IMF open to resume financial support for Mozambique – report

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IMF open to resume financial support for Mozambique – report

3:32 CAT | 13 Nov 2019

Photo: Miramar

After a four-year suspension of financial support to the country following the so-called ‘hidden debt scandal, the International Monetary Fund (IMF) is now ready to resume financial support to Mozambique, dependent on the interest in specific programmes voiced by the new government to be formed in mid-January 2020.

This information was advanced this Wednesday morning at the IMF offices in Maputo by the head of mission Ricardo Velloso, who has been in the country since November 6th analysing recent economic developments and updating macroeconomic projections.

Ricardo Velloso stated at a press conference that the IMF is willing to support Mozambique either in technical consultations or assistance programmes, depending on what is convenient for the Mozambican executive.

On the economic front, the outlook for 2020 is good, and the IMF forecasts a strong recovery in economic activity and low inflation. Growth in the national economy is expected to reach around 5% driven by Idai post-cyclone reconstruction efforts, agricultural recovery, and payments to suppliers.

Concerning corruption and undeclared debt, the IMF mission welcomes “the continued efforts of the Attorney General’s Office to bring accountability to the issue of the previously undisclosed debts, as well as the Government’s initiatives to combat corruption and strengthen transparency,” Velloso said.

Source: Miramar