Africa Budget Coronavirus DFI Economy Finance Government Mozambique

World Bank and IMF injects MZN21B into Mozambique’s 2020 budget

The World Bank and the International Monetary Fund (IMF) will inject just over 21 billion meticais [around US$313.4 million, at current exchange rates] into Mozambique’s 2020 State Budget to help mitigate the impact of the COVID-19 pandemic in the country.

Following the appeal made by the government of Filipe Nyusi to international cooperation partners, the support from the World Bank and the IMF is fresh money, and guaranteed to mitigate the initial economic impacts of the new coronavirus.

@Verdade learned from the State Budget proposal for this year that “(…) Direct Budget Support is foreseen under the financing of the International Monetary Fund and the World Bank within the scope of support to the Government to face the impact of the COVID-19, worth 21 billion meticais, equivalent to 2.1 percent of the Gross Domestic Product”.

The document was approved last Friday (April 3) in an extraordinary session of the Council of Ministers and submitted earlier this week to the Assembly of the Republic. It indicates that the equivalent of 11 billion meticais will be donated by the World Bank, and the equivalent of 9.9 billion meticais will be made available by the IMF as a loan.

Still regarding international support for this year’s State Budget, @Verdade learned that the Nyusi government can still count on an additional 19.9 billion in donations and some 25.9 billion in multilateral and bilateral credits for specific projects included in the State Budget.

Source: A Verdade via Club of Mozambique

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: