By Parliament has approved a $300 million loan from the World Bank aimed at supporting the First Resilient Recovery Development Policy Financing. The funding is crucial for implementing the government’s outlined policies in the 2024 Budget.
Initially facing opposition from the minority, who tied their support to the government withdrawing its request for a tax waiver exceeding $449 million, the loan secured approval after Finance Minister Mohammed Amin Adam pledged to revisit the tax exemption requests within two weeks, resolving the impasse.
Addressing the House, the Finance Minister clarified, “Let me take this opportunity to clarify a few issues. First of all, this is not an IMF facility, it is a World Bank facility. It is a concessional facility for 25 years with a grace period of five years and an interest rate of about 1.25 percent. It has a grant element of 26%.”
“It is concessional, and this house is familiar with such concessional facilities. Secondly, it is budget support. This same house approved the financing for the 2024 budget, totaling 61 billion. This loan is one of the facilities we are pursuing to finance the 2024 budget. As we already know, the 2024 budget allocated resources to different projects and programs for the year.”
“I want to assure them [the Minority] that I will review these exemptions. I will rationalize them, and I’ll report back to Parliament in two weeks. I hope that when I return, honorable members will support me in whatever rationalization we undertake,” he concluded.
