World Bank Headquarters (Washington DC, USA)
The World Bank may lend Tanzania as much as $300 million to help fund an economic stimulus package being prepared by the East African nation’s central bank, country director John McIntire said.
The Washington-based multilateral lender has held talks with the government about the possible loan, McIntire said today in an interview in the commercial capital of Dar es Salaam.
“We have discussed between 1 percent and 1.5 percent of GDP, between $200 and $300 million
depending on their needs,” McIntire said.
The economy of Tanzania, a country of 41 million people, is expected to grow about 5 percent this year, compared with 7.5 percent last year. The nation is Africa’s third-largest gold producer, after South Africa and Ghana, and derives about 40 percent of its gross domestic product from agriculture.
Tanzania last month asked to borrow money from the International Monetary Fund as the global financial crisis hits its export-driven economy and slows tourism. A decision by the IMF’s board is expected later this month.
“Our discussion with Tanzania was before they announced drawing on the Fund program, which is going to be about $325 million,” McIntire said. “So, if requested, our support will be calibrated in light of the Fund program and other sources.”
The money would tap into already pledged funds from the International Developmet Association, the World Bank’s soft- loan arm, which total $2.1 billion to Tanzania over the three years to 2011, said McIntire.
Tanzania is grappling with falling domestic revenue, declining foreign investment and dwindling remittances from Tanzanians living abroad, Finance Minister Mustafa Mkulo said on April 25.
In response, a team led by Central Bank Governor Benno Ndulu is developing an economic “rescue plan” including measures to stem job losses, increase food production, boost the financial sector and diversify the economy, he said.
Soft loans are usually offered at below-market rates and with other preferential conditions.
Msomaji
Dar es salaam
The Washington-based multilateral lender has held talks with the government about the possible loan, McIntire said today in an interview in the commercial capital of Dar es Salaam.
“We have discussed between 1 percent and 1.5 percent of GDP, between $200 and $300 million
depending on their needs,” McIntire said.
The economy of Tanzania, a country of 41 million people, is expected to grow about 5 percent this year, compared with 7.5 percent last year. The nation is Africa’s third-largest gold producer, after South Africa and Ghana, and derives about 40 percent of its gross domestic product from agriculture.
Tanzania last month asked to borrow money from the International Monetary Fund as the global financial crisis hits its export-driven economy and slows tourism. A decision by the IMF’s board is expected later this month.
“Our discussion with Tanzania was before they announced drawing on the Fund program, which is going to be about $325 million,” McIntire said. “So, if requested, our support will be calibrated in light of the Fund program and other sources.”
The money would tap into already pledged funds from the International Developmet Association, the World Bank’s soft- loan arm, which total $2.1 billion to Tanzania over the three years to 2011, said McIntire.
Tanzania is grappling with falling domestic revenue, declining foreign investment and dwindling remittances from Tanzanians living abroad, Finance Minister Mustafa Mkulo said on April 25.
In response, a team led by Central Bank Governor Benno Ndulu is developing an economic “rescue plan” including measures to stem job losses, increase food production, boost the financial sector and diversify the economy, he said.
Soft loans are usually offered at below-market rates and with other preferential conditions.
Msomaji
Dar es salaam
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