The International Monetary Fund (IMF) has approved a $567.25 million loan for Tanzania, aimed at helping the country finance its urgent balance of payments needs arising from the global 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).
According to the Fund, Tanzania is in urgent need of a balance of payment support that is equivalent to about 1.5% of the GDP. Thus, 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.
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.