United Republic of Tanzania: Request for Debt Relief under the Catastrophe Containment and Relief Trust-Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania
IMF Staff Country Reports, June 12, 2020
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- United Republic of Tanzania: Request for Debt Relief under the Catastrophe Containment and Relief Trust-Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania
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Bibliographic details
- Published: June 12, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513547442.002
Summary
- Paper discusses the United Republic of Tanzania’s Request for Debt Relief Under the Catastrophe Containment and Relief Trust.
- IMF debt service relief is intended to free up resources for public sector health needs and other emergency spending, and to mitigate the balance of payments shock resulting from the pandemic.
- Authorities commit to using additional resources for intended purposes and in a transparent manner, including through ex-post audits of corona virus-related spending.
- Emphasis on close cooperation with multilateral organizations and donors, and safeguarding adequate budget allocations for health and other priority spending, notably in the FY2020/21 budget.
Key findings and impacts
- IMF debt service relief will:
- Free up resources for public sector health needs.
- Free up resources for other emergency spending.
- Mitigate the balance of payments shock resulting from the pandemic.
- Remaining risks require:
- Safeguarding appropriate funding for health and other priority social spending in the FY2020/21 budget.
- Close cooperation with the World Health Organization, multilateral agencies, and donors.
- Operational and structural focus areas include addressing:
- Arrears on value-added tax refunds and government expenditures.
- Enhancing human capital and the business environment.
- Improving the affordability of bank credit.
Policy recommendations and commitments
- Ensure close cooperation with multilateral organizations and donors to manage pandemic-related risks.
- Ensure enough budget allocations on health and other priority spending, explicitly safeguarding funding in the FY2020/21 budget.
- Use additional resources transparently for intended pandemic-related purposes, including ex-post audits of coronavirus-related spending.
- Coordinate closely with the World Health Organization, multilateral agencies, and donors to address residual risks.
Operational priorities and focus areas
- Fiscal and public finance:
- Prioritize health spending and other emergency public sector needs.
- Address arrears on value-added tax refunds and government expenditures to restore fiscal credibility and cash flow.
- Structural reforms:
- Enhance human capital outcomes.
- Improve the business environment.
- Improve the affordability of bank credit to support recovery and private sector activity.
- External sector:
- Mitigate balance of payments shock through relief and coordinated external assistance.
Content in this bundle
- 1tzaea2020001