IMF Res Rep attacks lack of debt strategy – By Joseph Hanlon

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IMF Res Rep attacks lack of debt strategy – By Joseph Hanlon

7:38 CAT | 19 Apr 2017

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Mozambique’s debt renegotiations have slowed down and the government has “no clear overview or strategy”, warned IMF Resident Representative Ari Aisen in two recent speeches. And he warns that “new loans for investment projects are being contracted” without full discussion, including a $157 million Chinese export credit to fund the long-delayed digital migration project.

https://www.imf.org/en/Countries/ResRep/MOZ – News and Highlights
http://www.verdade.co.mz/tema-de-fundo/35-themadefundo/61862-governo-de-nyusi-desafia-fmi-com-novas-dividas-publica-de-centenas-de-milhoes-de-dolares

The talks were to the donor coordination platform on 6 April and the US-Mozambique Chamber of Commerce on 12 April.

Aisen praises the cut to bread and fuel subsidies, and demand further cuts, including to the electricity subsidy. And he notes there is still a “substantial accumulation of arrears to suppliers (e.g. oil companies) and VAT refund.” And he warns of fiscal problems in the large state companies. In his speeches, made before the new minimum wages were announced, Aisen specifically called for “containing the expansion of the wage bill,” but the civil service minimum wage has been increased by the rate of inflation.

By Joseph Hanon

Source: News reports & clippings