According to a statement issued in Washington DC in the United States, the agency’s Board of Directors has reached a decision that the money that Tanzania had to pay would now come from the CCRT disaster relief fund and put down debt relief. The IMF says the debt was due to be repaid between now and October 13, 2020. They added that additional support would be provided between October 14, 2020, to April 13, 2022, based on the availability of funds.
This support has come at a time when COVID-19 has weakened the prospects for growth in the Tanzanian economy, which is now experiencing a sharp decline in tourism, budgetary pressure and a fall in GDP growth, from 6 percent to 5.6 in the 2020/2021 financial year
Recently the Tanzania Debt and Development Network (TCDD) through the media urged the IMF, the World Bank (WB) and the world’s lender to take immediate action and to relieve Tanzanian debt from stopping all its current debt and aid other conditional loans to direct its full strength and ability to fight Corona disease and to curb its economy from falling into a fast-paced chain.