The state-owned news agency AIM reported that 85.2 million SDRs, the first installment of the loan which is under IMF’s Standby Credit Facility (SCF), is available immediately.

loansMozambique requested the loan in late October, the first request of loans Mozambique has made for the past decade to the IMF.

The IMF was once a significant creditor, but all of Mozambique’s debts to the IMF were cancelled in December 2005.

After a Board meeting held last Friday, IMF Deputy Managing Director and Acting Chair, Zhu Min, issued a statement, reiterating the institution’s confidence in Mozambique’s long term prospects and expressing optimism that the current difficulties will prove temporary.

“Despite challenges, Mozambique’s economic growth continues to be robust and inflation remains low,” declared Zhu.

“However, lower commodity prices and a decline in foreign exchange inflows have generated a temporary balance of payments gap. The authorities have taken strong policy measures to preserve macroeconomic stability. Continued implementation of prudent policies under the standby credit facility will be essential to ensure debt sustainability, safeguard against external shocks, as well as promote strong and inclusive growth.”

A major factor worsening Mozambique’s foreign debt situation was the government-guaranteed loan of 850 million U.S. dollars which the Mozambique Tuna Company (EMATUM) took on the Eurobond market in 2013.

That loan is to be repaid over seven years, but the EMATUM fleet of 24 fishing vessels scarcely did any fishing at all in 2015.

Figures available in the government’s Economic and Social Plan for 2016 showed that in 2015 EMATUM fished just 300 tonnes of tuna. Enditem

Source: Xinhua

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