Cover -- Contents -- RECENT DEVELOPMENTS AND PROGRAM PERFORMANCE -- A. Macroeconomic Developments -- B. Monetary Response -- C. Fiscal Response -- D. Structural Reforms -- OUTLOOK AND RISKS -- ARTICLE IV: DISCUSSIONS -- A. Preparing for Natural Resource Management -- B. Fiscal Policy -- C. Debt Management and Borrowing Strategy -- D. Monetary Policy and Financial Sector Issues -- E. External Sector Stability -- F. Inclusive Growth -- NEW PSI AND PROGRAM ISSUES -- STAFF APPRAISAL -- BOXES -- 1. Risk Assessment Matrix -- 2. Social Protection Floor in Mozambique -- 3. Financial Inclusion in Mozambique -- FIGURES -- 1. Impact of Global Developments -- 2. Inflation and Monetary Developments -- 3. Fiscal Developments -- TABLES -- 1. Selected Economic and Financial Indicators, 2010-18 -- 2. Government Finances, 2010-13 -- 3. Government Finances, 2010-18 -- 4. Monetary Survey, 2010-13 -- 5. Balance of Payments, 2010-18 -- 6. Financial Soundness Indicators for Banking Sector, 2003-12 -- 7. Quantitative Assessment Criteria and Indicative Targets Under the 2010-13 PSI -- 8. Quantitative Assessment Criteria and Indicative Targets Under the Proposed 2013-16 PSI -- 9. Structural Benchmarks Under the Current PSI 2010-13 -- APPENDIXES -- I. Letter of Intent -- Attachment 1: Memorandum of Economic and Financial Policies -- Attachment 2: Technical Memorandum of Understanding -- II. The Impact of Megaprojects on Growth and Fiscal Revenue -- III. External Balance and Reserve Adequacy Assessment -- IV. Natural Gas, Public Investment, and Debt Sustainability -- V. Implementation of the Poverty Reduction Strategy -- Contents -- RELATIONS WITH THE FUND -- WORLD BANK-IMF COLLABORATION -- STATISTICAL ISSUES.