An IMF statement explained that the 40-month financing plan will support Tanzania’s economic recovery efforts, as well as help address some of the economic problems the country has faced since the start of Russia’s war on the country. ‘Ukraine.
“The fallout from the war in Ukraine is hampering the gradual recovery of the Tanzanian economy from the COVID-19 pandemic, exacerbating the country’s development and reform challenges to unlock its economic potential. The ECF arrangement is centered on supporting economic recovery from the scarring effects of COVID -19 and dealing with the fallout from the war in Ukraine, preserving macroeconomic stability, and advancing the structural reform agenda towards sustainable and inclusive growth. priorities of the government’s five-year development plan. Financial support from the IMF is also expected to help stimulate private sector investment and catalyze financial support from development partners,” says the IMF.
Meanwhile, IMF directors also commended Tanzania’s commitment to implementing reforms, as well as the government’s economic response to the pandemic as well as the policies that have already been put in place to counter the economic fallout from the ongoing war in Ukraine. .
According to IMF Deputy Managing Director and Acting President Bo Li, it was in consideration of these achievements that the directors accepted Tanzania’s loan request.
Li concluded his remarks by noting that IMF directors welcomed Tanzania’s plan to rebalance spending towards social spending, as well as plans to tighten monetary policy.