asked the Minister for Foreign Affairs if he is prepared to make special provision as a matter of urgency in the overseas aid budget to support the Mozambique programme of economic restructuring; and if he will make a statement on the matter.
Written Answers. - Mozambique Programme of Economic Restructuring.
46.
Mozambique is not a priority country and in present budgetary circumstances it is not possible to provide special assistance in respect of Mozambiques' programme of economic restructuring.
However, the European Community recently decided to grant aid worth 30 MECU specifically to support the second year of the economic reform package on which the authorities in Mozambique have embarked. This follows a similar decision made in 1987 involving aid valued at 40 MECU which is currently being disbursed. These decisions take the form of sectoral import programmes which will make foreign exchange available to key economic agencies, particularly in agriculture, fisheries and transport. Ireland was happy to support both these programmes which constitute an important contribution to the efforts at economic restructuring in Mozambique.
As a party to the Lomé Convention, Mozambique benefits from the European Development Fund. The Community is providing 130 MECU in grants and 1.5 MECU in risk capital to Mozambique under Lomé III. Mozambique also receives substantial amounts of food aid and emergency aid from the Community.