The Mozambican government, through the Ministry of Economy and Finance, said on Friday that the approval of the second review of the Extended Credit Facility (ECF) by the International Monetary Fund (IMF) is a demonstration that the country is "on the right track".

On Thursday, the IMF approved the second revision of the ECF for Mozambique, guaranteeing a disbursement of 60.6 million dollars, and revised Gross Domestic Product (GDP) growth from 5 to 7%.

The national director of Economy and Development at the Ministry of Economy and Finance, Enilde Sarmento, told Lusa that the measure "means that the country's economy is on the right track".

"It means that the IMF takes a positive view of the government's program, the measures and reforms that the government has been implementing to achieve the ultimate development of inclusive economic growth and macroeconomic stability," Sarmento emphasized.

The decision, he continued, is also a good sign for the international financial markets and for investors to view Mozambique with optimism.

In the announcement, the IMF states that "in light of the mixed programmatic results, the [Mozambican] authorities have taken substantial measures to address the macroeconomic challenges with determination and keep the program on track, particularly with regard to reducing the wage bill and aligning the fiscal outlook with the program's objectives".

In the note accompanying the announcement of the approval of the second revision of the program approved in May 2022, which brings the total amount already received by Mozambique to 212.09 million dollars, out of a total of 456 million dollars, the IMF says that it allowed two criteria to be overlooked: the primary budget balance at the end of last year and the accumulation of external debts by the public sector.