Mozambique to propose extension of payment terms and a drop in interest rates on loans
The International Monetary Fund (IMF) began a visit to Mozambique today to discuss the audit of the country’s hidden debts which led to the freezing of external support a year ago.
According to the IMF, “information gaps persist, particularly with regard to the use of loans” worth two billion dollars taken on by public enterprises run by the State Intelligence and Security Services (SISE) without the knowledge of parliament and international partners in 2013 and 2014.
The IMF and donors have made the resumption of direct support to the State Budget dependent on the results of the inquiries, and it is not yet clear what will happen.
The Kroll consultancy complained of a lack of collaboration from business executives when it came to providing information on the fate of the funds, and indicted several people, without naming them, for mismanagement and violation of the law, as well as dubbing the companies’ plans unrealistic.
The mission of the IMF staff is to “discuss the results of the audit with the authorities and possible follow-up measures”, the IMF said in a statement following the publication by the Mozambique Attorney General’s Office of an executive summary in June.
Among these measures is the possibility of the IMF “working with the authorities to address concerns related to the management of public resources”.
The mission will also “reassess the macroeconomic situation and discuss the authorities’ priorities for the 2018 budget,” the communique reads.
The agenda of meetings between the IMF and the Mozambican authorities remains undisclosed and all meetings will be held behind closed doors, a Fund source told Lusa.Source: Lusa
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