Budget 2020: Tanzania in talks with several financial institutions
Dar es Salaam. The government is in talks with various International Financial Institutions seeking for funds to mitigate challenges surrounding the Covid-19 pandemic effects.
This was said today June 11 by the Minister for Finance and Economic Planning Philip Mpango when tabling the 2020/21 budget in Parliament where he said the government has received a loan relief through the Catastrophe Containment Relief Trust (CCRT) for $14.3 million which was approved by the International Monetary Fund Board on June 10, this year. The amount could increase to $25.7 million.
“On behalf of the government, I would like to express my sincere thanks to them for this important step for us in dealing with the impact of Covid-19,” he said.
He said other institutions that the government is in talks with include the World Bank through the Pandemic Emergency Financing Facility (PEF) amounting to $3.98 million; Economic Development Cooperation Fund (ECDF) through the Korea Exim Bank of $501,169; BADEA $1.7 million; budget support from 42 European Union through EU window Covid-19 Response Package 27 million euros;
Others include the IMF to secure a loan under the Rapid Credit Facility (RCF) scheme whereby the government can borrow up to 198.9 million Special Drawing Rights (SDR) equivalent to approximately $272 million for improving balance of payments.
Further he noted the African Development Bank has promised to provide a $50 million concessional loan which will be planned according to priorities.
He said the economic analysis conducted over the period of January to April 2020 shows that unlike most countries whose economies have suffered a setback, the impact of Covid-19 to the Tanzania economy is minimal.
“This is largely due to President John Magufuli decision that Tanzanians continue to work hard while they adhere to the Covid-19 health expert’s advice,” he said.
According to the assessment indicates that there are areas where the effects of Covid-19 were marginally or not at all experienced including the Gross domestic revenue which increased by 8.2 percent for the period of January to April 2020 to a tune of Sh6.8 trillion compared to Sh6.3 trillion during the same period.
