AfDB and GoM sign Poverty Reduction Support Loan Agreement for Mozambique
MZFO’s Res Rep Alice Hamer, and Mozambique’s Minister of Planning and Development, Minister Aiuba Cuereneia, the country’s Bank Group Governor, signed on 17 November, 2008, the second Poverty Reduction Support Loan (PRSL II), amounting to 60 million UA, to finance the Government’s second Absolute Poverty Reduction Support Program (PARPA II). This budget support loan, to be disbursed in equal UA 20 million tranches over three fiscal years, ending December 2010, is aimed at ensuring macro-economic stability, improving governance through public sector reforms and decentralization, and the establishment of a favourable environment for economic and private sector development.
The success of the first PRSL, that led to the unanimous approval of this second program, was largely a result of the Government’s commitment and ownership. As Alice Hamer pointed out in her speech, "the Bank has the confidence that Government will perform even better during the implementation of the PRSL II". For his part, the Minister of Planning and Development recognised that "while many challenges remain, Government leadership and cooperation partners’ support, particularly that from the AfDB, will enable us to continue improving people’s lives and establish a solid platform to achieve the Millennium Development Goals."