IMF Board Approves $1.04 Billion Loan Deal for Tanzania

Date:

Share post:

The International Monetary Fund (IMF) announced on Monday that its Board of Directors has approved a $1.04 billion loan agreement for Tanzania with a term of 40 months and an immediate disbursement extended line of credit of about $151, 7 million.

The IMF said in a statement that the financing package will support Tanzania’s economic recovery, address the impact of the Russian invasion of Ukraine, help maintain macroeconomic stability and support structural reforms.

Imf

Also, read; Zimbabwean Women Craft Locally Made Sanitary Pads To Keep Girls From Missing School

“Reforms will focus on strengthening fiscal space for much-needed social spending and high-yield public investment, resuming and advancing the authorities’ structural reform agenda, and strengthening financial stability,” the fund said.

The ECF mechanism, equivalent to 795.58 Special Drawing Rights, or 200% of the country’s quota or IMF share, follows the approximately $561.5 million in IMF emergency assistance in 2021.

The Monetary fund has attempted to convert small-scale COVID-19 support loans into traditional long-term loan packages that require policy reform.

The IMF said the new agreement aims to “catalyze additional bilateral and multilateral financial support” and help attract private sector investment.

The effects of the war in Ukraine have delayed Tanzania’s gradual recovery from the COVID-19 pandemic, the IMF said.

Tanzania faces “significant development and reform challenges and external headwinds, including the scars of COVID-19 and the war in Ukraine, (which) risk eroding hard-won economic gains,” the deputy director said in the IMF statement.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Related articles

Australian Gold Miner Resolute to Pay Mali $160M to Secure Release of CEO and Executives

Australian gold mining company Resolute Mining has agreed to pay $160 million to the government of Mali following...

Ethiopia Opens Doors to Foreign Banks with Landmark Legislation

Ethiopia’s parliament has approved a historic law allowing foreign banks to operate in the country, signaling a major...

Nigerian Senate Proposes Ban on Dollar and Other Foreign Currencies for Local Transactions

The Nigerian Senate has introduced a bill to prohibit the use of foreign currencies, including the U.S. dollar,...

Cameroon to Host 2026 WTO Ministerial Conference, Showcasing Africa’s Trade Potential

Cameroon is set to host the World Trade Organization’s (WTO) 14th Ministerial Conference (MC14) from March 26–29, 2026....