Mozambique: Restructuring state companies increases dividends by 9%
Roger Nord, deputy director of the African Department of the International Monetary Fund (IMF), said on Wednesday that it is still too soon to state precisely the total amount of debt kept undisclosed by the Mozambique government, said by the Mozambican prime minister at the end of April to amount to US$1.4 billion.
“We have made progress in our discussions with the government of Mozambique to assess the exact amount of hidden debt,” said Nord. “We are pleased that the Mozambican authorities have been so cooperative,” he added.
According to Bloomberg, the IMF will issue a statement when the exact amount of the debt is calculated, based on meetings taking place in Washington with Mozambique government technical teams.
Nord’s statement came on the same day that the Global Capital website reported that the IMF had confirmed that neither its Standby Credit Facility nor its Policy Supported Instrument had been cancelled.
Also on Wednesday, Moody’s ratings agency said that the hidden loans will add another US$250 million a year to Mozambique’s interest bills, adding that the discovery of the loans is not positive from the country’s sovereign credit analysis point of view.
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