IMF approves new "technical agreement" with Mozambique to release 55.9 million euros

FMI aprova novo “acordo técnico” com Moçambique para libertar 55,9 milhões de euros

The International Monetary Fund (IMF) and the Mozambican authorities have reached a technical agreement on economic policies to complete the fourth review of the Extended Credit Facility (ECF) agreement, which will allow an additional 55.9 million euros to be disbursed to Mozambique, the IMF announced in a statement last Friday (14).

A publication by VOA says that the discussions involving an IMF team, led by Pablo Lopez Murphy, and Mozambican authorities took place in Maputo from May 2 to 15, 2024 and continued virtually.

This staffing arrangement is subject to IMF management approval and Executive Board consideration. The arrangement was approved by the IMF Executive Board for SDR 340.8 million (about $456 million) on May 9, 2022.

In his statement, Murphy said that the country's economic growth "is projected at 4.3% in 2024", adding that tight financial conditions continue to weigh on Mozambican economic activity, but the medium-term outlook for the extractive sector is strong, as major LNG projects are expected to resume.

For his part, the IMF representative assessed the performance of this program in discussions with Mozambique as positive and reinforced the importance of sustained efforts to strengthen institutions, improve governance and increase transparency in order to reduce vulnerabilities to corruption, promote private investment, support domestic production and strengthen the position of the external sector.

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