Announcement of Consultative Group for Mozambique on July 10, 1987

_6 .6 . d \ t? (iue d ' len a 75116 PAR !S. Fra n ce- Tt·lepho n e 4 72 3 54 21 ! ./ PRESS REL EASE For Im~ed1~!e Re ,e3se Paris, July 10 -- A f ir st eet ng of the Consultati ve Group for Moza~b,q ue was eld 1n Paris on July 9 and 10 , 1987 under t he cha1rman sh p of Mr . ~ve'l Sancstrori, Direct.or , Sou her n Af rica epar .ie t, t he 'ii.'or 1d Bank . Tre ~oza b1can d~le;at 10n was led by t ~e Pr 1~e ~1n1st ~r , Hi s Excc,1e nc y r. ~,a.·10 da Grar,c. Mc u1 ~c • . and inc uded t. r, e tv"1:11st~:r Jf Finance His Exce lle ncy Dr. Abd ul ag10 Osman, the Vice M1n1 ster of Trade , H1s Excelle ncy Dr . Daniel Ga bne1 Tembe, the Go vernor of t he Bank of Mo za~b,que , H1s Excelle ncy Or . Eneas da Conce,~ao Com1che and other senior Government officials. mee t ing reviewed t he current economic s1tuat1on rn ozarnb que and Economic Rehabilltat,on Program. Part1c1pants were < t~e Government for shown ,n  if the would also enhance Mozambique's But part1c1 pant s stressed that and ref ina ncrng. Cred1:or countries p rt1c1pa~ing in t . e Paris Club ad al so agree d to provide comprehe sHe relief ori off1c1al and o ff1 c 1a1l y guara nteed 1can s . Aid i,1d1cat10ns pr,.,.1 ::le j by .er.t:e r s at :n e :-ieet1rig s uggest ed that total E:xterria i c :n u l '1 ~· ~ ... s r1ere l:' elJ to t:,t:>.i at:Jt _ j;J .... ~ ,,.. ,1 ~ .,., - V I bal ance f payme'lts and 1mpcrt SJpport . t 1e1r 11 e1t10n t o ncr e~ se furt .er e1r assistance to Mczamb1que 1n 1983 t hrough ad dit i onal aid d1 sburser,ient s . So~e were als o cons ideri ng special debt relief me as• res , inch.d.n g con ers1on of loans to grants and r csc hec,,l 1n] outs t anding credits at ver y co nces s 1on a i nterest rates.  meet tng on the 1_mportance of sustaining t h,e Reco ery It strong l y endorsed the Govern ent's 1n ten t 1on t o continue w th the proc,ess of po 1cy change part 1cularly rn the areas of e x.chang e rate adjust men t. the trade reg,me, restructurin g of publ1c expenditures, par astai.a eff1c1ency, ag ricultural producer prices and marketing, r estr uc ur rng of the industrial sector, ard rn;::rJverJ;e nt of t he t ars;:io t sect cr. The meeting also emphas ized the need to add ress scme cf trie l onge~-te,.rn 1ss ·es f ac,,.,.g th e c.oJrtr)', 1ric1ud·,r, ra;:nd p p.1 l at 1on grc;;t. h, th e deter1orat1on of trie eco1091col env1rc-'1rrient, ~r·d tne r,a •,-1.. ~ , .·_ c'l'. 1rnp ~1.e··en t of health and educa c10n se rv 1ces. he Group was informed that extens1 ve con sul:at 1'Jris he-:: :a· en :,'2ce bet ween tn e Governme nt and the IMF under t he Stard-by arrangement. The mee 1ng welcorred the continuing d1alog ue between le Go er~me nt and t ne IMF and st ressed t he importance of ma1nta1n1ng t he Recovery Prograrr as a basi s f or increased 1nternat1 on a1 s upport. pol1c1es and plans cf the Gcv err.ment. Members utl,'H:" their past and ne1-,· commitments which reflected th e meeti ng' s strong endorsement of t he Governmen t's program and whic h suggested that the total financ ng r equ 1rement s (rnc l udrng f ur th er debt r el ief) of us~ 955 million ,n 1987 and rn 1988 ..w,ll be me t . A number of .Par t1c1pants str es sed requirements. The meet ing welcomed the efforts made by the Gove rnment to imp rove aid coord1nat1on and urged that these efforts be cont inued. he ee 1 g ~3S atten ded by delegat1ons f rom , Canada, Oenffiar~ . Finland, France , the Federa l Republl c of Germany , Ireland, Italy, J apa n , t he Ne her la nas , r way, Sweden , Sw t zer 1and , t r e ·~n, ted i<, 'i gco, ., r.e United States , t he A~rica n DE: 1 elo;:iment Ban ~, t ne Arab Bank fer Eco ncm 1c De , el ov->~1 · t in .C,fr1ca , tre Cc•r:i ,1:">:, 1..,, of he E.Jr 0,-i -::)n C:n7c1n1t.1es , t ,,:' dU~ i r une fc:r Develop~ent , t he Kuwa1. Fund for EcJnn 1: De ~:o~-en t t n1 ~~~ L ,~ed Nat ions De eloprnent Programne . Observers fr rr, eel 1r a1d t -ie Je , el op:-- · r, : Ass,stan:: e Corm1t:e e cf the Orgar1zat.10n fo r Econ:-.11 1: Co0p!2r t. 1c1 a'1 d Dev e lopment. were al s~ pr esent .  lllllllf II If If If If If If If If If 111111 If II If If If If If If II Spooled by: James Huttlinger@OBPIOl@WORLDBANK Title: (input) Job Number: 7290 Total Size: 10553 Copies: 001 Time Spooled: Tue Oct 12 09:05:52 1999 Time Printed: Tue Oct 12 09:06:02 1999