Agencia de Informacao de Mocambique (Maputo)

Mozambique: Credit Crunch Not Yet Cutting Aid

29 April 2009


Maputo — The recession in Europe and America has not yet led to any reduction in the flow of aid to Mozambique from the 19 donors and funding agencies that provide direct budget support, Finance Minister Manuel Chang told reporters on Wednesday.

He was speaking at the end of the annual joint review of performance between the government and the group of 19, often known as "Programme Aid Partners" (G-19 or PAPs).

Chang said that all the money pledged by the PAPs in 2008 was disbursed, and that, in the first four months of 2009, the disbursements have also been all on schedule. Between 2004 and 2008, the government received 1.689 billion dollars in direct budget support. The pledges from the 19 partners for 2009 amount to 455 million dollars.

But what happens after 2009?, AIM asked Irish ambassador Frank Sheridan, the outgoing chairperson of the group.

"Some of the economies of the G-19 are facing serious crises with revenue, and for others their currencies have devalued", he replied, but there was still no clear picture as to what the future held in terms of support for Mozambique.

"We hope to know more about this next month", Sheridan added. "The process of collecting information on new commitments begins now".

Only with the conclusion of the Joint Review was it possible for the donors to promise continued budget support. How much that will amount to in 2010 will become clearer in the following weeks.

Sheridan said the definitive answer will come on 28 May, when the 19 partners all deliver their promises of support for 2010 to the government.

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