Press Release No. 04/153

Press Release: IMF Executive Board Approves PRGF for the Republic of Mozambique

July 20, 2004

The Executive Board of the International Monetary Fund (IMF) has given its final approval of a three-year arrangement under the Poverty Reduction and Growth Facility (PRGF) for Mozambique in an amount equivalent to SDR 11.36 million (about US$16.6 million) to support the government's economic program into 2006.

The final decision of the IMF Executive Board was contingent on a decision by the Executive Board of the World Bank on July 6, 2004. On that date, the Fund decided that the World Bank had concluded that Mozambique's Poverty Reduction and Strategy Paper (PRSP) provides a sound basis for continued access to financial concessional assistance by the World Bank.

The final approval of the arrangement made available on July 9, 2004 the first disbursement of SDR 1.62 million (about US$2.4 million). (See Press Release No. 04/120)