Aid partners approve $804.5 mln for Mozambique budget
Source: Reuters
MAPUTO, May 29 (Reuters) - A group of Mozambique's nineteen development partners have pledged to provide a $804.5 million aid package to support the 2010 state budget and development projects, state-run Noticias newspaper said on Friday. Under the agreement with the Programme Aid Partners (PAP), Mozambique's government has committed itself to continued poverty reduction, democracy and the respect of human rights. The newspaper said $471.8 million will directly support the budget and the remaining $332.7 million will be used for development projects. PAP comprises the African Development Bank, Austria, Belgium, Canada, Denmark, the European Union, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Britain and the World Bank. Noticias quoted the Irish ambassador Frank Sheridan to Mozambique as saying: "In general, the donors will continue fulfilling their bilateral commitments as stated in the strategic agreements with two of the partners slightly reducing their aid." Almost 55 percent of Mozambique's state budget is provided by PAP. Mozambique's mining sector has been hit by the global financial crisis, reducing commodity exports. Economic growth is also expected to slow in 2009. (Reporting by Charles Mangwiro)
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