This archive report was first published on 12 June 2020.
On June 10, 2020, the International Monetary Fund (IMF) approved a debt relief worth $14.3 million to support Tanzania's emergency needs. This relief will be granted over the next four months, freeing up the country's resources for essential purposes.
According to the IMF, Tanzania is facing significant economic challenges due to the pandemic, including weakened revenues from tourism and a projected GDP deceleration. As a result, the country is experiencing difficulties in its balance of payments, necessitating the debt relief grant.
IMF Deputy Director Tao Zhang stated, "The COVID-19 pandemic is having an adverse economic impact on Tanzania, creating exceptional fiscal and balance of payments needs. The IMF's debt service relief under the Catastrophe Containment and Relief Trust will free up public resources to help address the pandemic."
Tanzania has also initiated negotiations with creditors to delay its debt repayments, in line with the G-20 debt relief initiative. The country is seeking to delay its repayments from May to December 2020.
Finance Minister Philip Mpango is in talks with the European Union, aiming to secure $30 million in support. Additionally, Tanzania may access $272 million from the IMF as balance of payment support, and the African Development Bank has pledged $50 million in concessional loans.
