JOHANNESBURG, (Reuters) – The International Monetary Fund is set to begin discussions on a Mozambique-specific extended credit facility next month, it announced Tuesday. This was the first possible programme the Fund has initiated with Mozambique since 2016 when support was suspended.

In a corruption scandal worth $2 billion, Mozambique revealed a large amount of state-backed borrowing that it previously had not disclosed. This led to a collapse in the currency and an economic crisis.

Although the IMF had provided targeted assistance for Mozambique during natural disasters and cyclones since then, this extended credit facility would have been its first formal program.

“Staff stand ready to commence negotiations in late January 2022, in accordance with the authorities’ preferred timeline,” the IMF said in a statement after a staff visit to the country.

Fund stated that the programme was designed to ease financial pressures in Mozambique’s recovery from the pandemic. It also aims to support poverty reduction and equitable economic growth.

Mozambique, one of the poorest countries in the world, is struggling with its large debt load, an Islamist insurgency, and COVID-19’s impact, leading to the country’s first recession in 30 years.

Mozambique emerged as an important global exporter for LNG after the discovery of huge liquefied reserves. But corruption scandals and the threat of insurgency have degraded the promise benefits.

IMF forecasts that growth will be 2.2% and 4% this year, respectively. Long-term projections are even more optimistic with LNG resources realizing an even larger increase.

The outlook is vulnerable to climate change and could be affected by a worsening security situation that could cause delays to or stop LNG projects.

The fiscal pressures are extreme, the report said. These include the financial difficulties faced by state-owned companies and debts resulting from the corruption scandal.

Mozambique disputes in court the validity and legality of certain debts. This includes a $622million loan to an investment bank. Credit Suisse (SIX:).