Mozambique: Government failed to repay 3.4 billion meticais of debt

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Mozambique: Government failed to repay 3.4 billion meticais of debt

7:55 CAT | 12 May 2025

File photo: O País

According to the Mozambican government’s Annual Report on the Public Debt, it failed to repay 3.4 billion meticais (about 53 million dollars) of debt that fell due in 2024.

The report, announced in the Mozambican parliament, the Assembly of the Republic, on Friday, blamed the failure to pay on the instability that gripped the country following protests at fraudulent results of the October general elections.

Summarising the report, the independent television station STV revealed that the main creditor was Portugal, which should have received 1.8 billion meticais.

READ: Mozambique: Over 50% of external debt service arrears in 2024 were to Portugal

The other main creditors mentioned in the report are:

International Monetary Fund (IMF) – 718.7 million meticais;

Russia – 259.9 million meticais;

Islamic Development Bank – 206.2 million meticais;

India – 102.7 million meticais.

These sums must now be paid in the 2025 financial year. “The transition of these sums to 2025 implies additional pressure on the State treasury, given the increase in the financial commitments that must be honoured in the next financial year”, said the government report. “This challenging scenario points to the urgent need to implement effective measures to mitigate the risks associated with debt servicing”.

Debt arrears worsened still further when the debt to creditors not covered by terms Mozambique negotiated with the Paris Club are considered. The debt owed to these creditors added 394.3 million dollars to the debt stock in 2024. This debt breaks down as follows:

Libya – 253.38 million dollars

Angola – 61.45 million dollars

Bulgaria – 57.8 million dollars

Poland – 21.7 million dollars.

The report added that the Government is negotiating with these creditors to find coordinated solutions to regularise the debts.

O Executivo falhou, no ano passado, o pagamento de uma dívida de 3,4 mil milhões de Meticais devido à instabilidade pós-eleitoral. O maior credor é Portugal, que tem a receber pouco mais de 1.8 mil milhões de meticais.
#tsu #stvnoticias #gruposoico
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— stvnoticias (@stvnoticias_mz) May 10, 2025