Covid-19: Government asks for US$700 million – finmin

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Covid-19: Government asks for US$700 million – finmin

2:29 CAT | 23 Mar 2020

File photo: O País

Following official confirmation of the first case of the new Covid-19 coronavirus in Mozambique, the Maputo executive has asked its external partners for US$700 million to help address the negative impacts of the pandemic, Minister of Economy and Finance, Adriano Maleiane revealed today (Monday).

Economic growth for this year has been revised downwards from an initial forecast of around 4% of gross domestic product to 2.2%, while the health budget has been revised upwards from US$30 million to US$50 million.

“Following recent events, the government has had to revise the budget allocation planned for this year. Public health has become a priority,” Minister of Health Armindo Tiago said as he left a meeting with external partners.

The International Monetary Fund (IMF) resident representative in Maputo, Ari Aisen, said that “Mozambique has many friends who will be able to help”, and that a request for an emergency fund payment could be submitted.

Aisen said support for Mozambique could come from the US$50 billion package recently approved by the IMF for countries affected by Covid-19.

The amount available for Mozambique would depend on the country’s share in the International Monetary Fund, Aisen explained.

By Edson Arante

Source: O País