The International Monetary Fund has approved a zero-rated $372.4 million loan for Tanzania, aimed at supporting the country’s COVID-19 pandemic relief measures.
The loan will be issued through the Fund’s Rapid Credit Facility (RCF) and is part of a $567.25 million package released in September under a blended RCF/Rapid Financing Instrument (RFI) programme.
The RCF disbursement will allow Tanzania to “take full advantage of its new eligibility to borrow from the fund on fully concessional terms,” the IMF said in a statement.
The IMF says the RCF disbursement will “help address Tanzania’s urgent balance of payment needs arising from the COVID-19 pandemic and provide it with concessional resources needed to take measures to mitigate the severe socio-economic impact of the pandemic.”
The country’s economic outlook has deteriorated due to the impact of the COVID-19 pandemic, with the growth expected to remain subdued in 2021.
Last year, the country’s economy reportedly decelerated to 4.8% growth, mainly due to the collapse in tourism activities in the wake of travel restrictions.