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Parliament Approves $300 Million World Bank Loan Following Minister Amin Adam’s Intervention on $449 Million Tax Waiver

Parliament has granted approval for a $300 million loan from the World Bank, designated to support the First Resilient Recovery Development Policy Financing. This funding is deemed critical for the government’s execution of outlined policies in the 2024 Budget.

Initially facing resistance from the minority, who stipulated their backing on the government retracting its request for a tax waiver exceeding $449 million, the loan eventually received the green light.

In addressing the House, Finance Minister Mohammed Amin Adam clarified key points, stating, “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, including a grant element of 26 percent.”

He further explained, “Secondly, it is budget support. This same house approved the financing for the 2024 budget, totaling 61 billion. And this is one of the facilities that we are pursuing to finance the 2024 budget. As we already know, the 2024 budget, through this house, allocated resources to different projects and programs for the year.”

In response to the minority’s concerns, Minister Amin Adam assured, “I want to assure them [Minority] that I will take a look at these exemptions. I will rationalize it, I’ll review it and I’ll come back in two weeks to report to parliament, and I hope that when I come, Honourable Members will support me in whatever rationalization we are going to do.”

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