IMF hails Tanzanian cooperation in implementing economic reforms under ECF programs

DODOMA: THE International Monetary Fund (IMF) has commended Tanzania for its good cooperation with the organization in the implementation and management of economic reforms under the Extended Credit Facility-(ECF) programs, which involve access to affordable credit to strengthen the country’s economy through the productive and social services sectors and the Resilience Sustainability Facility (RSF) to address the impacts of climate change.

The commendations were given by the Leader of the International Monetary Fund (IMF) Team of Experts, Nicolas Blancher, when he led a team of experts from the organization that arrived to conduct a comprehensive assessment of various programs it finances in the country, in a meeting with the Tanzanian Delegation led by the Permanent Secretary, Ministry of Finance, Dr. Natu El-maamry Mwamba, held in Dodoma.

Blancher said that the IMF’s commitment is to continue supporting Tanzania’s efforts in completing existing programs (ECF and RSF) and planning the next steps in those programs.

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“One of the main objectives of this two-week visit is to discuss fundamental economic policy issues, particularly how Tanzania is addressing the challenges of the ongoing crisis in the Middle East,” said Blancher.

He also added that Tanzania should continue to further strengthen the financial sector, increase social spending in the health and education sectors, to stimulate private sector growth and employment, in line with the implementation of the National Development Vision 2050.

For his part, the Permanent Secretary in the Ministry of Finance, who is also the Chief Payer of the Government, Dr Natu El-maamry Mwamba thanked the International Monetary Fund-IMF for its continued cooperation in supporting the implementation of economic reforms in the country.

Dr Mwamba stressed the Government’s commitment to continue to work closely with the IMF to achieve the goals of inclusive growth and sustainable development and the Government hopes to reach an agreement that will enable timely access to financial resources and strengthen the National economy.

“In the assessment of the implementation of the ECF program, two out of eight expected benchmarks have been completed, including the development of an emergency liquidity assistance (ELA) system and improvements to the collateral system for financial institutions, and five benchmarks are ongoing, including improvements to the public investment planning law, improvements to VAT refund systems, and a collateral bill aimed at expanding the scope of assets that can be used as collateral” said Dr Mwamba.

He added that, in terms of the RSF Program, five out of eight steps have been completed, including long-term plans for the energy sector that take climate change into account, as well as the establishment of climate impact data collection systems in the financial sector.