The International Monetary Fund (IMF) announced on Tuesday the approval of a financial assistance program for more than 1,000 million dollars to Tanzania to help economic recovery and mitigate the effects of the war in Ukraine.
The 40-month financing package will help economic recovery and address the effects of the Russian invasion of Ukraine, help preserve macroeconomic stability and support structural reforms towards inclusive and sustainable growth, in line with the Government’s priorities.” reads the statement published in Washington.
The Expanded Financing Program (ECF) was agreed for a total of US$1,046 million, around €1,020 million, of which US$151.7 million (€148 million) will be disbursed immediately to this African country that limits , to the south, with Mozambique.
The reforms will focus on strengthening the necessary fiscal space for social spending and high-return public investmentto return to the agenda of structural reforms and the strengthening of financial stability.
The impacts of the war in Ukraine are hindering the gradual recovery of the economy, after the Covid-19 pandemic, and are increasing the challenges for development and reforms, which therefore cannot unlock its economic potential. The Fund’s support will also “stimulate private sector investment and catalyze financial support from development partners.”
Source: Observadora
