should be addressed through fiscal measures.

Mozambique which still grapples with the insecurity from the Jihadist fighters and the impacts of the ongoing Covid pandemic, it has also seen a contracting economy for the past three years.

Source: africanews