Mauritania, IFM reach $253m loan agreement to curb climate adverse effects

The International Monetary Fund (IMF) will provide Mauritania $253 million in credit facility to help the country mitigate adverse effects of climate change, saharamedias website reports following an agreement between the two sides.

The loan will be disbursed in line with the IMF’s resilience and sustainability program designed for the country over the next three years. Mauritania will reimburse the credit over 20 years with an interest rate put at 2.5 per cent.

Felix Fischer, the IMF head of mission in Mauritania, argued that the program will make it easier for Mauritania to access this loan to limit carbon emissions and the dangers of climate change, manage its water resources and migrate to clean energy sources.

The IMF official also indicated that the Washington-based institution expects the African country to carry out fiscal reforms to increase local revenues, streamline government spending and revise the investment Code.