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Japan dishes out 25.6bn/- to support poverty reduction initiatives
2007-09-19 09:08:20
By Njonanje Samwel
The Governments of Japan and Tanzania yesterday signed two agreements under which the former would dish out 25.6bn/- to support the country`s budget and poverty reduction initiatives.
Finance Permanent Secretary Gray Mgonja and Japanese Ambassador to Tanzania, Makoto Ito, signed the agreements in Dar es Salaam on behalf of their governments.
Speaking shortly after the ceremony, Mgonja said part of the assistance would be channeled to the Poverty Reduction Support Credit (PRSC) which is being co-financed with the World Bank.
`The money will be directed to supporting government budget for implementing priority activities outlined in the National Strategy for Growth and Reduction of Poverty (MKUKUTA),` said Mgonja.
According to the PS, another portion of support would support HIV/Aids control programmes, especially the purchasing of test kits, equipment and pharmaceutical necessary for the execution of the control activities.
`This would provide an important boost to the government efforts to slow down HIV/Aids infection in the country. The government appreciates the continued support from the Japanese government,` added Mgonja.
Latest records show that this is the fourth assistance by Japan to support efforts on HIV/Aids control and related programmes.
The Japanese support focuses on the prevention and reduction of the spread of HIV/Aids and progressing initiatives aimed to providing care and treatment for AIDS victims.
For his part, the Japanese Ambassador said Makoto, said that was the first exchange of notes for the assistance for co-financing of the World Bank’s fifth Poverty Reduction Support Credit (PRSC).
`This assistance will be extended with the conditions under Japan`s new loan arrangement, called Minimal Interest Rate Initiative (MIRAI) which offers preferential terms of loans with the annual interest rate of 0.01 per cent,` he said.
Japan is one of the country`s strategic development partners that provide general budgetary support. Records show that Japan started providing grant (GBS) since 2001 and loan (GBS) last year, in the context of further accelerating government initiatives in the implementation of the national strategy for growth and reduction of poverty (Mkukuta). See photo on Page 3
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