External debt: Government repays over 12 billion meticais

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External debt: Government repays over 12 billion meticais

2:59 CAT | 18 Nov 2019

Between January and September this year, the Maputo Executive paid out 12,073.7 million meticais in repayments of external public debt with bilateral and multilateral creditors, according to the National Treasury Directorate (DNT).

The amount paid was 32.4% higher than in the same period of 2018, when the figure was 8,874.7 million meticais.

In the first nine months of the year, the government contracted five concessional loans – with the OFID, the Eximbank of India, the International Monetary Fund (IMF), the Islamic Development Bank (IDB) and Japan. Loans amounted to US$251.9 million (about 15.5 billion meticais).

Regarding domestic debt, which in the period under review amounted to 171,409.5 million meticais, the National Treasury Directorate says that it paid about 5.6 billion meticais in amortisation, 54.2% less than in the first nine months of 2018.

With respect to the amortisation of domestic debt, in addition to the amount related to the payment of Treasury Bonds and bank financing, 760.8 million meticais related to the payment of the previous years’ debts with suppliers of goods and services in the context of restructuring and fiscal consolidation.

Expenditure on staff

Between January and September 2019, the DNT notes that expenses on personnel totalled 84,537.7 million meticais, corresponding to 80.8% of the annual budget, with salaries and remuneration (about 81.2 billion meticais) accounting for 81.8%, and other personnel expenses 62%.

Year-on-year (January to September 2018), personnel expenses grew by 15.2% in real terms, with wages and salaries increasing by 14.9% and other personnel expenses by 25.8%.

“The growth in personnel expenses is explained by the introduction of various administrative acts – new fixations, updates, promotions, progressions and career changes in the second half of 2018 – the impact of which is reflected in current year,” the DNT explains.

By Edson Arante