IMF releases $282.9m Mozambican loan request


The International Monetary Fund (IMF) says it has approved a request by the Mozambican government for a loan of $282.9 million Special Drawing Rights (SDRs) under the Fund’s Standby Credit Facility (SCF), APA can report on Wednesday.An IMF media statement emailed to APA says the Board of the bank took the decision last Friday, and the first installment of the loan, which is $118.9 million is available immediately.

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Mozambique requested the loan in late October.

The request came following a decade in which Mozambique owed no money at all to the IMF.

The IMF was once a significant creditor, but all of Mozambique’s debts to it were cancelled in December 2005, under the Multilateral Debt Relief Initiative (MDRI).

Since then, Mozambique has taken no further loans from the IMF, until now.

Instead, Mozambique has had a Policy Support Instrument (PSI), which is an instrument for countries that are not asking for loans from the IMF.

The IMF itself describes the PSI as “a flexible tool that enables these countries to secure fund advice and support without a borrowing arrangement�.

In theory, a PSI “helps countries design effective economic programmes that deliver clear signals to donors, multilateral development banks and markets of the Fund’s endorsement of the strength of a member’s policies

Babatunde Akinsola
Babatunde Akinsola
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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