Hapa chini, Serikali ya jiwe ilikuwa ikiomba hela za mkopo wa kovid wakati walikataa hakuna kovid Tanzani, May 2020, na vile vile kudanganya wajinga kuwa Tanzania inatumia hela za ndani.....
sijui tulipotea wapi, Na sasa CCM, japokuwa siipendi, lakini wamejifunza, na haitatokea tena kuikabidhi nchi kwa mshamba na mpuuzi kama yule........
Appendix I. Letter of Intent
THE UNITED REPUBLIC OF TANZANIA
MINISTRY OF FINANCE AND PLANNING
Telephone: 0262963110
Fax: 0262963109
Email Address:mi
nister@hazina.qo.tz
Web site:
www.mof.go.tz
In reply please quote:
Ref. No: CMB.445/624/01
Treasury Square Bid.
18 Jakaya Kikwete Road
P.O. Box 2802
40468 DODOMA
TANZANIA.
27th May, 2020
Ms. Kristalina Georgieva,
Managing Director, International Monetary Fund
700 19th St.
NW, Washington DC 20431, USA
Dear Ms. Georgieva,
RE: LETTER OF INTENT- CCRT REQUEST
The Covid-19 pandemic is having a negative impact on our economy. We are
experiencing a deceleration in economic activity and exceptional balance of payments
needs arising from the pandemic. The emerging balance of payments needs, that will
be mostly felt in the fiscal year starting in July, is projected to be on the order of
US$696 Million (1 percent of GDP and 12.6 percent of our end-March official external
reserves).
To date we have (509) confirmed cases and (21) deaths and as in
other countries, our ability to track the outbreak has been affected by
insufficient capacity to test and deaths at homes, sometimes away from
medical facilities. Our response to the crisis is as follows:
(i) Constrained fiscal revenues and higher spending needs have led to significant
budget pressures. On health spending, we already spent an additional
shilling 19.5 billion in FY 2019 / 20 to mitigate the impact of COVID-19;
(ii) In the FY20/ 21 budget, we are seeking to create budgetary space for these and
other outlays to support economic activity and protect the poor by suspending our
curtailing non-essential outlays. To that extent we have increased budgetary
allocation for priority social sectors by 8.8 percent from the likely outturn of
shillings 5,534.1 billion in 2019/2020 to shillings 6,022.1 billion 2020/ 21.
UNITED REPUBLIC OF TANZANIA
INTERNATIONAL MONETARY FUND 9
The increase will serve to purchase medical equipment and supplies, improve
medical facilities, and hire additional medical personnel;
(iii) The Government will ensure that COVID-19 intervention are fully financed. And we
are requesting financial support from the IMF and donors to meet the emerging
financing gap and remain committed to ensure fiscal and debt sustainability;
(iv) To ensure the appropriate use of funds spent on fighting COVID-19, the office of
the Auditor General in consultation with the relevant partners providing funding
will undertake and publish an ex-post audit of COVID-19 related spending; and
(v) Lastly, in order to provide liquidity and support economic activity we reduced the
discount rate and reserve requirements and will support banks' loan restructuring
operations if justified on a case-by case basis. We are monitoring closely our
balance of payments position and will ensure enough flexibility in the exchange
rate to help absorb the shock and contain the financing gap.
Against this backdrop we hereby request grant assistance under the Catastrophe
Containment window of the Catastrophe Containment and Relief Trust (CCRT) to cover our
debt service to the IMF falling due in the 24-month period from April 14, 2020 to
April 13, 2022 or as much as available from resources. This debt relief will free up some
budgetary resources to address public health needs and help contain the balance of
payments needs resulting from the pandemic.
We are working closely with IMF staff to maintain macroeconomic stability and we are
in discussions to obtain additional financial support by accessing emergency financing
facilities. We are confident that strong IMF support to our country will help catalyze wider
support from other development partners. Lastly, we authorize the IMF to publish this letter
and Board documents related to this request for debt relief from the CCRT.
As we thank you for your continued support and cooperation, please accept
the assurances of our highest consideration.
/s/ /s/
Dr. Philip I. Mpango (MP) Prof. Florens Luoga
MINISTER OF FINANCE AND PLANNING GOVERNOR, BANK OF TANZANIA