Government to begin paying suppliers of goods and services this month

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Government to begin paying suppliers of goods and services this month

1:36 CAT | 13 Nov 2018

The government is to start paying overdue invoices to suppliers of goods and services this month, the minister of Economy and Finance, Adriano Maleiane announced yesterday.

“The first payment is going to happen this month,” Minister Maleiane told members of the Parliamentary Commission on Planning and Budget in answer to questions.

Suppliers of goods and services owed up to 60 million meticais will receive the money in full and creditors entitled to an amount above that will initially receive 10% of the money owed.

In total, the state will pay 2,090 companies that have provided goods and services in the last two years and have not received payment due to the current economic and financial crisis.

Adriano Maleiane said that companies that did not receive what they were owed in full would have part of the money titled and be able to use the title in the capital market or as a debt guarantee.

Prime Minister Agostinho do Rosário said in March of this year that the Mozambican government had 2.7 billion meticais at its disposal to pay 17% of state debt to the private sector.

One of the concerns presented by members of the parliamentary commission concerns the debt that will be incurred to finance the National Hydrocarbons Company’s contribution to the Rovuma Basin gas projects. In reply, the minister assured them that there would be no risk in the process.

The minister also spoke about the US$350 million capital gains that the government collected in 2017, saying that part of the amount would be used next year.

Regarding hiring in the public sector, the finance minister said that the executive wanted to reduce the burden of the payroll as a proportion of gross domestic product (GDP). At present, about 10 percent of Mozambican GDP is consumed by wages, compared with an average of 6.6 percent in other countries.

Source: Lusa / O País