The board of directors of the International Monetary Fund (IMF) has approved a $ 567.25 million disbursement to Tanzania to help finance its urgent balance of payments needs due to the Covid-19 pandemic.
< Financing The package includes $ 189.08 million under the Rapid Credit Facility (RCF) and a purchase worth $ 378.17 million under the Rapid Financing Instrument (RFI).
In a statement on Tuesday, the fund said Tanzania is in urgent need of balance of payments support equivalent to around 1.5 percent of gross domestic product (GDP) as authorities put in place a comprehensive plan to mitigate the effects of the pandemic and maintain macroeconomic stability in the face of a reported third wave of the virus.
The withdrawal under the RCF and purchase under the RFI will help fund the necessary interventions to bring the sch to mitigate the major socio-economic impact of the pandemic and to catalyze support from development partners.
“The Covid-19 pan Demik has had a negative impact on Tanzania’s macroeconomic prospects as well as the health and well-being of the population. Growth has slowed in 2020 and is expected to remain subdued in 2021, exacerbating poverty and negatively impacting employment, “said Bo Li, Deputy Managing Director and Chairman of the IMF.
” Tanzania’s risk of overseas – and national debt The need has increased to moderate, mainly due to the effects of the pandemic on tourism exports. “