The IMF approved a debt relief worth $14.3M over the next four months to free Tanzania’s resources for emergency needs. The IMF will also grant Tanzania additional relief to cover the period between October-April 2020, bringing its total to $25.7M.
Tanzania faces weakened revenues from tourism, in addition to a projected GDP deceleration as a result of the pandemic. As a result, the country is facing upheavals in its balance of payments, therefore the debt relief grant.
“The COVID-19 pandemic is having an adverse economic impact on Tanzania, creating exceptional fiscal and balance of payments needs,” said IMF Deputy Director Tao Zhang. “The IMF’s debt service relief under the Catastrophe Containment and Relief Trust will free up public resources to help address the pandemic.”
SEE ALSO: World Bank Projects a Sharp Decline in Tanzania’s Economic Growth
Further, Tanzania has begun negotiations creditors inline with the G-20 debt relief initiative. The negotiations aim at delaying Her debt repayments beginning in May to December 2020.
According to Reuters, Finance Minister Philip Mpango is in talks with the EU, eyeing $30M worth of support. The minister also said that the country could access $272M from the IMF as balance of payment support.
Besides, Tanzania will also receive $50M in concessional loans from the African Development Bank.
