IMF Guarantees Continued Financial Support to Mozambique

– Government to Introduce Measures to Ease Financial Pressure on Small and Medium-Sized Enterprises

By Ricardo Dias

Maputo (MOZTIMES) – The International Monetary Fund (IMF) will continue providing financial support to Mozambique through the Extended Credit Facility (ECF), said Pablo Lopez Murphy, head of a visiting IMF delegation, following a meeting with President Daniel Chapo in Maputo on 20 February.

The ECF is an IMF programme that offers medium-term financial assistance to low-income countries facing prolonged balance of payments challenges. Its objectives are to boost economic growth, reduce poverty, strengthen public finances, lower debt levels, modernise monetary policy, enhance growth potential, and build resilience to climate change.
Murphy stressed that the IMF recognises Mozambique’s significant potential and reaffirmed its commitment to working closely with the government to address existing challenges.
“There is a new government in office, so we came here to understand its priorities and to contribute towards supporting macroeconomic stability,” Murphy said. “The idea is to continue supporting Mozambique. We will work closely with the government to identify the best way to contribute”.
On Thursday, President Daniel Chapo also met with the Association of Commercial Banks to assess economic recovery measures.
Following the meeting, initiatives were announced to ease the financial pressure on Small and Medium-Sized Enterprises (SMEs), ensuring job retention and fostering economic growth.
The measures include restructuring the debt of SMEs affected directly or indirectly by the post-election crisis, in order to ease the financial strain on businesses, ensure their sustainability, and preserve jobs. Another initiative announced is the creation of subsidised credit lines for companies that are not indebted, but are in need of capital to boost their businesses, with estimated annual interest rates of 15 per cent. (RD)