Government optimistic that Mozambique will come off FATF “grey list”
Mozambique: Public debt at $14.49B in Q1
12:18 CAT | 09 Aug 2023
The Mozambican state ended the first quarter with a total public debt stock of almost USD 14.490 billion (€13.141 billion), a slight reduction of 0.1% compared to the last quarter of 2022, according to official data.
According to the economic and social balance of the execution of the sbate Budget from January to March 2023 from the ministry of economy and finance, the external debt “maintains the trend of stabilisation”, having even “reduced by 2%”, to the equivalent of 634,972 million meticais (€9.015 billion).
“However, on the other hand, the trend of domestic debt growth persisted, with this component increasing by 5%, in line with the average growth of recent years. The growth in domestic debt is justified by the poor performance of revenue and lack of disbursement of external resources,” the document reads.
It adds that the situation forces the government “to resort to the issuance of Treasury Bills and other short-term loans to meet the financing of the cash deficit” and thus “ensure the execution” of the state budget for this year.
Total domestic debt on 31 March, including Treasury Bonds and Treasury Bills, amounted to almost 295.733 billion meticais (€4.2 billion).
The Mozambican government previously approved the so-called Public Debt Management Strategy 2023-2026, which guides debt options over the coming years and “bring the limits to debt sustainability indicators in credit contraction.
In terms of external debt, it provides for “favouring financing in the form of grants” and “in the form of highly concessional credits for profitable projects”, while in domestic debt, the priority is to “favour the issuance of long-maturity Treasury Bonds”.
Source: Lusa
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