Budget 2020: Tanzania in talks with several financial institutions

Thursday June 11 2020

 

By Rosemary Mirondo @mwaikama rmirondo@tz.nationmedia.com

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.

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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.