The International Monetary Fund’s board approved a $1.05 billion extended credit facility for Tanzania and plans to disburse $151.7 million immediately.
The financing is the nation’s first IMF policy-reform funding program in a decade and comes after the Washington-based lender raised Tanzania’s risk of debt distress to moderate from low in September.
President Samia Suluhu Hassan told Bloomberg in March that her government was seeking IMF funding in a switch to more concessional loans to reduce the risk of debt distress for the $69.4 billion economy.
The 40-month package will assist with economic recovery and help address the repercussions of Russia’s invasion of Ukraine on the East African nation.