Press Release: IMF to Extend 100 Percent Debt Relief to Tanzania Under the Multilateral Debt Relief Initiative
IMF News, December 23, 2005
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- Published: December 23, 2005
Key decision and amounts
- The IMF Executive Board has approved debt relief for Tanzania under the Multilateral Debt Relief Initiative (see Press Release No 05/286).
- The IMF will provide 100 percent debt relief on all outstanding debt incurred by Tanzania to the IMF before January 1, 2005 that remains outstanding.
- This amounts to approximately US$336 million, or US$297 million excluding remaining assistance under the Heavily Indebted Poor Countries Initiative.
- The debt relief should become available in early January as soon as the remaining consents of the contributors to the PRGF Trust Subsidy Account have been received.
Rationale and qualifying performance
- Tanzania qualified for IMF debt relief because of:
- overall satisfactory recent macroeconomic performance,
- progress in poverty reduction,
- improvements in public expenditure management.
- Specific performance highlights cited:
- robust economic expansion with low rates of inflation for more than five years,
- the government’s record of implementing its Poverty Reduction Strategy Plans, including the National Strategy for Growth and Reduction of Poverty (MKUKUTA),
- improved public expenditure management systems.
- The IMF statement emphasizes that these performance areas provide assurance that resources made available under the Multilateral Debt Relief Initiative will be used effectively.
Purpose and expected use of resources
- The international community has made these additional resources available to help Tanzania make progress toward its Millennium Development Goals (MDGs).
- The IMF looks forward to working with Tanzania to help it develop a strong and stable economy and to make sustained progress toward the MDGs.
Timing and procedural note
- Statement issued by Mrs. Lelde Schmitz, the IMF Senior Resident Representative in Tanzania, on December 22 in Dar es Salaam.
- Press Release published December 23, 2005 (Press Release No. 05/304).
- Availability of relief contingent on receiving remaining consents of contributors to the PRGF Trust Subsidy Account.
International Monetary Fund — Press Release No. 05/304, December 23, 2005.