IMF-Mozambique discuss debt reformCountry struggles to repay its debts Mozambique has approached the International Monetary Fund to ask for urgent financial support. The International Monetary Fund will begin discussing a new programme for Mozambique after the country asked for urgent financial support.The initial talks will run from 1 December to December 12 when IMF officials led by mission chief Michel Lazare visit the country, the IMF said in an e-mailed statement on Monday.
The country has taken steps toward stabilising the economy to clear the way for discussions, the fund said. The IMF had earlier said it wanted Mozambique to improve its macroeconomic policies and start an audit of public debt.
In September, “the authorities requested the fund to resume discussions on financial support as soon as possible,” the IMF said in the statement.
“Since then, these conditions have been met, opening the way to the upcoming mission.”
The IMF was joined by other donors in suspending assistance to Mozambique after the government in April disclosed loans that it had previously kept hidden, and the fund has insisted on an international audit.
The country''s deepening debt crisis has rattled the economy, with growth forecast to slow to 4.5% this year, about half the average in the decade through 2007, and the metical has dropped more than 35% against the dollar since January.
The IMF said its discussions with Mozambique are expected to continue into the first part of next year.
While the country is one of the world''s poorest, the government says that discoveries of vast natural-gas deposits in recent years hold the potential to boost revenue and buoy the economy.