The International Monetary Fund (IMF) has given the green light to the second review of the Extended Credit Facility (ECF) programme for Mozambique, providing a disbursement of 60.6 million dollars (55.3 million euros) and revising the gross domestic product (GDP) growth estimate from 5% to 7%. This decision reaffirms, according to Mozambique's Ministry of Economy and Finance, the nation's positive trajectory.
The IMF's seal of approval on the second ECF review was announced last Thursday. Enilde Sarmento, National Director of Economy and Development at Mozambique's Ministry of Economy and Finance, commenting on the decision to Lusa news agency, stressed that the IMF's endorsement is a positive sign for the national economy.
Sarmento stressed that this result is proof of the IMF's favourable view of the Mozambican government's actions, including the ongoing reforms aimed at achieving inclusive economic growth and macroeconomic stability. She added that this decision is a positive signal for international financial markets and for an optimistic perception of Mozambique among investors.
In response to mixed programme performance, the Mozambican authorities took substantial action to resolutely confront the macroeconomic challenges and keep the programme on track, especially with regard to reducing the wage bill and aligning fiscal outlooks with the programme's objectives, according to the IMF's announcement.
The note accompanying the announcement states that the total amount already received by Mozambique following approval of the second review of the programme begun in May 2022 reaches 212.09 million dollars (194 million euros), out of a total of 456 million dollars (418 million euros). The IMF also granted flexibility on two criteria: last year's primary fiscal balance and the accumulation of external debt by the public sector.
