## Press Release: IMF Executive Board Completes Sixth Review Under the Policy Support Instrument, First Review Under the Exogenous Shock Facility for Tanzania

_IMF News, November 24, 2009_

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**Canonical URL:** [Press Release: IMF Executive Board Completes Sixth Review Under the Policy Support Instrument, First Review Under the Exogenous Shock Facility for Tanzania](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr09428)

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## Bibliographic details
- Published: November 24, 2009

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### Review completion and financial disbursement
- The Executive Board completed the sixth review under a three-year Policy Support Instrument (PSI) for the United Republic of Tanzania and the first review under the Exogenous Shock Facility (ESF).
- The completion of the ESF review makes available a disbursement of SDR 39.78 million (US$63.40 million).
- The Executive Board’s decision was taken on a lapse of time basis.
  - The Executive Board takes decisions under its lapse of time procedures when it is agreed by the Board that a proposal can be considered without convening formal discussions.

### Economic context, performance, and outlook
- After several years of high growth and strong macroeconomic performance, the Tanzanian economy is affected by the global economic crisis, compounding challenges in food security, poverty alleviation, and building infrastructure.
- Growth projections and recent performance:
  - Growth is expected to slow to a projected 5 percent in 2009, from 7.1 percent on average in the last three years.
- Assessment of program performance:
  - All assessment/performance criteria for end-June were met for the PSI/ESF review.
  - There has been good progress in implementing structural reforms.
- Policy stance and near-term risks:
  - Authorities’ forward-looking policy framework incorporates additional fiscal and monetary stimulus to support growth.
  - There are early signs of a nascent recovery.
  - Fiscal revenues remain weak.
  - It will be important to preserve control over expenditures, particularly given the need to respond to the drought in the region and address infrastructure weaknesses.

### Program details and institutional frameworks
- ESF and PSI arrangements:
  - The Executive Board approved a one-year arrangement under the high access component of the ESF in the amount of SDR 218.79 million on May 29, 2009.
  - The PSI was originally approved on February 16, 2007, and has been extended through end-May 2010.
- Purpose and design:
  - The IMF’s framework for PSIs is designed for low-income countries that may not need IMF financial assistance, but still seek close cooperation with the IMF in preparation and endorsement of their policy frameworks.
  - PSI-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners.
  - The ESF is designed to provide policy support and financial assistance to low-income countries facing exogenous but temporary shocks.

### Country facts and institutional notes
- Tanzania became a member of the IMF on September 10, 1962.
- Tanzania has a Fund quota of SDR 198.90 million.

*Source: Press Release No. 09/428 (November 24, 2009), International Monetary Fund.*

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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. 09/190](https://www.imf.org/external/np/sec/pr/2009/pr09190.htm)
- [Press Release No. 07/26](https://www.imf.org/external/np/sec/pr/2007/pr0726.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/pr09428_