IMF mission to visit Mozambique in June

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IMF mission to visit Mozambique in June

8:39 CAT | 24 May 2016

The International Monetary Fund (IMF) has rescheduled the mission to Mozambique that was cancelled when undisclosed government-guaranteed debt came to light in April.

At a press conference in Washington on Thursday, the Fund’s Director of Communications, Gerry Rice, explained that during meetings with the IMF, “the Mozambican authorities confirmed the existence of a large amount of borrowing that had not been previously disclosed to the Fund. Since then the Mozambican authorities have been working closely with us to ascertain the facts”.

He added, “we continue to work with the authorities constructively, evaluating the macroeconomic implications of this disclosure, and a staff visit to Maputo is planned for June 2016”.

The mission had been originally scheduled for April and May. However, that was cancelled because of the disclosure.

As well as delaying the IMF mission to Mozambique, the Bretton Woods institution also suspended the second instalment of the loan of 283 million US dollars from its Standby Credit Facility (SCF). The first instalment of 118.9 million dollars was made available in December.

In December the IMF explained that the Standby Credit Facility was made available “to augment reserves and maintain macroeconomic stability” with the aim “to alleviate the external balance of payments shocks and, through strengthening macroeconomic stability, to achieve the government’s goals on poverty reduction and inclusive growth”.

Source: AIM