Press Release No. 05/166

Mr. Takatoshi Kato, Deputy Managing Director of the International Monetary Fund (IMF), will travel to Maputo, Mozambique (July 24-26) and Lusaka, Zambia (July 27-29). The main purpose of the visit is to meet with country leaders on the challenges they face and how best the Fund can support their efforts to bring about lasting economic improvement and poverty reduction.

This visit comes at a time of intensified attention and support for the continent from the international community in support of the Millennium Development Goals and also highlights the central importance of Africa for the Fund.

In Mozambique, Mr. Kato will meet with the President and his economic team, as well as with representatives of the donor community and civil society. In his meetings, Mr. Kato will seek views on how the country can build upon its impressive performance and, along with increased external assistance, sustain the high rates of growth and make possible lasting reductions in poverty.

In Zambia, Mr. Kato will listen to the views of the leadership as well as representatives of the business and donor community, parliamentarians, and civil society on the successes, as well as the difficulties, in securing high quality growth and poverty reduction following significant debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative¹.

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¹ Mozambique reached the completion point under the enhanced HIPC Initiative in September 2001, obtaining US$306 million in debt relief in net present value (NVP) terms. This was in addition to debt relief of US$1.72 billion provided under the original HIPC Initiative. The IMF's share of this debt relief amounts to about US$143 million in NPV terms.

Zambia reached the completion point under the enhanced HIPC Initiative in April 2005, obtaining US$2.5 billion in debt relief in net present value terms. The IMF is providing debt relief of SDR 468.8 million (about US$602 million) in NPV terms on payments falling due to the IMF during 2001-08.