By Our Correspondent

Lagos INVESTADVOCATE)-Tanzania Tuesday said its seeking to draw US$114 Million Standby Credit Facility (SCF) of the International Monetary Funds (IMF).

This is contained in a Press Release from the IMF and made available to www.investadvocateng.com in Lagos Nigeria.

“The Tanzanian authorities have informed the International Monetary Fund (IMF) that they have decided to draw the equivalent of SDR 74.6 million (about US$114.2 million) available to them under the Standby Credit Facility (SCF) arrangement approved on July 6, 2012” the Statement said.

According to the Statement, the Tanzanian Authorities consider this decision to be an integral part of their response to heightened external sector vulnerabilities and emerging balance of payments pressures, and expect this step to boost market confidence.

The IMF first review under the SCF arrangement for Tanzania was completed by the Executive Board on January 9, 2013.

On July 6, 2012, the Executive Board of the IMF completed the fourth review of Tanzania’s performance under the Policy Support Instrument (PSI) and approved a precautionary 18-month arrangement under the Standby Credit Facility (SCF) for SDR 149.175 million (about US$224.9 million).

According to the IMF, the precautionary SCF Arrangement is designed to provide Tanzania a financial cushion to withstand deterioration in external demand and access to global market financing. As the country is not facing any immediate balance of payment needs, the program will form part of an overall strategy to stave off any adverse effects that Tanzania could be facing as a result of the uncertainties in the global economy.