Maputo, Mozambique — The European Commission will grant 65.7 million euros (about 60 million US dollars) to Mozambique to support of its state budget as part of the EC's pledge to assist the country in its poverty alleviation programme.

A European Union press release Wednesday said that the assistance was in the context of a joint donors' programme of macro-financial support, encompassing the European Union, its member states and other international partners.

"Of this sum, 25 million euros are to be disbursed immediately, while the remaining 40.7 million euros will be available between June and July this year," the release said.

The document added that this money is intended "to contribute to the continuity of the positive results attained in the country's economic and social areas, particularly actions contributing significantly to the reduction of poverty."

The release also announced that the European Investment Bank is writing off 19.8 million euros of Mozambique's debt, in the context of the Highly Indebted Poor Countries (HIPC) debt relief initiative.

"With this debt forgiveness, the Mozambican government will be able to make additional financial resources available for the reduction of poverty," it said.