publication of an anti-corruption law (prior action). Fiscal safeguards are also being strengthened with the hiring of an international, independent company to promptly start the audit of the pandemic-related expenditures (prior action), and also conduct an audit of the Bata emergency and rehabilitation-related expenditures (prior action). Finally, the authorities have opened two escrow accounts at the BEAC (prior action)—one for COVID and one for Bata emergency spending—to be replenished by the existing BEAC IMF account where the RFIpurchase will be made, with drawings
previous year through the end of the existing arrangement does not exceed 145 percent of quota.
The RFIpurchase is within the NAAL when access to GRA resources during any 12-month period from date T+1 of the previous year through date T-1 day of the next year does not exceed 145 percent of quota.
Application of the Proposed Temporary Access Limit Increase :
4 . The proposed temporary NAAL would apply to i) requests for new arrangements or RFI approved by the Board between the date of Board approval of the increase of the annual access limits and April 6, 2021
The COVID-19 pandemic has negatively impacted Tanzania’s macroeconomic outlook. The Tanzanian authorities are implementing a comprehensive emergency pandemic response plan to help mitigate the significant socioeconomic and health effects of the crisis, resulting in an ongoing urgent balance of payments need.
The COVID-19 pandemic has caused a uniquely severe synchronized shock across the global economy, in turn leading numerous member countries to request substantial financial assistance from the Fund. The Executive Board responded to members’ needs by increasing the access limits under the Fund’s emergency financing instruments by 50 percent of quota for a period of 6 months (until October 5, 2020), subject to a possible extension by the Executive Board.
Since the approval of the first RFI request on April 9, 2020 (IMF Country Report No 20/109), weaker external demand and a more pronounced impact of containment measures have further deteriorated growth prospects and worsened external and fiscal positions. The authorities are requesting a purchase under the Rapid Financing Instrument (RFI) of 50 percent of quota (SDR 108 million) to be used as budget support to help address urgent balance of payment (BoP) needs and mitigate the risk of disorderly fiscal or BoP adjustment. This additional request will bring the total purchases under the RFI to 100 percent of quota in 2020.
International Monetary Fund. Middle East and Central Asia Dept.
1 19.4 2/
Source: Finance Department
1/ As of end-December, unless otherwise stated.
2/ Figures in italics include prospective transactions under the proposed RFIpurchase. As of the end of fiscal year starting on July 1 and ending on June 30.
The COVID-19 pandemic is having a severe impact on Eswatini’s economy at a time when the country is already facing deep economic challenges, and the government has begun fiscal consolidation efforts. A national lockdown to contain the spread of the virus, disruptions in supply chains, and lower external demand for key exports are curtailing economic activity. While the authorities’ policy response has been timely and proactive, the economic shock and containment policies are triggering a severe recession with significant social costs, and have created urgent balance of payments needs. The pandemic is unfolding in a context of high prevalence of HIV/AIDS and a stretched health care system, which increase Eswatini’s vulnerability.