Mozambique: Possible post-Cyclone emergency IMF assistance

The IMF published a statement yesterday following its recent 2019 Article IV staff mission to Maputo. The scheduled mission comes in the wake of Cyclone Idai, which has caused widespread devastation and loss of life across Mozambique, Zimbabwe and Malawi, with c700 people dead and 1.85mn affected, according to the UN. The IMF noted that, although it was too early to assess the macroeconomic impact, reconstruction costs will be very significant. The statement noted that the Board discussion of the Article IV is tentatively scheduled for end-May.

The IMF’s statement also noted that it will consider the authorities’ request for emergency financial assistance under its rapid credit facility (RCF). The RCF is not a traditional IMF financial programme, such as an SBA, EFF or ECF, which still seem some way off in our view (and have possibly become less likely as the window for approval before the country's general election narrows)...


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