Mozambique is set to receive $116 million from the European Union (EU) for budget support. This comes four years after the union froze lending to the nation, citing undisclosed debts.
As Bloomberg reports, the EU will avail the money in two equal tranches; in 2020 and 2021.
EU Ambassador Antonio Sanchez-Benedito Gaspar says the agreement had “different characteristics” to the direct budget support the EU used to provide and was focused specifically on helping with the socio-economic consequences of the COVID-19 pandemic.
The EU halted direct budget support to Mozambique in 2016, after the International Monetary Fund (IMF) and other donors froze direct assistance when the government admitted it guaranteed more than $2 billion in debts, more than half of which had been undisclosed.
Meanwhile, in July this year, Rwanda received an $11.4 million grant from the European Union (EU) for the country’s private sector development and creation of jobs. The grant is part of the $522.6 million package of support to the country until the end of 2020.
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