## 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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**Canonical URL:** [Press Release: IMF to Extend 100 Percent Debt Relief to Tanzania Under the Multilateral Debt Relief Initiative](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr05304)

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## Bibliographic details
- Published: December 23, 2005

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### 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.*

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## References

- [United Republic of Tanzania and the IMF](http://www.imf.org/external/country/TZA/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No 05/286](https://www.imf.org/external/np/sec/pr/2005/pr05286.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr05304_