Mozambique is on track to attract foreign investment - CPLP
Photo courtesy: CTA
The International Monetary Fund (IMF) said on Thursday that it hoped the loan granted to Mozambique under its Rapid Credit Facility (RCF). following Cyclone Idai would mobilise the international community to help the country.
The IMF announced in April that it would grant Mozambique US$118.2 million interest-free loan to help the country address the effects of Cyclone Idai, which struck central Mozambique in mid-March.
“This credit has a signalling effect [for the international community], meaning that it is expected to signal to the entire international community and cooperation partners the need to support Mozambique,” IMF Resident Representative in Mozambique Ari Aisen said.
The credit will enable Mozambique to meet the financing shortfall caused by the emergency.
“The criterion of solidarity and friendship are key [for the decision on financial support], but also the technical criterion and the catalysing effect on the international community,” Aisen added.
Aisen said he believed that the loan announced by the organisation could generate more financial assistance from other international partners, and would be seen as a vote of confidence in the Mozambican government’s ability to manage international aid.
The credit is the first the IMF has granted Mozambique since it cut assistance in 2016 in the wake of the so-called ‘hidden debts’ scandal.
Cyclone Idai killed at least 603 people and destroyed extensive social and economic infrastructure in the provinces of Sofala, Manica, Tete and Zambezia.Source: Lusa
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