IMF approves USD 118 mLn rapid credit for Mozambique in wake of Cyclone Idai

WASHINGTON, April 20 (KUNA) -- The Executive Board of the International Monetary Fund (IMF) approved Friday emergency financial assistance to Mozambique under the Rapid Credit facility (RCF) that would enable the disbursement of about USD 118.2 million to address the country's needs after Cyclone Idai.
In a statement, the IMF said "the financial assistance is intended to address large budgetary and external financing gaps arising from reconstruction needs after Cyclone Idai, which caused significant loss of life and infrastructure damage." The Fund's Deputy Managing Director and Acting Chair Tao Zhang said in a statement that Mozambique "suffered significant loss of life and substantial damage to physical infrastructure and productive capacity as result of the recent Tropical Cyclone Idai." He stressed that "emergency assistance and reconstruction costs are estimated to be enormous, making this storm the worst and costliest natural disaster to ever strike the country." "Disbursement under the IMF's Rapid Credit Facility will help address the country's immediate financing needs and play a catalytic role in securing grants from donors and the international community," he noted. (end) si.mb