Mozambique: IMF Dashes Chapo’s Hopes and Sets the Course for Hard Times

Chapo’s hopes for IMF approval were dashed today (17 February) by the IMF Executive Board, with no discussion of a new loan or programme. President Daniel Chapo has publicly put his hope on a new loan and programme triggering investment and aid.

The IMF mission 12-21 November took a hard line, which was supported today by the Executive Board. The main IMF demands stand – substantial devaluation plus major fiscal and wage reforms. The Board said “A clear communication of reform objectives would be…