IMF defends audit of Mozambique’s foreign debt concealment

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IMF defends audit of Mozambique’s foreign debt concealment

2:19 CAT | 10 Mar 2017

File photo / IMF spokesman Gerry Rice

The International Monetary Fund (IMF) insisted yesterday that an independent audit of Mozambique’s ‘hidden debts’ must be completed before any negotiations on a new adjustment programme can start.

“We have been, as you know, emphasizing the importance of the independent audit to take account of the spending that was discovered a number of months ago. So we continue to follow that independent audit, and in that context pursue discussions on the possibility of a new IMF-supported program,” IMF spokesman Gerry Rice told a news conference.

In November 2016, the IMF condemned Mozambican authorities’ concealment of foreign debt amounting to US$1.37 billion (around 10.6% of GDP in 2015) between 2012 and 2015.

In remarks to reporters, Gerry Rice recalled that Mozambique had failed to pay a debt instalment in January, but said that “the IMF remains committed to helping Mozambique overcome the situation”.

In January, Mozambique failed to pay nearly a nearly US$60 million instalment on a US$727.5 million public debt issue in April last year. The debt had already been subject to a restructuring that extended the repayment term from 2020 to 2023 and increased the annual interest rate.

Source: Lusa