World Bank clears $700m loan for Mozambique
Thématique :
mozambique
The World Bank has approved a $700-million loan over three years to help Mozambique implement development projects, a top official at the poverty-fighting institution said on Friday.
The World Bank's Mozambique country programme manager, Susan Hume, said more than $200-million a year would be loaned through its concessionary arm, the International Development Association (IDA). It will be repaid over 40 years, with a 10-year grace period.
"Generally we are happy to approve the credit because obviously we don't lend this kind of money to a country which we think is not performing well," she told Reuters.
Mozambique's economic and social performance was seen as above average for the region, Hume said.
The southern African nation was one of the poorest in the world at the end of a 17-year civil war in 1992 but has enjoyed rapid growth over the past decade.
The economy expanded by 6,7 percent in the first half of 2008 and the government says it is on track to reach an 8 percent growth target.
Hume expressed concern over the government's approach to fighting corruption and HIV/AIDS, which she said was a stumbling block to economic development.
"The bank, as well as the donors, is also concerned with the governance agenda, particularly the judiciary and the legal reforms. They need to allocate resources and they need the capacity to respond to corruption cases," she added.
Mozambique's government said it will also receive $485,2-million from 19 regular international partners to support its budget for 2009.
"They (donors) have pledged a total of $485,2-million for our 2009 budget, (and) these figures represent a rise of $91 million as compared to last year," Aiuba Cuereneia, Mozambique's Planning and Development Minister, told Reuters.
Budget spending is expected to increase by 5 percent next year from $3,8-billion in 2008 to help boost agricultural production and infrastructure development, with about half of the financing expected to come from donors and loans.
