Mozambique requests new IMF loan program; discussions with IMF staff to begin soon

Mozambique requests new IMF loan program; discussions with IMF staff to begin soon

Mozambique has requested a new loan program from the International Monetary Fund (IMF), with initial discussions between the IMF staff and the Mozambican authorities set to commence soon. The request follows the country's ongoing efforts to address economic challenges and bolster its resilience to climate change.

The IMF's Executive Board is tentatively scheduled to meet in mid-June 2025 to consider the request, which aims to enhance Mozambique's resilience to climate change and support its long-term macroeconomic stability. The proposed loan program, under the Resilience and Sustainability Facility (RSF), would contribute to the country's climate agenda and policy space.

The IMF team, led by Eva Jenkner, held discussions in Banjul, The Gambia, from April 2 to April 16, 2025, and reached staff-level agreement on the third review of the authorities' reform program supported under the Extended Credit Facility (ECF). This agreement would enable a disbursement of SDR 12.44 million (about US$16.8 million), bringing the total disbursement under the arrangement to SDR 37.71 million (about US$51.0 million).

The Gambian authorities and the IMF team also reached staff-level agreement on the request for access under the RSF for potential access of SDR 46.65 million (about US$65 million). The IMF Executive Board is tentatively scheduled to meet in mid-June 2025 to consider the request.

Mozambique's economic outlook remains positive, with economic growth increasing to 6 percent in 2024 and inflation returning to a single digit in early 2025. The country has made progress in implementing a homegrown economic reform program despite challenges to fiscal policy.

The IMF will continue to work closely with the Mozambican authorities and stands ready to help them through financing, policy advice, and strong technical assistance.

References:
[1] https://www.miragenews.com/imf-gambia-agree-on-resilience-credit-facility-1445796/