The Board of the International Monetary Fund (IMF) has approved a disbursement of $567.25 million to Tanzania to help the country finance its urgent balance of payments needs arising from the Covid-19 Pandemic.
The financing package comprises $189.08 million under the Rapid Credit Facility (RCF) and a purchase equivalent to $378.17 million under the Rapid Financing Instrument (RFI).
Needs
In a statement on Tuesday, the Fund said Tanzania is in urgent need of a balance of payment support that is equivalent to about 1.5 percent of the gross domestic Product (GDP) as the authorities implement a comprehensive plan to mitigate the effects of the pandemic and preserve macroeconomic stability in the face of a reported third wave of the virus.
The disbursement under the RCF and purchase under the RFI will help finance the interventions needed to mitigate the severe socio-economic impacts of the pandemic and help catalyse support from development partners.
“The Covid-19 pandemic has negatively impacted Tanzania’s macroeconomic outlook and the health and wellbeing of its population. Growth decelerated in 2020 and is expected to remain subdued in 2021, increasing poverty and negatively affecting employment,” said Bo Li, IMF Deputy Managing Director and Chair of the Board.