Announcement of Mozambique Receives United States (U.S.) Ten Million Dollars for Financial Sector Reforms on December 1, 2005

Mozambique Receives US$10 million for Financial Sector Reforms Contacts: In Washington Aby Toure (202) 473 8302 akonate@worldbank.org In Mozambique Rafael Saute (258-1) 482 300 rsaute@worldbank.org WASHINGTON, December 1, 2005 – The World Bank Board of Directors today approved an International Development Association (IDA) credit* of US$10.5 million to support reforms in the financial sector in Mozambique. The Financial Sector Technical Assistance Project is aimed at improving the soundness and efficiency of the Mozambican financial system so that it can fulfill its role of contributing to economic growth and poverty reduction. This will be achieved by strengthening the banking sector and enhancing the capacity of the Bank of Mozambique in terms of supervision, management of the banking system and the financial infrastructure, including the real time gross settlement system. The project will help advance financial accountability and transparency by introducing an international financial reporting system to commercial banks and corporate entities. The Financial Sector Technical Assistance Project is also expected to improve money and government bond market efficiency and depth, including the introduction of a central securities depository, and related assistance. It also seeks to strengthen public debt management capacity and will help reorganize and strengthen the Public Debt Department of the Ministry of Finance. The project represents one element of a larger, encompassing financial sector reform program which is jointly funded by several development partners. Parallel financing for related components comes from the African Development Bank (AfDB), Department for International Development (DFID), Sweden International Development Association (SIDA), The German Technical Cooperation (GTZ), and the German Fund for Reconstruction (KfW). This project is part of the Bank’s ongoing program in Mozambique. The Bank’s involvement builds on the commitments made in the Paris Declaration on Aid Effectiveness for greater donor coordination, which has enabled unprecedented cooperation among development partners in the sector. *The credit is provided on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent, a service charge of 0.75 percent over a 40 year period of maturity which includes a 10-year grace period. ### For more information on the World Bank’s work in sub-Saharan Africa visit: http://www.worldbank.org/afr For more information about World Bank’s activities in Mozambique visit: http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/MOZAMBIQUEEXTN/0,,menu PK:382138~pagePK:141159~piPK:141110~theSitePK:382131,00.html For more information about this project visit: http://web.worldbank.org/external/default/main?pagePK=64027221&piPK=64027220&theSitePK=382131&menuPK=382166&Projectid=P086169