IMF Approves Mozambique Financial Aid after Suspension

IMF Approves Mozambique Financial Aid after Suspension

The International Monetary Fund, IMF, has approved financial assistance for Mozambique, the first such aid by the fund to the country after a six-year suspension.

The suspension was imposed after the country was found to have more than $2.7bn (£2bn) of undisclosed state debts money which the government borrowed to set up a sophisticated tuna industry to buy trawlers and military patrol boats, but much of it was allegedly diverted to corrupt officials.

 

The son of Mozambique’s ex-president and 18 others went on trial last year over the “tuna bonds” affair. They have not yet commented on the charges.

The IMF board on Monday approved a three-year $456m (£369m) aid that will support economic recovery and help reduce public debt.

“With this programme, the decision taken today to approve the agreement negotiated with the government, we will also obtain additional resources for the financing of the economy, not only the resources in the agreement financed by the fund, but it also opens the window of opportunities for funding by other partners,” Mozambican Prime Minister, Max Tonela said.

BBC/Christopher Ojilere

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