Economists differ on IMF bailout for Mozambique

Login

Register

http://www.clubofmozambique.com/

Economists differ on IMF bailout for Mozambique

12:34 CAT | 21 Oct 2016

File Photo / President Filipe Nyusi meets Christine Lagarde in Washington, September 15 2016

In Mozambique, opinions differ on the need for a possible bailout as a result of high indebtedness and the worsening of the economic and financial situation.

Some economists interviewed by VOA said that Mozambique is currently facing a situation similar to that experienced in Portugal, which led to a bailout.

António Francisco says that Mozambique does not, at this time, have the ability to pay its debts and needs to renegotiate them, but it is unclear how the government will do so in a situation where domestic savings are very limited.

One economist pointed out that “most probably, Mozambique will have to accept a bailout to manage this debt, because there is no capacity.”

Economist João Mosca thinks the opposite.

“For there to be a bailout, there must be a perception that the political, economic and situation is stable, because without that, there can hardly be a bailout,” Mosca argues.

In his opinion, the international partners are demanding a set of conditions for the resumption of cooperation with Mozambique to which “the government has not yet responded positively”.

Source: Voa Portugues