FARAJA MGWABATI, 26th November 2009 @ 12:00, Total Comments: 0, Hits: 404
INTERNATIONAL Monetary Fund (IMF) has made available 63.4 Million US Dollars (about 82bn/-) to Tanzania, to support the country absorb the impact of economic crisis.
IMF Executive Board approved the amount this week, after completion of first review under the Exogenous Shock Facility (ESF).
ESF is an arrangement designed to provide policy support and financial assistance to low-income countries facing external temporary factors affecting their economy.
In a statement released by IMF and made available in Dar es Salaam, said after several years of high growth and strong macroeconomic performance, the Tanzanian economy is being affected by the global economic crisis, which is compounding challenges in food security, poverty alleviation and building infrastructure.
“Growth is expected to slow to a projected 5 per cent in 2009, from 7.1 per cent on average in the last three years. However, all assessment and performance criteria for end-June were met for the ESF review and there has been good progress in implementing structural reforms,” said the statement.
“The authorities’ forward-looking policy framework incorporates additional fiscal and monetary stimulus, to support growth and there are early signs of a nascent recovery.”
“Nevertheless, fiscal revenues remain weak and it will be important to observe control over expenditures, particularly given the need to respond to the drought in the region and address infrastructure weaknesses,” reads the statement in part.
The IMF Executive Board also completed the sixth review under a three-year Policy Support Instrument (PSI).
The IMF’s framework for PSIs is designed for low-income countries, that may not need IMF financial assistance, but still seek close co-operation with the fund in preparation and endorsement of their policy frameworks.
PSI-supported programmes are based on country-owned poverty reduction strategies, adopted in a participatory process involving civil society and development partners. Tanzania, which became a member of the IMF on September 10, 1962, has a Fund quota of SDR 198.90 million.
SDR is an international type of monetary reserve currency, created by the IMF, which operates as a supplement to the existing reserves of member countries.
Created in response to concerns about the limitations of gold and dollars as the sole means of settling international accounts, SDRs are designed to augment international liquidity by supplementing the standard reserve currencies.
In May this year, the Executive Board approved a one-year arrangement, under the high access component of the ESF in the amount of SDR 218.79 million originally approved on February 16, 2007 and extended through end-May 2010.
Total Comments on the above stories (0)
ADVERTISEMENT
Contacts:
TSN Daily News building, Samora Avenue, Plot No. 7, P.O.Box 9033, Dar es Salaam, Tanzania.
