(Ecofin Agency) – The multilateral financial institution underlines that remarkable progress has been made by Tanzania in the implementation of the reforms accompanying the financing program, despite a difficult global economic context.
The International Monetary Fund (IMF) announced, in a press release published on Thursday, June 20, 2024, that its board of directors has approved financing totaling $935.6 million for Tanzania to support the economic reforms and the fight against climate change.
Of this amount, a loan of 786.2 million will be disbursed over a period of 23 months under the Resilience and Sustainability Facility (FRD). This loan mechanism was launched in 2022 by the multilateral financial institution to help low- and middle-income countries address long-term structural challenges such as climate change. This funding will support reforms that should enable the East African country to strengthen its resilience to climate change.
An immediate disbursement of a new loan tranche of $149.4 million was also approved, as part of the Extended Credit Facility (ECF) agreement concluded between Dodoma and the IMF in July 2022.
The institution also underlined in its press release that remarkable progress has been made in the implementation of the reforms accompanying the financing program, despite a difficult global economic context.
“All the quantitative performance criteria and indicative objectives set for the end of December 2023 have been achieved. The authorities’ structural reform program is progressing well, as two of the three structural criteria for the end of December 2023 and one structural criterion for the end of January 2024 were met on time. This demonstrates the commitment of the authorities,” she indicated.
Welcoming a reduction in the current account deficit and a rebound in economic growth, the IMF estimated that the short-term priorities of the Tanzanian authorities consist of allowing exchange rate flexibility and implementing the fiscal consolidation planned in the budget, while preserving priority social spending.
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