Mozambique's new PSI

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Page 169

The IMF's Executive Board approved on June 18 a Policy Support Instrument (PSI) for Mozambique under the IMF's PSI framework, which is intended to support the nation's economic reform efforts. The PSI for Mozambique is aimed at maintaining macroeconomic stability as foreign aid is scaled up, promoting structural reforms, and implementing the broader policy agenda as envisaged in the Mozambican authorities' national poverty reduction strategy.

Approval of Mozambique's PSI signifies IMF endorsement of the policies outlined in the program. The IMF's framework for PSIs is designed for low-income countries that may not need, or want, IMF financial assistance but still seek IMF advice, monitoring, and endorsement of their policies. PSIs are voluntary and demand driven. PSI-supported programs are based...