On March 3, the IMF Executive Board said it would consider augmenting Mozambique’s access to the Poverty Reduction and Growth Facility (PRGF), given the economic impact of the recent devastating floods. The text of News Brief No. 00/12, which follows, is also available on the IMF’s website (http://www.imf.org).
The IMF Executive Board noted that Mozambique had been hit over the past three weeks by its worst natural disaster on record. Directors expressed sympathy to Mozambique and its people for the heavy losses suffered in severe flooding.
Directors were willing to augment Mozambique’s access to resources under the PRGF (see IMF Survey, July 5, 1999, page 221), given current conditions in the nation. Based on estimates of the economic impact of the floods and of the donor response so far to it, the forthcoming staff report for the PRGF review could include a proposal for higher access. At the same time, Directors expressed a desire to consider the PRGF review on an accelerated schedule.
Directors also considered the possibility of adjusting the delivery schedule for already agreed IMF assistance under the Heavily Indebted Poor Countries (HIPC) Initiative in such a way that, if combined with maximum interim relief under the enhanced HIPC Initiative, there would be very little, or possibly no, cash debt service payable to the IMF for about one year.