The government and the International Monetary Fund (IMF) have initialed an agreement to finance Mozambique with 470 million dollars over three years. After six years of suspension of IMF support, this agreement provides for close monitoring of the application of the amount.

According to the spokesman of the Ministry of Economy and Finance (MEF), Alfredo Mutombene, this monitoring process will be done by the IMF Executive Board with the right to several evaluations, based on ongoing performance criteria and indicative targets.

"The IMF will make quarterly visits to assess the country's macroeconomic situation and monitor progress on the different targets and reforms under the program," Mutombene was quoted as saying by Domingo.

The IMF technical team will also give a semi-annual report to its Executive Board on the country's progress. Monitoring teams have been established at the MEF for each of the reforms to report to the Council of Ministers, Parliament, and civil society where applicable.

In this sense, among several measures, the new debts to be contracted should also have a low concessioning level, with lower interest rates and a higher maturity level; there should also be strict control over the Net International Reserves (NIR) of the Bank of Mozambique and the settlement of the overdue balances of the external debt service should be carried out.

"The biggest challenge is to maintain the trajectory of economic growth, and at the level of the Economic and Social Plan (PES), for this year, there was an expectation of growth in 2.8 percent of GDP, but with the adjustments made in the medium-term fiscal scenario, which is an instrument that makes the projection for three years, the new projections indicate 3.8 percent for 2022 and 4.5 percent for the period from 2023 to 2025," said Mutombene.

The first disbursement of $91.3 million - 30 percent of the total - was scheduled to take place now in May. This tranche is for direct support to the State Budget, and part of it is for social action and debt sustainability.

The second tranche of $60.9 million should go into the State Treasury on September 15. And in the following semesters, the loan amount will be $60.9 million over three years.