ADF, Mozambique sign Economic reform and Poverty Reduction Support Loan Program

10/12/2004
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The AfDB Group Vice President for North, East and South Operations, Mr. Theodore Nkodo, and the Ambassador for Mozambique in Portugal, S.E.M Gregorio Leao Jose, signed a loan agreement in Tunis on Friday, December 10, to finance the second Program of Economic Reform and Good Governance for Poverty Reduction in Mozambique amounting to US$ 50 million (30 million Units of Account).

Recalling the Fund’s interventions in various sectors such as agriculture, transport, support of projects for Small and Medium Enterprises or urban water supply and sanitation, VP Nkodo emphasized the fact that this loan is the first budget support operation that the ADF is extending to Mozambique. The objective of this new operation is to alleviate the government’s budget constraints, to deepen the macroeconomic reforms, to promote good governance and to enhance the capacity of the public sector.

Mr. Nkodo commended the progress that Mozambique has made in the implementation of its programme of economic, political and social reforms, which is anchored on the poverty reduction strategy of the country. Ambassador Leao Jose underlined Mozambique’s political achievement by recalling this year 3rd Presidential election, illustration of the good governance in the country.

The Bank Group operations in Mozambique started in 1977. With this new agreement, the group would have committed a total of US$ 1.2 billion (UA 780 million) in 84 operations in the country.