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This paper discusses Republic of Mozambique’s Request for Disbursement under the Rapid Credit Facility (RCF). Reflecting the large budgetary and external financing gaps arising from emergency assistance and reconstruction needs, the authorities are seeking financial assistance under the RCF exogenous shock window. The financial assistance is intended to address large budgetary and external financing gaps arising from reconstruction needs after Cyclone Idai, which caused significant loss of life and infrastructure damage. The authorities remain committed to macroeconomic stability, which will also be underpinned by the IMF’s financing. The authorities are reallocating lower priority spending to emergency assistance, however, their room for manoeuvre is limited and the bulk of emergency assistance and reconstruction needs will have to be covered by the international community mostly in the form of grants to ensure debt sustainability. The authorities shared staff’s main policy recommendations, namely increasing the economy’s resilience and preparedness to adverse weather events that are becoming more frequent and intense due to climate change.
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